Procter & Gamble Co. (NYSE:PG)

The analysis of the financial data over the period from June 30, 2005, to June 30, 2025, reveals several significant trends in the company's capital structure, particularly focusing on total debt, shareholders' equity, and the debt to equity ratio.

Total Debt

Total debt exhibited considerable volatility during the observed period. Initially, there was a sharp increase from approximately 24.3 billion USD in 2005 to a peak of around 38.1 billion USD in 2006. Following this peak, debt levels fluctuated, experiencing a general decline until about 2015 where it decreased to approximately 30.4 billion USD. After 2015, total debt showed a pattern of fluctuating increases and decreases, with notable rises around 2020 and 2023, reaching near 34.6 billion USD by 2025. Overall, total debt does not demonstrate a clear upward or downward trend but rather periodic adjustments within a range between roughly 29 billion and 38 billion USD.

Shareholders’ Equity

Shareholders' equity attributable to the company demonstrated significant variation over the period. Starting at about 17.5 billion USD in 2005, it surged dramatically to nearly 67 billion USD by 2007 and maintained levels above 60 billion USD until approximately 2014. After 2014, equity showed a steady downward trajectory, declining to a low near 46.4 billion USD around 2020 to 2022, before edging upward again toward approximately 52 billion USD by 2025. This long-term decline post-2014 suggests a reduction in net assets attributable to the shareholders, potentially reflecting share repurchases, dividend payments, or other equity-related activities.

Debt to Equity Ratio

The debt to equity ratio reveals insightful dynamics in the company’s leverage. The ratio was high at 1.39 in 2005, then declined sharply to approximately 0.53 by 2007. For much of the period from 2007 to 2015, the ratio remained relatively stable between 0.46 and 0.57, indicating a balanced leverage profile. Post-2015, the ratio exhibited a gradual upward movement, peaking around 0.75 in 2020, suggesting increased leverage during that period in relation to equity. Subsequently, the ratio fluctuated slightly but generally remained around 0.65 to 0.74 through 2025. The increase in leverage after 2015 aligns with the decline in shareholders’ equity and periods of increasing total debt, indicating a strategic shift or operational factors influencing capital structure.

In summary, the company’s total debt has experienced fluctuations without a definitive long-term trend, while shareholders' equity rose notably in the early years but declined in the latter half of the timeline before modest recovery. The debt to equity ratio trends corroborate these observations, highlighting a period of deleveraging followed by increased leverage in recent years. These patterns suggest an evolving approach to the management of financial leverage and equity, potentially influenced by external market conditions, corporate strategy, and capital allocation decisions.