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Procter & Gamble Co. (NYSE:PG)

Common-Size Income Statement

Procter & Gamble Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Jun 30, 2026 Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold -49.82 -48.84 -48.61 -52.14 -52.57 -48.75
Gross profit 50.18% 51.16% 51.39% 47.86% 47.43% 51.25%
Selling, general and administrative expense -27.49 -26.90 -27.73 -25.74 -25.21 -27.62
Indefinite-lived intangible asset impairment charge 0.00 0.00 -1.60 0.00 0.00 0.00
Operating income 22.69% 24.26% 22.07% 22.11% 22.21% 23.63%
Interest expense -1.01 -1.08 -1.10 -0.92 -0.55 -0.66
Interest income 0.49 0.56 0.56 0.37 0.06 0.06
Other non-operating income (expense), net 1.24 0.18 0.79 0.81 0.71 0.11
Earnings before income taxes 23.41% 23.93% 22.32% 22.38% 22.44% 23.14%
Income taxes -4.86 -4.87 -4.51 -4.41 -3.99 -4.29
Net earnings 18.55% 19.06% 17.82% 17.97% 18.45% 18.85%
Net earnings attributable to noncontrolling interests -0.11 -0.11 -0.11 -0.10 -0.06 -0.06
Net earnings attributable to Procter & Gamble (P&G) 18.44% 18.95% 17.70% 17.87% 18.38% 18.79%
Preferred dividends -0.34 -0.35 -0.34 -0.34 -0.35 -0.36
Net earnings attributable to P&G available to common shareholders 18.10% 18.61% 17.37% 17.52% 18.03% 18.44%

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 common-size income statement reveals a period of relative stability in profitability margins, characterized by a temporary contraction in gross margins followed by a recovery. Overall operational efficiency remains consistent, with net earnings attributable to common shareholders fluctuating within a narrow range of approximately 1.3 percentage points over the six-year period.

Gross Profitability and Cost Management
A significant increase in the cost of products sold was observed in 2022, rising to 52.57% of net sales and reducing the gross profit margin to 47.43%. However, a recovery trend followed, with gross margins returning to 51.39% by 2024. By 2026, the cost of products sold stabilized near 49.82%, indicating a successful mitigation of the cost pressures experienced in the earlier period.
Operating Expense Trends
Selling, general, and administrative expenses have remained largely stable, typically fluctuating between 25% and 28% of net sales. A notable non-recurring event occurred in 2024, where an indefinite-lived intangible asset impairment charge of 1.60% of net sales was recorded. Despite this charge, operating income remained resilient, peaking at 24.26% in 2025 before settling at 22.69% in 2026.
Non-Operating Items and Tax Impact
Interest expenses as a percentage of net sales showed a gradual upward trend, increasing from 0.66% in 2021 to a peak of 1.10% in 2024, before stabilizing around 1.01% in 2026. This was partially offset by a modest increase in interest income. Income taxes have remained consistent as a percentage of sales, ranging from 3.99% to 4.87%.
Net Earnings Analysis
The net earnings attributable to common shareholders demonstrate high stability. After a slight decline from 18.44% in 2021 to a low of 17.37% in 2024, the margin rebounded to 18.61% in 2025. The final reported figure for 2026 indicates a net margin of 18.10%, suggesting that the organization maintains a consistent ability to convert sales into bottom-line profit despite fluctuations in production costs and one-time impairment charges.

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