Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Analysis of Profitability Ratios

Microsoft Excel

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


Profitability Ratios (Summary)

Procter & Gamble Co., profitability ratios

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Return on Sales
Gross profit margin 47.86% 47.43% 51.25% 50.32% 48.63% 48.73%
Operating profit margin 22.11% 22.21% 23.63% 22.14% 8.11% 20.52%
Net profit margin 17.87% 18.38% 18.79% 18.36% 5.76% 14.59%
Return on Investment
Return on equity (ROE) 31.33% 31.64% 30.85% 28.00% 8.26% 18.64%
Return on assets (ROA) 12.13% 12.58% 11.99% 10.79% 3.39% 8.24%

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).

Profitability 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. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Procter & Gamble Co. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Procter & Gamble Co. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Procter & Gamble Co. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Procter & Gamble Co. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Gross Profit Margin

Procter & Gamble Co., gross profit margin calculation

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in millions)
Gross profit 39,246 38,030 39,010 35,700 32,916 32,564
Net sales 82,006 80,187 76,118 70,950 67,684 66,832
Profitability Ratio
Gross profit margin1 47.86% 47.43% 51.25% 50.32% 48.63% 48.73%

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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 39,246 ÷ 82,006 = 47.86%

Profitability 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. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Operating Profit Margin

Procter & Gamble Co., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in millions)
Operating income 18,134 17,813 17,986 15,706 5,487 13,711
Net sales 82,006 80,187 76,118 70,950 67,684 66,832
Profitability Ratio
Operating profit margin1 22.11% 22.21% 23.63% 22.14% 8.11% 20.52%
Benchmarks
Operating Profit Margin, Industry
Consumer Staples 6.58% 7.61% 7.52% 7.21% 6.49%

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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 18,134 ÷ 82,006 = 22.11%

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Procter & Gamble Co. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Procter & Gamble Co., net profit margin calculation, comparison to benchmarks

Microsoft Excel
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
Net sales 82,006 80,187 76,118 70,950 67,684 66,832
Profitability Ratio
Net profit margin1 17.87% 18.38% 18.79% 18.36% 5.76% 14.59%
Benchmarks
Net Profit Margin, Industry
Consumer Staples 4.99% 5.49% 5.54% 5.58% 4.00%

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
Net profit margin = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Net sales
= 100 × 14,653 ÷ 82,006 = 17.87%

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Procter & Gamble Co. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Procter & Gamble Co., ROE calculation, comparison to benchmarks

Microsoft Excel
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
Shareholders’ equity attributable to Procter & Gamble 46,777 46,589 46,378 46,521 47,194 52,293
Profitability Ratio
ROE1 31.33% 31.64% 30.85% 28.00% 8.26% 18.64%
Benchmarks
ROE, Industry
Consumer Staples 25.87% 26.95% 25.98% 25.33% 17.98%

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
ROE = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × 14,653 ÷ 46,777 = 31.33%

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Procter & Gamble Co. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Return on Assets (ROA)

Procter & Gamble Co., ROA calculation, comparison to benchmarks

Microsoft Excel
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
Total assets 120,829 117,208 119,307 120,700 115,095 118,310
Profitability Ratio
ROA1 12.13% 12.58% 11.99% 10.79% 3.39% 8.24%
Benchmarks
ROA, Industry
Consumer Staples 7.96% 8.47% 8.00% 7.62% 5.73%

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
ROA = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Total assets
= 100 × 14,653 ÷ 120,829 = 12.13%

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Procter & Gamble Co. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.