Procter & Gamble Co. (NYSE:PG)

Machinery and Equipment

The value of machinery and equipment has shown a generally upward trend over the observed period. Starting at 33,260 million US dollars in 2020, it increased steadily each year, reaching 40,077 million US dollars by 2025. This growth suggests ongoing investment in machinery and equipment, with a notable acceleration in the later years.

Buildings

Buildings have also experienced consistent growth. The value rose from 7,700 million US dollars in 2020 to 9,190 million US dollars in 2025. The year-on-year increases were moderate but stable, indicating gradual expansion or upgrading of building assets.

Construction in Progress

This category shows a clear upward trajectory throughout the period, starting at 2,034 million US dollars in 2020 and rising to 3,935 million US dollars in 2025. The consistent increase in construction in progress suggests ongoing capital projects, which may contribute to asset growth in subsequent years.

Land

Land values have increased modestly from 777 million US dollars in 2020 to 979 million US dollars in 2025. The pattern is relatively stable with incremental gains, reflecting either acquisitions or revaluations.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment shows a steady increase from 43,771 million US dollars in 2020 to 54,181 million US dollars in 2025. This growth primarily reflects additions in all asset categories, especially machinery, equipment, buildings, and construction in progress.

Accumulated Depreciation

Accumulated depreciation has increased in absolute terms from -23,079 million US dollars in 2020 to -30,284 million US dollars in 2025, representing the expected wear and usage of the assets. The consistent increase aligns with the rising gross asset base, indicating continuous asset utilization and aging.

Property, Plant and Equipment, Net

The net value after depreciation shows moderate growth, from 20,692 million US dollars in 2020 to 23,897 million US dollars in 2025. While the net increase is less pronounced compared to the gross increase, it reflects the balance between new investments and depreciation expenses. The net asset value reflects the company's sustained investment in maintaining and expanding its operational capacity.

The analysis of the average age ratio over the given periods indicates a consistent upward trend from June 30, 2020, to June 30, 2025.

Trend Description

The average age ratio increased steadily from 53.68% in 2020 to 56.92% in 2025, suggesting a gradual aging of the property, plant, and equipment assets over this time frame.

Yearly Changes

Each year shows incremental growth, with the ratio rising by approximately 0.8 to 1.0 percentage points annually. This indicates that the assets are being retained longer or replaced less frequently.

Implications

The increasing average age ratio might signal that the company is operating with older equipment, which could lead to higher maintenance costs or reduced operational efficiency if not managed properly. Conversely, it may also indicate efficient use of assets with longer service lives.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment has shown a generally increasing trend over the observed periods. Starting at US$43,771 million in June 2020, it grew to US$54,181 million by June 2025. This increase suggests ongoing investment in these assets over time, with some stabilization between June 2021 and June 2022, where the value remained almost unchanged.

Accumulated Depreciation

Accumulated depreciation has consistently increased from US$23,079 million in June 2020 to US$30,284 million in June 2025. This steady rise indicates continuous aging and usage of the plant and equipment, reflecting systematic allocation of asset costs over their useful lives. The gradual increase aligns with the growth in gross property, plant, and equipment values.

Land

The value of land holdings showed modest fluctuations, beginning at US$777 million in June 2020 and generally increasing to US$979 million by June 2025. Despite a slight dip in 2022, the overall trend is upward, indicating either acquisitions or revaluations contributing to land asset growth.

Average Age Ratio

The average age ratio of the assets has steadily increased from 53.68% in June 2020 to 56.92% by June 2025. This gradual rise suggests that the company's asset base is aging, which may imply higher maintenance costs or an approaching need for asset renewal. The steady progression reflects a slightly aging but stable asset portfolio over the period analyzed.