Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Procter & Gamble Co., solvency ratios

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Debt Ratios
Debt to equity	0.74	0.68	0.69	0.75	0.64	0.60
Debt to equity (including operating lease liability)	0.76	0.69	0.71	0.77	0.64	0.60
Debt to capital	0.43	0.40	0.41	0.43	0.39	0.37
Debt to capital (including operating lease liability)	0.43	0.41	0.41	0.43	0.39	0.37
Debt to assets	0.29	0.27	0.27	0.29	0.26	0.26
Debt to assets (including operating lease liability)	0.29	0.28	0.28	0.30	0.26	0.26
Financial leverage	2.58	2.52	2.57	2.59	2.44	2.26
Coverage Ratios
Interest coverage	25.28	41.99	36.09	35.05	12.92	27.34
Fixed charge coverage	13.66	16.98	15.83	14.54	5.85	11.67

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Download chart

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Procter & Gamble Co. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Procter & Gamble Co. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Procter & Gamble Co. financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Download chart

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Procter & Gamble Co. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Procter & Gamble Co. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co., debt to equity calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Debt due within one year	10,229)	8,645)	8,889)	11,183)	9,697)	10,423)
Long-term debt, excluding due within one year	24,378)	22,848)	23,099)	23,537)	20,395)	20,863)
Total debt	34,607)	31,493)	31,988)	34,720)	30,092)	31,286)

Shareholders’ equity attributable to Procter & Gamble	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Solvency Ratio
Debt to equity¹	0.74	0.68	0.69	0.75	0.64	0.60
Benchmarks
Debt to Equity, Industry
Consumer Staples	1.03	0.98	1.03	1.14	1.07	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
= 34,607 ÷ 46,777 = 0.74

Download chart

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Debt due within one year	10,229)	8,645)	8,889)	11,183)	9,697)	10,423)
Long-term debt, excluding due within one year	24,378)	22,848)	23,099)	23,537)	20,395)	20,863)
Total debt	34,607)	31,493)	31,988)	34,720)	30,092)	31,286)
Current operating lease liabilities	222)	205)	219)	239)	—)	—)
Noncurrent operating lease liabilities	595)	595)	631)	652)	—)	—)
Total debt (including operating lease liability)	35,424)	32,293)	32,838)	35,611)	30,092)	31,286)

Shareholders’ equity attributable to Procter & Gamble	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Solvency Ratio
Debt to equity (including operating lease liability)¹	0.76	0.69	0.71	0.77	0.64	0.60
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Consumer Staples	1.14	1.10	1.14	1.28	1.09	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity attributable to Procter & Gamble
= 35,424 ÷ 46,777 = 0.76

Download chart

Solvency ratio	Description	The company
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co., debt to capital calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Debt due within one year	10,229)	8,645)	8,889)	11,183)	9,697)	10,423)
Long-term debt, excluding due within one year	24,378)	22,848)	23,099)	23,537)	20,395)	20,863)
Total debt	34,607)	31,493)	31,988)	34,720)	30,092)	31,286)
Shareholders’ equity attributable to Procter & Gamble	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Total capital	81,384)	78,082)	78,366)	81,241)	77,286)	83,579)
Solvency Ratio
Debt to capital¹	0.43	0.40	0.41	0.43	0.39	0.37
Benchmarks
Debt to Capital, Industry
Consumer Staples	0.51	0.50	0.51	0.53	0.52	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 34,607 ÷ 81,384 = 0.43

Download chart

Solvency ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Debt due within one year	10,229)	8,645)	8,889)	11,183)	9,697)	10,423)
Long-term debt, excluding due within one year	24,378)	22,848)	23,099)	23,537)	20,395)	20,863)
Total debt	34,607)	31,493)	31,988)	34,720)	30,092)	31,286)
Current operating lease liabilities	222)	205)	219)	239)	—)	—)
Noncurrent operating lease liabilities	595)	595)	631)	652)	—)	—)
Total debt (including operating lease liability)	35,424)	32,293)	32,838)	35,611)	30,092)	31,286)
Shareholders’ equity attributable to Procter & Gamble	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Total capital (including operating lease liability)	82,201)	78,882)	79,216)	82,132)	77,286)	83,579)
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.43	0.41	0.41	0.43	0.39	0.37
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Consumer Staples	0.53	0.52	0.53	0.56	0.52	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 35,424 ÷ 82,201 = 0.43

