Procter & Gamble Co. (NYSE:PG)

Asset Turnover

The reported total asset turnover demonstrates a gradual increase from 0.59 in 2020 to a peak of 0.69 in 2024, followed by a slight decline to 0.67 in 2025. The adjusted total asset turnover follows a very similar pattern, starting at 0.6 and rising steadily to 0.7 by 2024 before declining to 0.68 in 2025. This indicates a generally improving efficiency in asset usage over the observed period, with minor deceleration in the latest year.

Current Ratio

The reported current ratio shows a declining trend from 0.85 in 2020 to 0.63 in 2023, indicating a decreasing short-term liquidity, but it subsequently recovers to 0.73 in 2024 and slightly declines again to 0.7 in 2025. The adjusted current ratio mirrors this behavior, moving from 0.86 down to 0.64 in 2023, then rebounding to 0.74 in 2024, followed by a marginal dip to 0.71. Overall, the liquidity position weakened initially but improved moderately in the final years.

Debt Ratios

Reported debt to equity shows a decrease from 0.75 in 2020 to 0.68 in 2022, then rises to 0.74 in 2023 before declining again to 0.65 and 0.66 in 2024 and 2025 respectively, indicating some volatility but an overall slight improvement in financial structure. Adjusted debt to equity follows a similar pattern with a downward trend from 0.69 to 0.62 by 2022, a rise to 0.68 in 2023, and then falling to 0.6 and 0.63 afterwards. Reported and adjusted debt to capital ratios similarly decrease over the period, from around 0.41-0.43 in 2020 to approximately 0.38-0.4 in 2025, implying a moderate reduction in leverage.

Financial Leverage

Reported financial leverage gradually declines from 2.59 in 2020 to 2.41 in 2025, indicating a modest reduction in the firm's reliance on debt financing. Adjusted financial leverage shows a consistent downward trend from 2.31 to 2.18, corroborating this observation of decreasing leverage and potential strengthening equity base.

Profit Margins

The reported net profit margin remains relatively stable, fluctuating modestly between 18.36% in 2020 and 18.95% in 2025, with a low point of 17.7% in 2024. The adjusted net profit margin shows more pronounced variability, increasing sharply from 15.86% in 2020 to 21.45% in 2021, then declining steadily to 17.4% in 2023 before rising again to 18.97% in 2025. This suggests variability in profitability adjustments over time but an overall ability to sustain margin levels near 18-19%.

Return on Equity (ROE)

Reported ROE increases from 28% in 2020 to a peak of 31.64% in 2022, then declines to 29.59% in 2024 before slightly recovering to 30.71% in 2025. The adjusted ROE shows a similar trend with an initial increase from 21.91% in 2020 to 32.1% in 2021, followed by a decline and stabilization around 27-28% in the final years. This indicates solid shareholder returns with some fluctuation likely due to changes in operational efficiency and capital structure.

Return on Assets (ROA)

The reported ROA shows steady growth from 10.79% in 2020 to 12.76% in 2025, reflecting improved asset efficiency in generating profits over the period. Conversely, the adjusted ROA peaks in 2021 at 13.95% before trending slightly downward and recovering to 12.93% by 2025. Overall, ROA trends suggest effective utilization of assets with minor adjustments affecting the exact figures.

Net Sales

There is a consistent upward trend in net sales from 2020 to 2025. Starting at approximately 70.95 billion US dollars in 2020, net sales increased steadily each year, reaching about 84.28 billion US dollars by 2025. The growth rate appears to moderate slightly in the later years but remains positive throughout the period.

Total Assets

The total assets show a slight decline from 2020 to 2022, decreasing from roughly 120.7 billion US dollars to about 117.2 billion US dollars. Following this decline, there is a gradual recovery through to 2025, with total assets increasing again to an estimated 125.2 billion US dollars. This pattern indicates a period of asset optimization or divestiture followed by asset expansion or reinvestment.

Reported Total Asset Turnover

The reported total asset turnover ratio demonstrates improvement over the observed years. Beginning at 0.59 in 2020, it rises steadily to reach a peak of 0.69 in 2024, with a slight decline to 0.67 in 2025. This suggests enhanced efficiency in generating sales from assets, although the minor decrease in the final year may warrant further observation.

