Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

$24.99

Analysis of Goodwill and Intangible Assets

Microsoft Excel

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Goodwill and Intangible Asset Disclosure

Procter & Gamble Co., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Goodwill
Brands
Patents and technology
Customer relationships
Other
Intangible assets with determinable lives, gross carrying amount
Accumulated amortization
Intangible assets with determinable lives, net
Brands
Intangible assets with indefinite lives
Identifiable intangible assets
Goodwill and intangible assets

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).


The financial data reveals several notable trends in the composition and valuation of intangible assets over the analyzed periods.

Goodwill
Goodwill values exhibit moderate fluctuations, rising from 39,901 million USD in mid-2020 to a peak of 40,924 million USD in mid-2021, followed by a slight decline and stabilization around 40,300 to 41,650 million USD in subsequent years. The overall trend suggests relative stability with some minor adjustments.
Brands
The valuation of brands as an intangible asset shows a gradual upward trend, increasing from 3,820 million USD in 2020 to 4,449 million USD by 2025. This steady increase indicates continued investment or revaluation efforts supporting brand value enhancement.
Patents and Technology
The patents and technology asset values remain remarkably stable, hovering close to 2,775 million USD throughout the period. Minor yearly variations are observed but no significant trend of growth or decline is apparent.
Customer Relationships
Customer relationship intangible assets show a generally positive trend, rising from 1,752 million USD in 2020 to 1,879 million USD in 2025, despite a slight dip in the mid periods. This suggests maintained or expanded customer equity.
Other Intangible Assets
Other minor intangible assets experience a sharp decrease around 2023, falling from approximately 147-150 million USD to around 72-73 million USD. This marked reduction may suggest write-offs, disposals, or reclassifications in this category.
Intangible Assets with Determinable Lives (Gross Carrying Amount)
These assets grow steadily from 8,491 million USD to 9,204 million USD over the period, indicating continued acquisitions or capitalization of intangible assets with finite useful lives.
Accumulated Amortization
Accumulated amortization consistently increases in magnitude (becoming more negative) from -5,730 million USD to -7,008 million USD. This reflects ongoing amortization of finite-life intangible assets, in line with expectations as assets age.
Intangible Assets with Determinable Lives (Net)
The net value of intangible assets with determinable lives follows a fluctuating but generally decreasing pattern, falling from 2,761 million USD in 2020 to 2,196 million USD in 2025. This trajectory is influenced by the interplay of gross asset additions and amortization.
Brands with Indefinite Lives
The value of brands classified as indefinite-life intangibles remains effectively constant around 20,900 to 21,100 million USD until mid-2023, after which it declines to approximately 19,600 to 19,700 million USD. The drop in the last two periods may reflect impairment considerations or revaluation initiatives.
Identifiable Intangible Assets
The total identifiable intangible assets exhibit stability until mid-2023, averaging near 23,700 million USD, followed by a decrease to around 22,000 million USD by 2025. This reduction aligns with declines seen in brands and net determinate-life assets, implying a contraction in overall identifiable intangible asset base.
Goodwill and Intangible Assets Combined
The combined total of goodwill and intangible assets fluctuates around the mid-60,000 million USD range, peaking near 64,566 million USD in 2021 and bottoming slightly at 62,350 million USD in 2024 before recovering to 63,560 million USD in 2025. This stability suggests balanced write-downs or impairments are offset by new acquisitions or revaluations.

In summary, the data indicates a generally stable intangible asset base with modest growth in certain components such as brands and customer relationships. The decline in other intangibles and the net determinable-life assets reflects ongoing amortization and possible impairment activities. The overall goodwill and intangible assets balance remains largely steady, demonstrating the company's consistent management of its intangible resources.


Adjustments to Financial Statements: Removal of Goodwill

Procter & Gamble Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Adjustment to Total Assets
Total assets (as reported)
Less: Goodwill
Total assets (adjusted)
Adjustment to Shareholders’ Equity Attributable To Procter & Gamble
Shareholders’ equity attributable to Procter & Gamble (as reported)
Less: Goodwill
Shareholders’ equity attributable to Procter & Gamble (adjusted)

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).


