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, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net earnings	16,144)	16,065)	14,974)	14,738)	14,793)	14,352)
Depreciation and amortization	3,160)	2,847)	2,896)	2,714)	2,807)	2,735)
Loss on early extinguishment of debt	—)	—)	—)	—)	—)	512)
Share-based compensation expense	524)	476)	562)	545)	528)	540)
Deferred income taxes	51)	149)	(244)	(453)	(402)	(258)
(Gain) loss on sale of assets	(351)	755)	(215)	(40)	(85)	(16)
Indefinite-lived intangible asset impairment charge	—)	—)	1,341)	—)	—)	—)
Change in accounts receivable	84)	45)	(766)	(307)	(694)	(342)
Change in inventories	(641)	(324)	(70)	(119)	(1,247)	(309)
Change in accounts payable	919)	(542)	878)	(447)	1,429)	1,391)
Change in operating assets and liabilities	362)	(821)	42)	(873)	(512)	740)
Other	(334)	(1,654)	490)	217)	(406)	(234)
Operating activities	19,556)	17,817)	19,846)	16,848)	16,723)	18,371)
Capital expenditures	(4,409)	(3,773)	(3,322)	(3,062)	(3,156)	(2,787)
Proceeds from asset sales	508)	107)	346)	46)	110)	42)
Acquisitions, net of cash acquired	(85)	(11)	(21)	(765)	(1,381)	(34)
Other investing activity	(638)	(141)	(507)	281)	3)	(55)
Investing activities	(4,624)	(3,818)	(3,504)	(3,500)	(4,424)	(2,834)
Dividends to shareholders	(10,232)	(9,872)	(9,312)	(8,999)	(8,770)	(8,263)
Additions to short-term debt with original maturities of more than three months	7,941)	8,020)	3,528)	17,168)	10,411)	7,675)
Reductions in short-term debt with original maturities of more than three months	(9,984)	(6,512)	(7,689)	(13,031)	(11,478)	(7,577)
Net additions (reductions) to other short-term debt	2,674)	(1,138)	857)	(3,319)	917)	(3,431)
Additions to long-term debt	2,652)	2,237)	3,197)	3,997)	4,385)	4,417)
Reductions of long-term debt	(3,390)	(1,977)	(2,335)	(1,878)	(2,343)	(4,987)
Treasury stock purchases	(5,028)	(6,500)	(5,006)	(7,353)	(10,003)	(11,009)
Impact of stock options and other	907)	1,706)	1,905)	1,269)	2,005)	1,644)
Financing activities	(14,460)	(14,036)	(14,855)	(12,146)	(14,876)	(21,531)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(86)	112)	(252)	(170)	(497)	101)
Change in cash, cash equivalents and restricted cash	386)	75)	1,235)	1,032)	(3,074)	(5,893)
Cash, cash equivalents and restricted cash, beginning of year	9,556)	9,482)	8,246)	7,214)	10,288)	16,181)
Cash, cash equivalents and restricted cash, end of year	9,942)	9,557)	9,481)	8,246)	7,214)	10,288)

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).

The financial profile exhibits a consistent ability to generate strong operational cash flows, which are primarily utilized to fund capital investments and provide significant returns to shareholders. Net earnings demonstrate a steady upward trajectory, growing from 14,352 million USD in 2021 to 16,144 million USD by 2026, providing a stable foundation for the company's liquidity position.

Operating Activities: Net cash provided by operating activities remains robust, peaking at 19,846 million USD in 2024. While net earnings have grown linearly, the cash flow from operations shows more volatility due to fluctuations in working capital. Notable patterns include significant outflows for inventories in 2022 and 2026, and a substantial impairment charge of 1,341 million USD related to indefinite-lived intangible assets in 2024. Despite these variances, the operational cash generation consistently exceeds net income, supported by non-cash charges such as depreciation and amortization, which increased from 2,735 million USD in 2021 to 3,160 million USD in 2026.
Investing Activities: A clear trend of increasing capital investment is evident. Capital expenditures have risen steadily every year, from 2,787 million USD in 2021 to 4,409 million USD in 2026, suggesting a strategic commitment to expanding or upgrading productive assets. Investing activities have remained consistently negative, reflecting this aggressive reinvestment strategy. While acquisitions were a significant drain on cash in 2022 (1,381 million USD), they became negligible from 2024 onwards, indicating a shift from external growth via M&A to internal organic growth through capital expenditure.
Financing Activities: Financing activities are characterized by a sustained commitment to shareholder distributions. Dividends to shareholders have grown systematically from 8,263 million USD in 2021 to 10,232 million USD in 2026. Conversely, treasury stock purchases have seen a general decline, dropping from a peak of 11,009 million USD in 2021 to 5,028 million USD in 2026. Debt management shows a high volume of turnover in short-term debt and a balanced approach to long-term debt, with additions and reductions remaining relatively proportional over the analyzed period.
Liquidity and Cash Position: The cash and restricted cash balance experienced a significant decline between 2021 and 2022, falling from 16,181 million USD to 7,214 million USD. However, a recovery phase followed, with the end-of-year cash position stabilizing and gradually increasing to 9,942 million USD by 2026. This stabilization is a result of balancing high shareholder payouts and increasing capital expenditures against strong operating cash flows and strategic debt issuance.

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Procter & Gamble Co. (NYSE:PG)

Cash Flow Statement