Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Procter & Gamble Co., consolidated cash flow statement

US$ in millions

12 months ended:	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net earnings	16,065)	14,974)	14,738)	14,793)	14,352)	13,103)
Depreciation and amortization	2,847)	2,896)	2,714)	2,807)	2,735)	3,013)
Loss on early extinguishment of debt	—)	—)	—)	—)	512)	—)
Share-based compensation expense	476)	562)	545)	528)	540)	558)
Deferred income taxes	149)	(244)	(453)	(402)	(258)	(596)
(Gain) loss on sale of assets	755)	(215)	(40)	(85)	(16)	7)
Indefinite-lived intangible impairment charge	—)	1,341)	—)	—)	—)	—)
Change in accounts receivable	45)	(766)	(307)	(694)	(342)	634)
Change in inventories	(324)	(70)	(119)	(1,247)	(309)	(637)
Change in accounts payable	(542)	878)	(447)	1,429)	1,391)	1,923)
Change in operating assets and liabilities	(821)	42)	(873)	(512)	740)	1,920)
Other	(1,654)	490)	217)	(406)	(234)	(602)
Operating activities	17,817)	19,846)	16,848)	16,723)	18,371)	17,403)
Capital expenditures	(3,773)	(3,322)	(3,062)	(3,156)	(2,787)	(3,073)
Proceeds from asset sales	107)	346)	46)	110)	42)	30)
Acquisitions, net of cash acquired	(11)	(21)	(765)	(1,381)	(34)	(58)
Other investing activity	(141)	(507)	281)	3)	(55)	6,146)
Investing activities	(3,818)	(3,504)	(3,500)	(4,424)	(2,834)	3,045)
Dividends to shareholders	(9,872)	(9,312)	(8,999)	(8,770)	(8,263)	(7,789)
Additions to short-term debt with original maturities of more than three months	8,020)	3,528)	17,168)	10,411)	7,675)	14,371)
Reductions in short-term debt with original maturities of more than three months	(6,512)	(7,689)	(13,031)	(11,478)	(7,577)	(12,984)
Net additions (reductions) in other short-term debt	(1,138)	857)	(3,319)	917)	(3,431)	958)
Additions to long-term debt	2,237)	3,197)	3,997)	4,385)	4,417)	4,951)
Reductions of long-term debt	(1,977)	(2,335)	(1,878)	(2,343)	(4,987)	(2,447)
Treasury stock purchases	(6,500)	(5,006)	(7,353)	(10,003)	(11,009)	(7,405)
Impact of stock options and other	1,706)	1,905)	1,269)	2,005)	1,644)	1,978)
Financing activities	(14,036)	(14,855)	(12,146)	(14,876)	(21,531)	(8,367)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	112)	(252)	(170)	(497)	101)	(139)
Change in cash, cash equivalents and restricted cash	75)	1,235)	1,032)	(3,074)	(5,893)	11,942)
Cash, cash equivalents and restricted cash, beginning of year	9,482)	8,246)	7,214)	10,288)	16,181)	4,239)
Cash, cash equivalents and restricted cash, end of year	9,557)	9,481)	8,246)	7,214)	10,288)	16,181)

Based on: 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), 10-K (reporting date: 2020-06-30).

Net Earnings

Net earnings showed a generally upward trend from 13,103 million USD in 2020 to 16,065 million USD in 2025, with minor fluctuations around 2023 and 2024.

Depreciation and Amortization

Depreciation and amortization expenses remained relatively stable, fluctuating slightly between approximately 2,700 and 3,000 million USD over the six-year period.

Loss on Early Extinguishment of Debt

This loss was recorded only once in 2021 at 512 million USD, with no reported losses before or after that year.

Share-based Compensation Expense

Share-based compensation expenses showed a slight decline from 558 million USD in 2020 to 476 million USD in 2025, exhibiting minor yearly variations.

Deferred Income Taxes

Deferred income taxes experienced fluctuations, starting as a negative balance of -596 million USD in 2020, moving towards positive territory with a recorded 149 million USD in 2025, indicating changing tax positions over the years.

(Gain) Loss on Sale of Assets

The company shifted from minor gains and losses in previous years to a significant loss of 755 million USD in 2025, following a large gain of -215 million USD in 2024, reflecting volatility in asset sales results.

Indefinite-lived Intangible Impairment Charge

There was a notable impairment charge of 1,341 million USD recorded in 2024, with no such charges reported in other years, indicating a significant write-down during that year.

Changes in Working Capital

Accounts receivable showed a shift from positive changes in 2020 to mostly negative changes in subsequent years, with slight recovery in 2025.

Inventories generally decreased throughout the period, with the largest negative change in 2022.

Accounts payable exhibited positive changes early in the period with a sharp decline in 2023 and volatility thereafter.

The overall change in operating assets and liabilities reflected these patterns, moving from positive in 2020 and 2021 to negative in 2022 and 2023, with slight improvement later.

Other Operating Activities

Other operating activities fluctuated significantly, ranging from negative values in 2020, 2021, and 2025 to positive values notably in 2023 and 2024.

Operating Activities Cash Flow

Cash generated from operating activities varied between approximately 16,700 million USD and 19,800 million USD, peaking in 2024 and showing a slight decline in 2025.

Capital Expenditures

Capital expenditures steadily increased from 3,073 million USD in 2020 to 3,773 million USD in 2025, indicating escalating investment in fixed assets.

Proceeds from Asset Sales

Proceeds were generally low but saw a significant increase in 2024 at 346 million USD before declining in 2025.

Acquisitions, Net of Cash Acquired

Acquisition activities spiked in 2022 with a significant cash outflow of 1,381 million USD, with much smaller values in other years.

Other Investing Activity

Other investing activities were highly variable, peaking positively in 2020 and swinging between minor positive and negative values thereafter.

Investing Activities Cash Flow

Investing activities resulted in net outflows from 2021 onward, progressively increasing in magnitude, reaching a peak of -3,818 million USD in 2025 after a positive inflow in 2020.

Dividends to Shareholders

Dividends increased steadily from approximately 7,789 million USD in 2020 to 9,872 million USD in 2025, reflecting consistent shareholder returns.

Debt Activities

Short-term debt additions and reductions fluctuated considerably, with large increases in 2023 and significant reductions throughout the period, especially in 2023.

Net changes in other short-term debt showed volatility without a clear trend.

Additions to long-term debt decreased steadily from 4,951 million USD in 2020 to 2,237 million USD in 2025.

Reductions of long-term debt also diminished over time but remained substantial.

Treasury Stock Purchases

Treasury stock purchases declined from a peak of 11,009 million USD in 2021 to 6,500 million USD in 2025, indicating a reduction in buyback intensity.

Impact of Stock Options and Other

This category fluctuated moderately but generally remained positive, suggesting continuous effects from stock-based compensation and related transactions.

Financing Activities Cash Flow

Net cash outflows from financing activities showed a peak negative of -21,531 million USD in 2021, followed by lower but still substantial outflows in subsequent years.

Effect of Exchange Rate Changes

The impact of exchange rate changes on cash fluctuated, showing minor negative and positive effects, with no sustained trend.

Cash Position

Cash and cash equivalents showed volatility, increasing significantly in 2020, decreasing in the following two years, then gradually recovering through 2025 with a modest net increase overall.

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Procter & Gamble Co. (NYSE:PG)

Cash Flow Statement