Download chart

Solvency ratio	Description	The company
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co., debt to assets calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Debt due within one year	10,229)	8,645)	8,889)	11,183)	9,697)	10,423)
Long-term debt, excluding due within one year	24,378)	22,848)	23,099)	23,537)	20,395)	20,863)
Total debt	34,607)	31,493)	31,988)	34,720)	30,092)	31,286)

Total assets	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Solvency Ratio
Debt to assets¹	0.29	0.27	0.27	0.29	0.26	0.26
Benchmarks
Debt to Assets, Industry
Consumer Staples	0.30	0.29	0.30	0.33	0.33	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 34,607 ÷ 120,829 = 0.29

Download chart

Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Procter & Gamble Co. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Procter & Gamble Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Debt due within one year	10,229)	8,645)	8,889)	11,183)	9,697)	10,423)
Long-term debt, excluding due within one year	24,378)	22,848)	23,099)	23,537)	20,395)	20,863)
Total debt	34,607)	31,493)	31,988)	34,720)	30,092)	31,286)
Current operating lease liabilities	222)	205)	219)	239)	—)	—)
Noncurrent operating lease liabilities	595)	595)	631)	652)	—)	—)
Total debt (including operating lease liability)	35,424)	32,293)	32,838)	35,611)	30,092)	31,286)

Total assets	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.29	0.28	0.28	0.30	0.26	0.26
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Consumer Staples	0.33	0.32	0.33	0.36	0.33	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 35,424 ÷ 120,829 = 0.29

Download chart

Solvency ratio	Description	The company
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Procter & Gamble Co. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Procter & Gamble Co., financial leverage calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Total assets	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Shareholders’ equity attributable to Procter & Gamble	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Solvency Ratio
Financial leverage¹	2.58	2.52	2.57	2.59	2.44	2.26
Benchmarks
Financial Leverage, Industry
Consumer Staples	3.47	3.40	3.45	3.50	3.28	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= 120,829 ÷ 46,777 = 2.58

Download chart

Solvency ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Procter & Gamble Co. financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Procter & Gamble Co., interest coverage calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Add: Net income attributable to noncontrolling interest	85)	51)	46)	76)	69)	111)
Add: Income tax expense	3,615)	3,202)	3,263)	2,731)	2,103)	3,465)
Add: Interest expense	756)	439)	502)	465)	509)	506)
Earnings before interest and tax (EBIT)	19,109)	18,434)	18,117)	16,299)	6,578)	13,832)
Solvency Ratio
Interest coverage¹	25.28	41.99	36.09	35.05	12.92	27.34
Benchmarks
Interest Coverage, Industry
Consumer Staples	11.88	14.21	10.01	10.46	7.90	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 19,109 ÷ 756 = 25.28

Download chart

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Procter & Gamble Co. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co., fixed charge coverage calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	28.10%
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Add: Net income attributable to noncontrolling interest	85)	51)	46)	76)	69)	111)
Add: Income tax expense	3,615)	3,202)	3,263)	2,731)	2,103)	3,465)
Add: Interest expense	756)	439)	502)	465)	509)	506)
Earnings before interest and tax (EBIT)	19,109)	18,434)	18,117)	16,299)	6,578)	13,832)
Add: Operating lease cost	308)	309)	320)	347)	341)	340)
Earnings before fixed charges and tax	19,417)	18,743)	18,437)	16,646)	6,919)	14,172)

Interest expense	756)	439)	502)	465)	509)	506)
Operating lease cost	308)	309)	320)	347)	341)	340)
Preferred dividends	282)	281)	271)	263)	263)	265)
Preferred dividends, tax adjustment¹	75)	75)	72)	70)	70)	104)
Preferred dividends, after tax adjustment	357)	356)	343)	333)	333)	369)
Fixed charges	1,421)	1,104)	1,165)	1,145)	1,183)	1,215)
Solvency Ratio
Fixed charge coverage²	13.66	16.98	15.83	14.54	5.85	11.67
Benchmarks
Fixed Charge Coverage, Industry
Consumer Staples	7.71	8.59	6.77	6.80	5.01	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ 2023 Calculation
Preferred dividends, tax adjustment = (Preferred dividends × U.S. federal statutory income tax rate) ÷ (1 − U.S. federal statutory income tax rate)
= (282 × 21.00%) ÷ (1 − 21.00%) = 75

² 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 19,417 ÷ 1,421 = 13.66

Download chart

Solvency ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Procter & Gamble Co. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co. (NYSE:PG)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage