Procter & Gamble Co. (NYSE:PG)

The financial data over the period from 2005 to 2024 reveals several notable trends in profitability, equity, and return on equity (ROE) for the subject company.

Net Earnings

Net earnings exhibit a general upward trajectory with fluctuations. Initially, earnings increased steadily from 7,257 million USD in 2005 to a peak of 13,436 million USD in 2009. Subsequently, a decline is observed, reaching a low of 7,036 million USD in 2015. The following years show a recovery and growth, culminating in strong earnings exceeding 14,000 million USD from 2021 through 2024. The recovery phase starting in 2016 indicates improved operational performance and possibly effective management strategies post-2015 downturn.

Shareholders’ Equity

Shareholders' equity changes sharply between 2005 and 2006, jumping from 17,477 million USD to 62,908 million USD, thereafter showing modest increases and periods of decline. From 2006 through approximately 2014, equity mostly remains near or above 60,000 million USD, with some volatility. However, post-2014, equity declines consistently until 2021, hitting a low near 46,300 million USD. The last few years indicate stabilization and a slight increase, ending at 50,287 million USD in 2024. This pattern may reflect strategic capital management, share repurchases, dividend policies, or asset revaluation impacts over the period.

Return on Equity (ROE)

ROE begins very high at 41.52% in 2005, falls significantly to around 13.8% in 2006, and then stabilizes mostly in the 15-21% range up to 2010. From 2010 onward, ROE fluctuates but generally improves, even reaching peak values near 30% from 2021 to 2023. The dip to 8.26% in 2019 is noteworthy, corresponding with a drop in net earnings and equity, suggesting lower profitability relative to equity during that year. The elevated ROE in the most recent years indicates robust profitability relative to the equity base, potentially reflecting enhanced operational efficiency or favorable financial leverage.

Overall, the company shows an ability to recover from earnings downturns, maintain sizable equity, and deliver strong returns to shareholders in recent years. The interplay between net earnings growth and fluctuating equity impacts ROE, demonstrating periods of both expansion and consolidation. The data suggests a resilient financial profile with a capacity for sustained profitability.