Common-Size Income Statement
Procter & Gamble Co., common-size consolidated income statement
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).
- Gross Profit Trend
- Gross profit as a percentage of net sales showed an overall increase over the six-year period, rising from 48.63% in 2019 to 51.39% in 2024. Notably, it peaked at 51.25% in 2021 before experiencing a decline during 2022 and 2023, and then improving again in 2024. This indicates improved cost efficiency in production or pricing power after some volatility.
- Cost of Products Sold
- The cost of products sold consistently ranged between approximately 48.61% and 52.57% of net sales. A decreasing trend is observed from the high of 52.57% in 2022 to 48.61% in 2024, suggesting a reduction in cost relative to sales in the most recent years, contributing positively to gross margin expansion.
- Selling, General and Administrative Expenses (SG&A)
- SG&A expenses decreased as a percentage of net sales from 28.20% in 2019 to a low of 25.21% in 2022, indicating enhanced operational efficiency or cost control during this period. However, there was a rebound to 27.73% in 2024, pointing to a possible increase in administrative or selling costs more recently.
- Indefinite-lived Intangible Asset Impairment Charge
- This non-recurring charge was significant in 2019 at -12.33% of net sales but was absent from 2020 through 2023. A smaller impairment charge reappeared in 2024 at -1.6%, suggesting an occasional write-down affecting profitability in these years.
- Operating Income
- Operating income experienced a strong rise from 8.11% in 2019 to over 22% from 2020 onward, maintaining a relatively stable level around 22% in the subsequent years. This substantial improvement reflects increased profitability from core operations and better expense management despite fluctuations in other cost areas.
- Interest Expense and Interest Income
- Interest expense as a percentage of net sales slightly decreased from 0.75% in 2019 to 0.55% in 2022, before rising to 1.10% in 2024. Conversely, interest income was low and declining initially but rebounded in 2023 and 2024, reaching 0.56%. The net effect suggests some variability in financing costs and investment returns over time.
- Other Non-operating Income (Expense), Net
- This item decreased from 1.29% in 2019 to a low of 0.11% in 2021, then increased to roughly 0.80% in later years. This suggests fluctuations in other income or expenses unrelated to core operations, impacting overall profitability.
- Earnings Before Income Taxes (EBIT)
- EBIT followed a trajectory similar to operating income, rising sharply from 8.97% in 2019 to above 22% in subsequent years, maintaining stability around 22%. This indicates the company's ability to generate consistent earnings before tax despite varying non-operational factors.
- Income Taxes
- The proportion of income taxes relative to net sales fluctuated between approximately 3.11% and 4.51%. A slight upward trend is noted toward the later years, which may reflect changes in tax rates or taxable income composition.
- Net Earnings
- Net earnings as a percentage of net sales surged from 5.86% in 2019 to a peak of 18.85% in 2021, followed by a modest decline to around 17.82% in 2024. This overall improvement highlights enhanced net profitability, although some erosion occurred after 2021.
- Net Earnings Attributable to Noncontrolling Interests and Preferred Dividends
- Both noncontrolling interests and preferred dividends remained relatively stable as a percentage of net sales, with noncontrolling interests around -0.1% and preferred dividends around -0.34% to -0.39%. These minor and stable allocations imply limited impact on earnings available to common shareholders.
- Net Earnings Attributable to P&G Available to Common Shareholders
- This key profitability measure increased considerably from 5.37% in 2019 to a high of 18.44% in 2021, then slightly declined to 17.37% in 2024. The data demonstrate significant improvement in earnings available to shareholders over the period, with a plateau in recent years.