Common-Size Balance Sheet: Assets
Procter & Gamble Co., common-size consolidated balance sheet: assets
Based on: 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), 10-K (reporting date: 2019-06-30).
The analysis of the annual asset composition reveals several notable trends in the structure of the company's total assets over the six-year period ending June 30, 2024.
- Cash and cash equivalents
- There was a marked increase from 3.68% in 2019 to a peak of 13.41% in 2020, suggesting a significantly stronger liquidity position that year. Subsequently, this ratio decreased to around 6-7% and has been gradually rising since 2022, reaching 7.75% in 2024. This indicates a stabilization of cash holdings at a higher level than the initial 2019 figure.
- Available-for-sale investment securities
- Data is only present for 2019 where these securities accounted for 5.25% of total assets. No values are reported for subsequent years, implying either disposal of these securities or reclassification in financial reporting.
- Accounts receivable
- This asset showed a slight downward trend from 4.3% in 2019 to 3.46% in 2020, but then a gradual increase through 2024, reaching 5.0%. This upward trend post-2020 might suggest growing credit sales or longer collection periods.
- Inventories
- The inventory percentage of total assets rose steadily from 4.36% in 2019 to a peak of 5.91% in 2022, before modestly declining to 5.73% in 2024. This generally increasing trend may reflect expanded production or stockpiling strategies.
- Prepaid expenses and other current assets
- These assets remained relatively stable overall, fluctuating within a narrow range from 1.54% to 2.02%, with no clear upward or downward trend identified.
- Current assets
- The proportion of current assets to total assets peaked at 23.19% in 2020, coinciding with the peak in cash holdings, and then declined to around 18-20% in subsequent years. The current assets maintained a consistent share near 20% by 2024, revealing a moderate but stable short-term asset base.
- Property, plant, and equipment, net
- The net property, plant, and equipment asset base remained relatively stable throughout the period, fluctuating slightly around 18%, which suggests stable investment or depreciation rates.
- Goodwill
- Goodwill accounted for a significant proportion of total assets, moving moderately downward from 34.99% in 2019 to 32.94% in 2024. This slight decline may indicate impairment charges, disposals, or a slower pace of acquisitions.
- Trademarks and other intangible assets, net
- The percentage of trademarks and intangible assets has shown a gradual decrease from 21.04% in 2019 to 18.02% in 2024, signaling either amortization, impairment, or less investment in new intangibles.
- Other noncurrent assets
- Other noncurrent assets experienced a steady increase from 5.96% in 2019 to 10.75% in 2024, representing a significant shift in asset composition likely due to additional long-term investments or reclassifications.
- Noncurrent assets
- Noncurrent assets as a whole remained the dominant portion of total assets, accounting for about 80% on average, though dipping to a low of 76.81% in 2020 and trending slightly down to 79.81% by 2024. This reflects a consistently asset-heavy capital structure favoring long-term investments.
- Total assets
- By definition, total assets sum to 100% across all years, providing the baseline for these proportional analyses.
Overall, the asset structure exhibits a stable long-term asset investment focus with some variability in liquidity and receivable positions. The decline in goodwill and intangible asset percentages alongside the rise in other noncurrent assets suggests strategic shifts in asset composition and possibly underlying business priorities.