Total Assets
Reported total assets demonstrate a generally stable pattern with minor fluctuations over the years. Starting at 120,700 million US$ in June 2020, there is a slight decline through 2021 and 2022, reaching a low of 117,208 million US$, followed by a recovery trend increasing to 125,231 million US$ by June 2025. Adjusted total assets, which exclude goodwill, show a downward trajectory from 80,799 million US$ in 2020 to 77,508 million US$ in 2022, then gradually recovering to 83,581 million US$ by 2025. The adjusted figures consistently remain considerably lower than the reported values, indicating a significant goodwill component within the reported asset base.
Shareholders’ Equity
Reported shareholders’ equity attributable to Procter & Gamble remains relatively stable with a slight upward trend. Starting at 46,521 million US$ in 2020, the equity value fluctuates minimally through 2021 to 2023 around the 46,300 - 46,700 million US$ range, before showing a noticeable increase to 52,012 million US$ by 2025. In contrast, the adjusted shareholders’ equity, reflecting the exclusion of goodwill, shows more pronounced volatility. The adjusted equity declines from 6,620 million US$ in 2020 to 5,454 million US$ in 2021, rebounds to 6,889 million US$ in 2022, dips slightly in 2023 to 6,118 million US$, and then rises significantly to 10,362 million US$ in 2025. This volatility in adjusted equity implies changes in tangible equity components or goodwill impairments/revaluations affecting the net asset value after adjustments.
Insights and Patterns
The divergence between reported and adjusted figures throughout the period highlights the material impact of goodwill on the financial position. While reported figures stay relatively stable or show modest growth, adjusted figures demonstrate more volatility and lower absolute values, suggesting goodwill represents a substantial part of the company’s reported assets and equity. The recovery phase observed in both total assets and adjusted total assets after 2022 indicates possible strategic asset management or revaluation activities. The steady increase in reported shareholders’ equity since 2023 coupled with the sharp improvement in adjusted equity by 2025 points to enhanced tangible equity buildup or reduced intangible impairments towards the end of the period.

Procter & Gamble Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Procter & Gamble Co., adjusted financial ratios

Microsoft Excel
Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Total Asset Turnover
Reported total asset turnover
Adjusted total asset turnover
Financial Leverage
Reported financial leverage
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE
Adjusted ROE
Return on Assets (ROA)
Reported ROA
Adjusted ROA

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).


The financial data reveals distinct trends over the analyzed periods, highlighting the company's evolving operational efficiency and capital structure both in reported terms and when adjusted for goodwill.

Total Asset Turnover
The reported total asset turnover shows a gradual increase from 0.59 in 2020 to 0.69 in 2024, followed by a slight decrease to 0.67 in 2025, indicating a modest improvement in asset utilization over time. When adjusted for goodwill, the ratio is significantly higher and exhibits a clearer upward trend, rising from 0.88 in 2020 to a peak of 1.03 in 2022, then stabilizing around 1.01-1.02 in subsequent years. This suggests that excluding goodwill provides a more efficient view of asset utilization that remained strong throughout the period.
Financial Leverage
The reported financial leverage ratios remain relatively stable, fluctuating slightly between 2.59 in 2020 and 2.41 in 2025. This indicates a consistent approach to leverage, with a slight trend towards reduced debt usage relative to equity. Adjusted financial leverage, however, shows greater variability, starting at a high level of 12.21 in 2020, peaking at 14.37 in 2021, and then declining sharply to 8.07 by 2025. The sharp decrease after 2021 suggests notable changes in the adjusted equity or debt levels when goodwill is excluded, implying structural adjustments or asset revaluation impacts during this period.
Return on Equity (ROE)
Reported ROE exhibits an overall positive trajectory, increasing from 28% in 2020 to 31.64% in 2022 before slightly declining to 29.59% in 2024 and then rising again to 30.71% in 2025. This stability at a high level reflects consistent profitability relative to shareholder equity. The adjusted ROE figures are substantially higher, with considerable volatility: peaking at 262.3% in 2021, decreasing to 149.03% in 2024, and recovering modestly to 154.16% in 2025. The elevated and variable adjusted ROE indicates the substantial impact of excluding goodwill on profitability measures, likely reflecting smaller adjusted equity bases and magnified returns relative to those bases.
Return on Assets (ROA)
Reported ROA shows a steady increase from 10.79% in 2020 to 12.76% in 2025, indicating improving efficiency in using total assets to generate profit. The adjusted ROA also trends positively, rising from 16.12% in 2020 to around 19% in the latter years, with a slight dip in 2023 and 2024. The adjustment for goodwill yields consistently higher ROA values, suggesting that operational return on tangible assets remains strong and stable when intangible assets are excluded.

Overall, the analysis highlights that the company maintains solid operational efficiency and profitability, with improvements in asset utilization and steady returns. The goodwill adjustment notably magnifies returns and volatility in leverage and equity returns due to reduced equity base, emphasizing the importance of considering both reported and adjusted figures for a comprehensive assessment.


