Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Income Statement 

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Procter & Gamble Co., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Net sales 84,039 82,006 80,187 76,118 70,950 67,684
Cost of products sold (40,848) (42,760) (42,157) (37,108) (35,250) (34,768)
Gross profit 43,191 39,246 38,030 39,010 35,700 32,916
Selling, general and administrative expense (23,305) (21,112) (20,217) (21,024) (19,994) (19,084)
Indefinite-lived intangible asset impairment charge (1,341) (8,345)
Operating income 18,545 18,134 17,813 17,986 15,706 5,487
Interest expense (925) (756) (439) (502) (465) (509)
Interest income 473 307 51 45 155 220
Other non-operating income (expense), net 668 668 570 86 438 871
Earnings before income taxes 18,761 18,353 17,995 17,615 15,834 6,069
Income taxes (3,787) (3,615) (3,202) (3,263) (2,731) (2,103)
Net earnings 14,974 14,738 14,793 14,352 13,103 3,966
Net earnings attributable to noncontrolling interests (95) (85) (51) (46) (76) (69)
Net earnings attributable to Procter & Gamble (P&G) 14,879 14,653 14,742 14,306 13,027 3,897
Preferred dividends (284) (282) (281) (271) (263) (263)
Net earnings attributable to P&G available to common shareholders 14,595 14,371 14,461 14,035 12,764 3,634

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 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.