Stock Analysis on Net
Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Procter & Gamble Co., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Jun 30, 2026 Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Accounts payable 12.89 12.16 12.56 12.08 12.70 11.50
Accrued marketing and promotion 3.27 3.08 3.41 3.22 3.31 3.47
Accrued compensation 1.61 1.60 1.77 1.68 1.53 1.80
Taxes payable 0.61 0.94 0.85 0.69 0.50 0.53
Restructuring reserves 0.27 0.15 0.14 0.14 0.13 0.23
Accrued interest 0.24 0.23 0.23 0.19 0.00 0.00
Current operating lease liabilities 0.19 0.20 0.20 0.18 0.17 0.18
Derivative liabilities 0.16 0.50 0.04 0.52 0.00 0.00
Other 2.40 2.33 2.41 2.41 2.51 2.60
Accrued and other liabilities 8.77% 9.04% 9.05% 9.05% 8.15% 8.82%
Debt due within one year 8.93 7.60 5.88 8.47 7.38 7.45
Current liabilities 30.58% 28.79% 27.48% 29.59% 28.22% 27.77%
Long-term debt, excluding due within one year 18.05 19.96 20.65 20.18 19.49 19.36
Deferred income taxes 4.55 4.61 5.32 5.36 5.81 5.16
Pension benefit obligations 1.74 2.42 2.36 2.58 2.68 4.57
Other retiree benefit obligations 0.58 0.55 0.53 0.57 0.57 0.77
Uncertain tax positions 0.52 0.56 0.59 0.51 0.64 0.67
Noncurrent operating lease liabilities 0.51 0.56 0.54 0.49 0.51 0.53
Derivative liabilities 0.15 0.35 0.27 0.37 0.26 0.00
2017 U.S. Tax Act transitional tax payable 0.00 0.00 0.48 0.96 1.42 1.58
Other 0.38 0.45 0.45 0.44 0.42 0.49
Other noncurrent liabilities 3.88% 4.89% 5.23% 5.92% 6.50% 8.61%
Noncurrent liabilities 26.49% 29.46% 31.20% 31.46% 31.80% 33.13%
Total liabilities 57.07% 58.25% 58.68% 61.05% 60.02% 60.90%
Convertible Class A preferred stock, stated value $1 per share 0.60 0.62 0.65 0.68 0.72 0.73
Non-Voting Class B preferred stock, stated value $1 per share 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, stated value $1 per share 3.17 3.20 3.28 3.32 3.42 3.36
Additional paid-in capital 54.96 54.91 55.31 55.08 56.14 54.35
Reserve for ESOP debt retirement -0.47 -0.54 -0.60 -0.68 -0.78 -0.84
Accumulated other comprehensive loss -9.85 -9.70 -9.72 -10.11 -10.40 -11.52
Treasury stock -113.03 -110.76 -109.00 -107.37 -105.27 -96.37
Retained earnings 107.38 103.79 101.18 97.80 95.92 89.16
Shareholders’ equity attributable to Procter & Gamble 42.74% 41.53% 41.09% 38.71% 39.75% 38.87%
Noncontrolling interest 0.18 0.22 0.22 0.24 0.23 0.23
Total shareholders’ equity 42.93% 41.75% 41.32% 38.95% 39.98% 39.10%
Total liabilities and shareholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

An analysis of the common-size balance sheet reveals a strategic shift in the capital structure, characterized by a gradual reduction in total liabilities and a corresponding increase in total shareholders' equity. Total liabilities declined from 60.90% in 2021 to 57.07% by 2026, while total shareholders' equity rose from 39.10% to 42.93% over the same period. This trend indicates a strengthening of the company's solvency position and a decrease in overall leverage.

Current Liabilities Trends
Current liabilities exhibited a slight upward trajectory, moving from 27.77% in 2021 to 30.58% in 2026. This increase is primarily driven by fluctuations in accounts payable, which remained a significant component, peaking at 12.89% in 2026. Debt due within one year showed volatility, reaching a low of 5.88% in 2024 before climbing to 8.93% in 2026, suggesting periodic shifts in short-term financing strategies.
Noncurrent Liabilities Reduction
A notable contraction is observed in noncurrent liabilities, which fell from 33.13% in 2021 to 26.49% in 2026. This decline is attributed to several factors: pension benefit obligations decreased significantly from 4.57% to 1.74%, and the 2017 U.S. Tax Act transitional tax payable was phased out entirely by 2025. Long-term debt, excluding current portions, remained relatively stable but ended the period lower at 18.05%, compared to 19.36% in 2021.
Equity Component Dynamics
The equity section is defined by a strong divergence between retained earnings and treasury stock. Retained earnings grew substantially from 89.16% to 107.38% of total liabilities and equity, reflecting consistent profitability. Simultaneously, treasury stock increased in negative magnitude from -96.37% to -113.03%, indicating an aggressive and sustained program of share repurchases. These two offsetting movements suggest a strategy of returning significant value to shareholders while maintaining a robust internal capital base.
Other Liability Observations
Accrued and other liabilities remained relatively stable, fluctuating between 8.15% and 9.05%. Other noncurrent liabilities saw a steady decline from 8.61% in 2021 to 3.88% in 2026, further contributing to the overall reduction in the company's long-term liability profile.

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