Procter & Gamble Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales
Total assets
Activity Ratio
Total asset turnover1
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales
Adjusted total assets
Activity Ratio
Adjusted total asset turnover2

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).

2025 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= ÷ =

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= ÷ =


The analysis of the financial data over the provided periods reveals several important trends in asset composition and efficiency metrics.

Total Assets
The reported total assets show a generally stable pattern with a slight decrease from 120,700 million US dollars in mid-2020 to 117,208 million in mid-2022, followed by a gradual recovery, reaching 125,231 million in mid-2025. This indicates a modest fluctuation with an overall upward trend in recent years.
Conversely, the adjusted total assets, which presumably exclude goodwill or certain intangible assets, demonstrate a steady decline from 80,799 million in mid-2020 to 77,508 million in mid-2022. Subsequently, there is a gradual increase observed, culminating at 83,581 million in mid-2025. Compared to the reported figures, the adjusted assets exhibit a narrower range of change, reflecting more consistency in net tangible or operational asset base.
Total Asset Turnover Ratios
The reported total asset turnover ratio exhibits an improving trend from 0.59 in mid-2020 to 0.69 in mid-2024, though a slight decline to 0.67 is noted in mid-2025. This indicates enhanced efficiency in generating revenue relative to total assets over most of the observed period, with marginal deceleration toward the end.
The adjusted total asset turnover ratio shows a consistently higher value than the reported ratio, starting at 0.88 in mid-2020 and increasing to a peak of 1.03 in mid-2022. Thereafter, it slightly stabilizes around 1.01 to 1.02 through mid-2025. This pattern suggests that when goodwill or other intangible assets are excluded, the company demonstrates improved utilization of its asset base in generating sales, maintaining strong operational efficiency through the years.

Overall, the data suggest that the company's asset base has remained relatively stable, with tangible assets showing more pronounced fluctuations but recovering towards the end of the period. Efficiency ratios reflect continuous improvement in asset utilization, particularly when adjusted for goodwill, indicating effective management of core assets in revenue generation. The marginal dip in total asset turnover in the latest period may warrant monitoring to ensure sustained operational effectiveness.


Adjusted Financial Leverage

Microsoft Excel
Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets
Shareholders’ equity attributable to Procter & Gamble
Solvency Ratio
Financial leverage1
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets
Adjusted shareholders’ equity attributable to Procter & Gamble
Solvency Ratio
Adjusted financial leverage2

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).

2025 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity attributable to Procter & Gamble
= ÷ =


The financial data presents two perspectives: reported figures and goodwill adjusted figures, spanning from June 30, 2020, to June 30, 2025. The analysis reveals several notable trends in assets, equity, and leverage ratios over the period.

Total Assets
Reported total assets show a slight decline from 120,700 million USD in 2020 to 117,208 million USD in 2022, followed by a gradual increase to 125,231 million USD by 2025. The adjusted total assets, which exclude goodwill and other adjustments, follow a similar pattern with a decrease from 80,799 million USD in 2020 to 77,508 million USD in 2022 and a subsequent rise to 83,581 million USD by 2025. This indicates a period of asset contraction followed by recovery and gradual growth.
Shareholders’ Equity Attributable to Procter & Gamble
The reported shareholders’ equity remains relatively stable from 46,521 million USD in 2020 through 46,589 million USD in 2022 and then increases steadily to reach 52,012 million USD in 2025. The adjusted shareholders’ equity demonstrates more volatility, falling from 6,620 million USD in 2020 to 5,454 million USD in 2021, rebounding somewhat in 2022, then fluctuating before rising notably to 10,362 million USD in 2025. This suggests underlying fluctuations in adjustments such as goodwill impairments or revaluations impacting the equity figures.
Financial Leverage
The reported financial leverage ratio decreases gradually from 2.59 in 2020 to 2.41 in 2025, indicating a slight reduction in the use of debt relative to equity over time. Conversely, the adjusted financial leverage ratio shows considerable variation, starting very high at 12.21 in 2020, peaking at 14.37 in 2021, and then mostly declining to 8.07 in 2025. This suggests that after accounting for adjustments such as goodwill, the company’s leverage is considerably higher and more variable, possibly reflecting changes in goodwill valuation affecting equity and hence leverage.

Overall, the reported financial data depict a stable to modestly improving financial position with gradual asset growth, steady equity increases, and a slight decline in leverage over the reviewed period. The adjusted data, influenced by goodwill and other adjustments, reveal greater volatility, particularly in equity and leverage, highlighting the impact of intangible asset accounting on the company’s financial leverage presentation.


