Procter & Gamble Co. (NYSE:PG)

The analysis of the financial data shows several notable trends and patterns across the reported periods.

Net Sales

There is a consistent upward trend in net sales, increasing steadily from 67,684 million US dollars in mid-2019 to 84,039 million US dollars by mid-2024. This represents sustained revenue growth over the six-year period.

Cost of Products Sold

Costs generally increased from 34,768 million US dollars in 2019 to a peak of 42,760 million US dollars in 2023, before decreasing to 40,848 million US dollars in 2024. This indicates fluctuations in cost control or input prices, with some recent improvement or cost reduction in 2024.

Gross Profit

Gross profit increased overall from 32,916 million US dollars in 2019 to 43,191 million US dollars in 2024, despite a dip in 2022. This reflects effective gross margin management alongside rising sales, with a recovery and improvement in 2024.

Selling, General and Administrative Expense (SG&A)

SG&A expenses rose steadily from 19,084 million US dollars in 2019 to 23,305 million US dollars in 2024. The increase suggests rising operational expenses that could impact profitability but may also reflect investments in growth or brand development.

Indefinite-Lived Intangible Asset Impairment Charge

There was a significant impairment charge of 8,345 million US dollars in 2019 and a smaller charge of 1,341 million US dollars in 2024, with no charges reported in the interim years. This indicates one-time or periodic assessments impacting net income notably in those years.

Operating Income

Operating income saw strong growth from 5,487 million US dollars in 2019 to a peak exceeding 18,500 million US dollars in 2024, with a steady increase from 2020 onwards. This suggests improved operational efficiency and profitability.

Interest Expense and Interest Income

Interest expense decreased from 509 million US dollars in 2019 to a low of 439 million in 2022, but then increased substantially to 925 million in 2024, indicating potential changes in debt levels or interest rates. Interest income declined sharply to 45 million in 2021 but recovered significantly to 473 million in 2024, possibly reflecting better investment returns or higher cash balances.

Other Non-Operating Income (Expense), Net

This item declined from 871 million US dollars in 2019 to 86 million in 2021, then improved to a stable 668 million in 2023 and 2024, indicating variability in ancillary income or expenses over the periods.

Earnings Before Income Taxes (EBIT)

EBIT increased markedly from 6,069 million US dollars in 2019 to 18,761 million US dollars in 2024, reflecting higher operating profits combined with improved non-operating results despite fluctuations in interest costs.

Income Taxes

Income tax expenses rose from 2,103 million US dollars in 2019 to 3,787 million US dollars in 2024, consistent with increasing pre-tax earnings, indicating a stable effective tax burden relative to earnings.

Net Earnings

Net earnings attributable to P&G available to common shareholders grew steadily from 3,634 million US dollars in 2019 to 14,595 million US dollars in 2024, showing a strong and consistent improvement in profitability after preferred dividends and noncontrolling interests.

In summary, the data reveals consistent revenue growth and improving profitability over the six-year span, notwithstanding some irregular impairment charges and increased operational expenses. The increase in operating income and net earnings underscores enhanced performance, while fluctuations in interest expenses and other non-operating items suggest shifts in financing structure and ancillary activities. Cost management exhibits mixed results, with cost of goods peaking and then declining in the most recent year, and SG&A costs steadily rising. Overall, the company demonstrates strong financial health and positive earnings momentum.