Return on Equity (ROE)
since 2005
Calculation
Procter & Gamble Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings attributable to Procter & Gamble1 | ÷ | Shareholders’ equity attributable to Procter & Gamble1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2026 | 29.67% | = | 100 | × | 16,046) | ÷ | 54,081) |
| Jun 30, 2025 | 30.71% | = | 100 | × | 15,974) | ÷ | 52,012) |
| Jun 30, 2024 | 29.59% | = | 100 | × | 14,879) | ÷ | 50,287) |
| Jun 30, 2023 | 31.33% | = | 100 | × | 14,653) | ÷ | 46,777) |
| Jun 30, 2022 | 31.64% | = | 100 | × | 14,742) | ÷ | 46,589) |
| Jun 30, 2021 | 30.85% | = | 100 | × | 14,306) | ÷ | 46,378) |
| Jun 30, 2020 | 28.00% | = | 100 | × | 13,027) | ÷ | 46,521) |
| Jun 30, 2019 | 8.26% | = | 100 | × | 3,897) | ÷ | 47,194) |
| Jun 30, 2018 | 18.64% | = | 100 | × | 9,750) | ÷ | 52,293) |
| Jun 30, 2017 | 27.77% | = | 100 | × | 15,326) | ÷ | 55,184) |
| Jun 30, 2016 | 18.33% | = | 100 | × | 10,508) | ÷ | 57,341) |
| Jun 30, 2015 | 11.27% | = | 100 | × | 7,036) | ÷ | 62,419) |
| Jun 30, 2014 | 16.82% | = | 100 | × | 11,643) | ÷ | 69,214) |
| Jun 30, 2013 | 16.62% | = | 100 | × | 11,312) | ÷ | 68,064) |
| Jun 30, 2012 | 16.95% | = | 100 | × | 10,756) | ÷ | 63,439) |
| Jun 30, 2011 | 17.44% | = | 100 | × | 11,797) | ÷ | 67,640) |
| Jun 30, 2010 | 20.84% | = | 100 | × | 12,736) | ÷ | 61,115) |
| Jun 30, 2009 | 21.29% | = | 100 | × | 13,436) | ÷ | 63,099) |
| Jun 30, 2008 | 17.38% | = | 100 | × | 12,075) | ÷ | 69,494) |
| Jun 30, 2007 | 15.49% | = | 100 | × | 10,340) | ÷ | 66,760) |
| Jun 30, 2006 | 13.80% | = | 100 | × | 8,684) | ÷ | 62,908) |
| Jun 30, 2005 | 41.52% | = | 100 | × | 7,257) | ÷ | 17,477) |
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), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in millions
The analysis of Return on Equity (ROE) from 2005 to 2026 reveals three distinct operational phases characterized by significant shifts in capital structure and earnings performance. The ROE has transitioned from an initial period of extreme volatility to a phase of moderate stability, ultimately arriving at a sustained period of high efficiency.
- Initial Capital Expansion and ROE Compression
- Between 2005 and 2006, a sharp decline in ROE is observed, falling from 41.52% to 13.80%. This contraction was primarily driven by a substantial increase in shareholders' equity, which rose from 17,477 million USD to 62,908 million USD. While net earnings grew during this period, the growth in the equity base far outpaced earnings growth, leading to a significant dilution of the return on equity.
- Period of Moderate Stability and Volatility
- From 2007 to 2019, ROE exhibited considerable fluctuations, generally oscillating between 11% and 27%. A notable period of stability occurred between 2007 and 2014, where ROE remained largely within the 15% to 21% range. However, significant volatility emerged toward the end of this period, specifically in 2019, when ROE reached a historical low of 8.26%. This decline coincided with a sharp drop in net earnings to 3,897 million USD, representing the lowest earnings level in the observed timeframe.
- Sustained High-Efficiency Phase
- Starting in 2020, a marked recovery and subsequent stabilization of ROE are evident. From 2020 through 2026, ROE consistently remained high, fluctuating within a narrow band between 28.00% and 31.64%. This phase is characterized by a combination of recovered and growing net earnings, which reached 16,046 million USD by 2026, and a more controlled shareholders' equity base. The maintenance of equity levels between 46,000 million USD and 54,000 million USD during this period indicates a more efficient use of capital to generate profits compared to the 2006-2014 era.
- Correlation Between Equity Management and ROE
- A clear inverse relationship is observed between the magnitude of shareholders' equity and ROE. In the years where equity peaked (2008-2014), ROE remained moderate. Conversely, the most recent period of high ROE (2020-2026) coincides with a leaner equity structure relative to the net earnings generated, suggesting a strategic shift toward optimizing the capital base to enhance shareholder returns.
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Comparison to Industry (Consumer Staples)
Procter & Gamble Co., ROE, long-term trends, comparison to industry (consumer staples)
| Procter & Gamble Co. | Consumer Staples | |
|---|---|---|
| Jun 30, 2026 | 29.67% | — |
| Jun 30, 2025 | 30.71% | 32.41% |
| Jun 30, 2024 | 29.59% | 32.18% |
| Jun 30, 2023 | 31.33% | 30.71% |
| Jun 30, 2022 | 31.64% | 32.10% |
| Jun 30, 2021 | 30.85% | 31.40% |
| Jun 30, 2020 | 28.00% | 30.98% |
| Jun 30, 2019 | 8.26% | 22.71% |
| Jun 30, 2018 | 18.64% | 28.05% |
| Jun 30, 2017 | 27.77% | 25.14% |
| Jun 30, 2016 | 18.33% | 25.00% |
| Jun 30, 2015 | 11.27% | 23.15% |
| Jun 30, 2014 | 16.82% | 23.21% |
| Jun 30, 2013 | 16.62% | 24.09% |
| Jun 30, 2012 | 16.95% | 23.55% |
| Jun 30, 2011 | 17.44% | 23.75% |
| Jun 30, 2010 | 20.84% | 24.19% |
| Jun 30, 2009 | 21.29% | 23.20% |
| Jun 30, 2008 | 17.38% | 22.49% |
| Jun 30, 2007 | 15.49% | 18.15% |
| Jun 30, 2006 | 13.80% | 18.58% |
| Jun 30, 2005 | 41.52% | 22.40% |
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), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).