Adjusted Return on Equity (ROE)

Microsoft Excel
Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)
Shareholders’ equity attributable to Procter & Gamble
Profitability Ratio
ROE1
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)
Adjusted shareholders’ equity attributable to Procter & Gamble
Profitability Ratio
Adjusted ROE2

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).

2025 Calculations

1 ROE = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × ÷ =

2 Adjusted ROE = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Adjusted shareholders’ equity attributable to Procter & Gamble
= 100 × ÷ =


Shareholders’ Equity Trends
The reported shareholders’ equity attributable to Procter & Gamble showed relative stability from June 30, 2020, through June 30, 2023, fluctuating slightly between approximately $46.38 billion and $46.78 billion. Beginning June 30, 2024, there was a notable increase, with equity rising to about $50.29 billion and further to $52.01 billion by June 30, 2025. In contrast, the adjusted shareholders’ equity presented more volatility over the same period. Starting at $6.62 billion in 2020, it dropped to $5.45 billion in 2021, then increased to $6.89 billion in 2022 before declining again in 2023. A significant rise occurred in 2024 and 2025, reaching $9.98 billion and $10.36 billion, respectively. This pattern suggests adjustments related to goodwill had a pronounced effect on the equity figures.
Return on Equity (ROE) Analysis
The reported ROE maintained a relatively consistent upward trend from 28% in 2020, peaking around 31.64% in 2022, followed by a slight decline to 29.59% in 2024, and then a modest recovery to 30.71% in 2025. This indicates that reported profitability relative to reported equity remained strong and stable over the years. Contrastingly, the adjusted ROE exhibited significantly higher values and greater volatility, beginning at an exceptionally high 196.78% in 2020, rising sharply to 262.3% in 2021, thereafter experiencing fluctuations with a downward trend to 149.03% in 2024, and a slight increase to 154.16% in 2025. These elevated percentages reflect the impact of reduced adjusted equity values on ROE calculation, underscoring the sensitivity of this adjusted metric to changes in the equity base after goodwill adjustments.
Overall Insights
The stability of reported shareholders’ equity alongside a consistently strong reported ROE suggests a steady financial performance when viewed through traditional accounting metrics. However, the adjusted figures, which take goodwill into account, reveal greater variability in equity and significantly inflated ROE metrics. This highlights the importance of considering goodwill adjustments for a more nuanced view of the company’s financial health. The increase in both reported and adjusted equity in the later years implies possible strategic initiatives or successful operational results contributing to an enhanced equity base.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)
Total assets
Profitability Ratio
ROA1
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)
Adjusted total assets
Profitability Ratio
Adjusted ROA2

Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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).

2025 Calculations

1 ROA = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Total assets
= 100 × ÷ =

2 Adjusted ROA = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Adjusted total assets
= 100 × ÷ =


The financial data reveals several notable trends and patterns concerning total assets and return on assets (ROA), both reported and goodwill adjusted, over the examined periods.

Total Assets
Reported total assets depicted a slight decline from US$120,700 million in mid-2020 to US$117,208 million in mid-2022, after which there was a moderate recovery, reaching US$125,231 million by mid-2025. This fluctuation indicates a period of asset base contraction followed by stabilization and growth.
Adjusted total assets, which exclude goodwill or intangible asset adjustments, similarly decreased from US$80,799 million at June 2020 to US$77,508 million by June 2022. This was followed by a gradual increase through to US$83,581 million in June 2025, mirroring the recovered pattern seen in the reported figures but on a smaller scale reflective of the goodwill adjustment.
Return on Assets (ROA)
The reported ROA showed a generally positive trend with an increase from 10.79% in 2020 to 12.58% in 2022, despite a minor dip to 12.13% in 2023. After 2023, the ROA stabilized and improved slightly, reaching 12.76% in 2025, indicating steady profitability relative to the asset base.
Adjusted ROA, calculated on the goodwill-adjusted asset base, was consistently higher than the reported ROA throughout the period. It rose from 16.12% in 2020 to 19.02% in 2022, followed by a small decline to 18.28% in 2023 and a relatively stable performance thereafter, concluding at 19.11% in 2025. This higher adjusted ROA signals stronger asset efficiency when intangible asset effects are removed.

Overall, the data reflects a company experiencing a mild contraction in asset size until 2022, after which asset levels recover and expand moderately. Profitability metrics demonstrate improved effectiveness in asset utilization over the entire period, with asset adjustments further emphasizing operational efficiency gains. The steadiness in both ROA measures post-2022 suggests a stable financial performance environment.