Analysis of Property, Plant and Equipment
Paying user area
Try for free
Procter & Gamble Co. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Procter & Gamble Co. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Property, Plant and Equipment Disclosure
Procter & Gamble Co., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2026-06-30), 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).
Gross property, plant and equipment shows a consistent upward trajectory from 2022 through 2026, indicating a strategic expansion of the physical asset base. While gross assets remained nearly stagnant between 2021 and 2022, there is a marked acceleration in investment starting in 2023, with total gross value increasing from 46,698 million USD in 2021 to 57,172 million USD by 2026.
- Machinery and Equipment
- As the primary driver of asset growth, machinery and equipment increased from 35,367 million USD in 2021 to 42,001 million USD by 2026. This represents a steady commitment to enhancing production capacity and operational technology.
- Construction in Progress
- A significant upward trend is observed in construction in progress, which rose from 2,358 million USD in 2021 to 4,448 million USD in 2026. This substantial increase suggests an intensification of capital projects and future capacity expansions that are yet to be fully commissioned.
- Buildings and Land
- Buildings exhibited steady growth, rising from 8,165 million USD to 9,760 million USD over the analyzed period. Land holdings remained relatively stable, ending at 963 million USD in 2026 compared to 808 million USD in 2021.
- Accumulated Depreciation
- Accumulated depreciation grew steadily from 25,012 million USD in 2021 to 31,812 million USD in 2026. This growth is consistent with the expansion of the gross asset base and the natural aging of existing equipment.
The net book value of property, plant and equipment experienced a slight contraction in 2022 before entering a period of sustained growth, reaching 25,360 million USD by 2026. The recovery and subsequent increase in net assets indicate that capital expenditures have begun to outpace annual depreciation charges. The simultaneous rise in machinery and construction in progress points toward a proactive strategy to modernize infrastructure and scale operational output.
Asset Age Ratios (Summary)
Procter & Gamble Co., asset age ratios
Based on: 10-K (reporting date: 2026-06-30), 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).
The average age ratio of property, plant, and equipment demonstrates a consistent upward trend for the majority of the analyzed period, reflecting a gradual increase in the relative age of the fixed asset base.
- Asset Aging Progression (2021–2025)
- From June 30, 2021, to June 30, 2025, the average age ratio rose steadily from 54.50% to a peak of 56.92%. This incremental growth suggests that accumulated depreciation increased relative to the gross value of assets, indicating that the replacement of aging equipment did not keep pace with the rate of depreciation during this interval.
- Correction Phase (2026)
- A marginal decline to 56.60% was observed as of June 30, 2026. This shift suggests a potential increase in capital expenditures or the disposal of older assets, which served to slightly reduce the average age of the asset portfolio after four years of continuous growth.
Average Age
Based on: 10-K (reporting date: 2026-06-30), 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).
2026 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × ÷ ( – ) =
Analysis of the fixed asset base indicates a sustained expansion of gross property, plant, and equipment alongside a consistent rise in accumulated depreciation over the observed period.
- Gross Asset Growth
- The gross value of property, plant, and equipment increased from 46,698 million US$ in 2021 to 57,172 million US$ by 2026. This trajectory reflects continuous capital investment, with the most pronounced growth occurring between 2024 and 2026, suggesting an acceleration in the acquisition of new productive assets.
- Accumulated Depreciation Trends
- Accumulated depreciation rose steadily from 25,012 million US$ in 2021 to 31,812 million US$ in 2026. This consistent increase is aligned with the systematic consumption of the useful life of the company's operational assets.
- Average Age Ratio Interpretation
- The average age ratio climbed from 54.50% in 2021 to a peak of 56.92% in 2025, indicating that the asset base was aging as depreciation accumulated faster than new investments were added. A reversal of this trend is observed in 2026, where the ratio declined to 56.60%. This reduction correlates with a significant increase in gross property, plant, and equipment, suggesting that recent capital expenditures have begun to lower the overall average age of the asset portfolio.
- Land Holding Stability
- Land valuations remained relatively stable, moving from 808 million US$ in 2021 to 963 million US$ in 2026. The limited volatility and small proportion of land relative to total gross assets indicate that the primary drivers of investment and depreciation are centered on depreciable plant and equipment rather than real estate acquisition.