Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

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

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Goodwill	40,659)	39,700)	40,924)	39,901)	40,273)	45,175)
Brands	4,352)	4,299)	3,908)	3,820)	3,836)	3,146)
Patents and technology	2,775)	2,769)	2,781)	2,776)	2,776)	2,617)
Customer relationships	1,847)	1,797)	1,789)	1,752)	1,787)	1,372)
Other	73)	147)	150)	143)	145)	241)
Intangible assets with determinable lives, gross carrying amount	9,047)	9,012)	8,628)	8,491)	8,544)	7,376)
Accumulated amortization	(6,256)	(6,273)	(6,100)	(5,730)	(5,376)	(5,156)
Intangible assets with determinable lives, net	2,791)	2,739)	2,528)	2,761)	3,168)	2,220)
Brands	20,992)	20,940)	21,114)	21,031)	21,047)	21,682)
Intangible assets with indefinite lives	20,992)	20,940)	21,114)	21,031)	21,047)	21,682)
Identifiable intangible assets	23,783)	23,679)	23,642)	23,792)	24,215)	23,902)
Goodwill and intangible assets	64,442)	63,379)	64,566)	63,693)	64,488)	69,077)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Procter & Gamble Co. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Identifiable intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Procter & Gamble Co. identifiable intangible assets increased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Procter & Gamble Co. goodwill and intangible assets decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Procter & Gamble Co., adjustments to financial statements

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Adjustment to Total Assets
Total assets (as reported)	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Less: Goodwill	40,659)	39,700)	40,924)	39,901)	40,273)	45,175)
Total assets (adjusted)	80,170)	77,508)	78,383)	80,799)	74,822)	73,135)
Adjustment to Shareholders’ Equity Attributable To Procter & Gamble
Shareholders’ equity attributable to Procter & Gamble (as reported)	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Less: Goodwill	40,659)	39,700)	40,924)	39,901)	40,273)	45,175)
Shareholders’ equity attributable to Procter & Gamble (adjusted)	6,118)	6,889)	5,454)	6,620)	6,921)	7,118)
Adjustment to Net Earnings Attributable To Procter & Gamble (P&G)
Net earnings attributable to Procter & Gamble (P&G) (as reported)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Add: Goodwill impairment charges	—)	—)	—)	—)	6,783)	—)
Net earnings attributable to Procter & Gamble (P&G) (adjusted)	14,653)	14,742)	14,306)	13,027)	10,680)	9,750)

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).

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

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Procter & Gamble Co., adjusted financial ratios

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Net Profit Margin
Reported net profit margin	17.87%	18.38%	18.79%	18.36%	5.76%	14.59%
Adjusted net profit margin	17.87%	18.38%	18.79%	18.36%	15.78%	14.59%
Total Asset Turnover
Reported total asset turnover	0.68	0.68	0.64	0.59	0.59	0.56
Adjusted total asset turnover	1.02	1.03	0.97	0.88	0.90	0.91
Financial Leverage
Reported financial leverage	2.58	2.52	2.57	2.59	2.44	2.26
Adjusted financial leverage	13.10	11.25	14.37	12.21	10.81	10.27
Return on Equity (ROE)
Reported ROE	31.33%	31.64%	30.85%	28.00%	8.26%	18.64%
Adjusted ROE	239.51%	213.99%	262.30%	196.78%	154.31%	136.98%
Return on Assets (ROA)
Reported ROA	12.13%	12.58%	11.99%	10.79%	3.39%	8.24%
Adjusted ROA	18.28%	19.02%	18.25%	16.12%	14.27%	13.33%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Procter & Gamble Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Procter & Gamble Co. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Procter & Gamble Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Procter & Gamble Co. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Procter & Gamble Co. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

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

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	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
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%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	10,680)	9,750)
Net sales	82,006)	80,187)	76,118)	70,950)	67,684)	66,832)
Profitability Ratio
Adjusted net profit margin²	17.87%	18.38%	18.79%	18.36%	15.78%	14.59%

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).

2023 Calculations

¹ Net profit margin = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Net sales
= 100 × 14,653 ÷ 82,006 = 17.87%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to Procter & Gamble (P&G) ÷ Net sales
= 100 × 14,653 ÷ 82,006 = 17.87%

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

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales	82,006)	80,187)	76,118)	70,950)	67,684)	66,832)
Total assets	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Activity Ratio
Total asset turnover¹	0.68	0.68	0.64	0.59	0.59	0.56
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	82,006)	80,187)	76,118)	70,950)	67,684)	66,832)
Adjusted total assets	80,170)	77,508)	78,383)	80,799)	74,822)	73,135)
Activity Ratio
Adjusted total asset turnover²	1.02	1.03	0.97	0.88	0.90	0.91

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).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 82,006 ÷ 120,829 = 0.68

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 82,006 ÷ 80,170 = 1.02

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Procter & Gamble Co. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
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
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	80,170)	77,508)	78,383)	80,799)	74,822)	73,135)
Adjusted shareholders’ equity attributable to Procter & Gamble	6,118)	6,889)	5,454)	6,620)	6,921)	7,118)
Solvency Ratio
Adjusted financial leverage²	13.10	11.25	14.37	12.21	10.81	10.27

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).

2023 Calculations

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

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity attributable to Procter & Gamble
= 80,170 ÷ 6,118 = 13.10

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Procter & Gamble Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
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%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	10,680)	9,750)
Adjusted shareholders’ equity attributable to Procter & Gamble	6,118)	6,889)	5,454)	6,620)	6,921)	7,118)
Profitability Ratio
Adjusted ROE²	239.51%	213.99%	262.30%	196.78%	154.31%	136.98%

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).

2023 Calculations

¹ ROE = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × 14,653 ÷ 46,777 = 31.33%

² Adjusted ROE = 100 × Adjusted net earnings attributable to Procter & Gamble (P&G) ÷ Adjusted shareholders’ equity attributable to Procter & Gamble
= 100 × 14,653 ÷ 6,118 = 239.51%

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

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
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%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	10,680)	9,750)
Adjusted total assets	80,170)	77,508)	78,383)	80,799)	74,822)	73,135)
Profitability Ratio
Adjusted ROA²	18.28%	19.02%	18.25%	16.12%	14.27%	13.33%

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).

2023 Calculations

¹ ROA = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Total assets
= 100 × 14,653 ÷ 120,829 = 12.13%

² Adjusted ROA = 100 × Adjusted net earnings attributable to Procter & Gamble (P&G) ÷ Adjusted total assets
= 100 × 14,653 ÷ 80,170 = 18.28%

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

Procter & Gamble Co. (NYSE:PG)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

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

Adjusted Financial Ratios: Removal of Goodwill (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)