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Procter & Gamble Co. (PG) | Profitability Analysis

Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).


Ratios (Summary)

Procter & Gamble Co., profitability ratios

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    Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007
  Return on Sales
Gross profit margin 49.34% 50.62% 51.96% 50.78% 51.27% 52.03%
Operating profit margin 15.88% 19.16% 20.30% 20.40% 20.46% 20.20%
Net profit margin 12.85% 14.29% 16.13% 17.00% 14.46% 13.52%
  Return on Investment
Return on equity (ROE) 16.95% 17.44% 20.84% 21.29% 17.38% 15.49%
Return on assets (ROA) 8.13% 8.53% 9.94% 9.96% 8.39% 7.49%

Source: Based on data from Procter & Gamble Co. Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Procter & Gamble Co.'s gross profit margin deteriorated from 2010 to 2011 and from 2011 to 2012.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Procter & Gamble Co.'s operating profit margin deteriorated from 2010 to 2011 and from 2011 to 2012.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Procter & Gamble Co.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Procter & Gamble Co.'s ROE deteriorated from 2010 to 2011 and from 2011 to 2012.
ROA A profitability ratio calculated as net income divided by total assets. Procter & Gamble Co.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012.

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Gross Profit Margin

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    Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007
  Selected Financial Data (USD $ in millions)
Gross profit 41,289  41,791  41,019  40,131  42,808  39,790 
Net sales 83,680  82,559  78,938  79,029  83,503  76,476 
   
Gross profit margin1 49.34% 50.62% 51.96% 50.78% 51.27% 52.03%

Source: Based on data from Procter & Gamble Co. Annual Reports

2012 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 41,289 ÷ 83,680 = 49.34%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Procter & Gamble Co.'s gross profit margin deteriorated from 2010 to 2011 and from 2011 to 2012.

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Operating Profit Margin

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    Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007
  Selected Financial Data (USD $ in millions)
Operating income 13,292  15,818  16,021  16,123  17,083  15,450 
Net sales 83,680  82,559  78,938  79,029  83,503  76,476 
  Operating Profit Margin, Comparison to Industry
Procter & Gamble Co.1 15.88% 19.16% 20.30% 20.40% 20.46% 20.20%
  Industry, Consumer Goods 11.22% 11.69% 11.15% 9.78% 13.65% –%

Source: Based on data from Procter & Gamble Co. Annual Reports

2012 Calculations

1 Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 13,292 ÷ 83,680 = 15.88%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Procter & Gamble Co.'s operating profit margin deteriorated from 2010 to 2011 and from 2011 to 2012.

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Net Profit Margin

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    Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007
  Selected Financial Data (USD $ in millions)
Net earnings attributable to Procter & Gamble 10,756  11,797  12,736  13,436  12,075  10,340 
Net sales 83,680  82,559  78,938  79,029  83,503  76,476 
  Net Profit Margin, Comparison to Industry
Procter & Gamble Co.1 12.85% 14.29% 16.13% 17.00% 14.46% 13.52%
  Industry, Consumer Goods 7.92% 8.48% 8.87% 6.92% 9.83% –%

Source: Based on data from Procter & Gamble Co. Annual Reports

2012 Calculations

1 Net profit margin = 100 × Net earnings attributable to Procter & Gamble ÷ Net sales
= 100 × 10,756 ÷ 83,680 = 12.85%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Procter & Gamble Co.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012.

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Return on Equity (ROE)

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    Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007
  Selected Financial Data (USD $ in millions)
Net earnings attributable to Procter & Gamble 10,756  11,797  12,736  13,436  12,075  10,340 
Shareholders' equity attributable to parent 63,439  67,640  61,115  63,099  69,494  66,760 
  ROE, Comparison to Industry
Procter & Gamble Co.1 16.95% 17.44% 20.84% 21.29% 17.38% 15.49%
  Industry, Consumer Goods 17.43% 18.57% 18.69% 15.59% 23.49% –%

Source: Based on data from Procter & Gamble Co. Annual Reports

2012 Calculations

1 ROE = 100 × Net earnings attributable to Procter & Gamble ÷ Shareholders' equity attributable to parent
= 100 × 10,756 ÷ 63,439 = 16.95%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Procter & Gamble Co.'s ROE deteriorated from 2010 to 2011 and from 2011 to 2012.

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Return on Assets (ROA)

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    Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007
  Selected Financial Data (USD $ in millions)
Net earnings attributable to Procter & Gamble 10,756  11,797  12,736  13,436  12,075  10,340 
Total assets 132,244  138,354  128,172  134,833  143,992  138,014 
  ROA, Comparison to Industry
Procter & Gamble Co.1 8.13% 8.53% 9.94% 9.96% 8.39% 7.49%
  Industry, Consumer Goods 5.96% 6.50% 6.63% 5.61% 8.66% –%

Source: Based on data from Procter & Gamble Co. Annual Reports

2012 Calculations

1 ROA = 100 × Net earnings attributable to Procter & Gamble ÷ Total assets
= 100 × 10,756 ÷ 132,244 = 8.13%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Procter & Gamble Co.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012.

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