Adjusted Total Assets

Adjusted total assets mirror the trend seen in total assets, with a decline from 118.5 billion US dollars in 2020 to 115.6 billion US dollars in 2022, followed by a recovery to 123.6 billion US dollars by 2025. This reinforces the notion of an initial contraction phase succeeded by asset growth when adjustments are considered.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio improves progressively from 0.60 in 2020 to peak at 0.70 in 2024, before a slight decrease to 0.68 in 2025. This indicates an overall enhancement in asset utilization efficiency when adjustments are made, aligning closely with the reported ratio's pattern and supporting the observation of increased operational effectiveness.

Summary

Overall, the data indicates positive sales growth and improving efficiency in asset utilization. The temporary decrease in total and adjusted assets between 2020 and 2022, followed by recovery, suggests strategic management of asset base. Both reported and adjusted total asset turnover ratios corroborate this, showing improved efficiency in converting assets into sales over the period, with minor fluctuations near the end of the timeline that may require monitoring.

Current Assets

Current assets demonstrate a declining trend from June 2020 to June 2022, decreasing from 27,987 million USD to 21,653 million USD. However, from June 2022 onwards, current assets show a recovery pattern, steadily increasing to 25,392 million USD by June 2025.

Current Liabilities

Current liabilities remain relatively stable between June 2020 and June 2022, fluctuating slightly around the 33,000 million USD mark. From June 2022 to June 2023, there is an increase to 35,756 million USD, followed by a decrease in 2024 and a rise again in 2025, reaching 36,058 million USD.

Reported Current Ratio

The reported current ratio declines consistently from 0.85 in June 2020 to 0.63 in June 2023, indicating a diminishing ability to cover short-term liabilities with current assets during this period. This ratio then improves to 0.73 in June 2024 but drops somewhat to 0.7 in June 2025, suggesting partial restoration of short-term liquidity but remaining below initial levels.

Adjusted Current Liabilities

Adjusted current liabilities closely follow the trend of reported current liabilities, with minor differences in values. They increase from 32,504 million USD in June 2020 to a peak of 35,582 million USD in June 2023, followed by a decreasing trend in 2024 and a subsequent increase in 2025 to 35,869 million USD.

Adjusted Current Ratio

The adjusted current ratio mirrors the behavior of the reported current ratio, showing a decline from 0.86 in June 2020 to 0.64 in June 2023. Thereafter, it improves to 0.74 in June 2024 before slightly declining again to 0.71 in June 2025. This pattern reflects similar liquidity dynamics as the reported ratio, with an overall decrease in short-term financial health in the first three years, followed by modest recovery.

Total Debt

The total debt demonstrates fluctuations over the analyzed period, starting at 34,720 million US dollars in mid-2020, declining to a low point of 31,493 million in mid-2022, then rising again to approximately 34,508 million by mid-2025. This pattern indicates a temporary reduction in debt followed by a rebound to values close to the initial level.

Shareholders’ Equity Attributable to Procter & Gamble

Shareholders’ equity shows a generally increasing trend throughout the observed years. Starting at 46,521 million US dollars in mid-2020, equity levels remained relatively stable until mid-2023, after which a more pronounced increase occurred, reaching 52,012 million by mid-2025. This suggests sustained growth in equity over the longer term.

Reported Debt to Equity Ratio

The reported debt to equity ratio consistently remains below 1.0, indicating more equity than debt in the company’s capital structure. It decreased from 0.75 in 2020 to a low of 0.65 in 2024 before a slight increase to 0.66 in 2025. This trend reflects improved leverage management, with some minor reversal in the last year.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to total debt, starting at 35,611 million, declining until mid-2022 to 32,293 million, then increasing again to 35,464 million in mid-2025. The adjustment does not significantly alter the observed pattern but provides a slightly higher baseline and elevated figures throughout.

Adjusted Total Shareholders’ Equity

Adjusted shareholders’ equity displays steady growth, rising from 51,358 million in mid-2020 to 56,610 million in mid-2025. Compared to the reported equity, the adjusted figures are consistently higher, reflecting potentially more comprehensive accounting adjustments, yet the trend remains clearly upward.

Adjusted Debt to Equity Ratio

This ratio declines from 0.69 in 2020 to a minimum of 0.60 in 2024, indicating a reduction in leverage relative to adjusted equity. A moderate increase to 0.63 in 2025 is noted but overall reflects improved debt management relative to equity when compared to initial years.

The financial data reveals fluctuations in the company's debt and capital structure over the six-year period.

Total Debt

Total debt exhibited a declining trend from 34,720 million US$ in June 2020 to 31,493 million US$ in June 2022, followed by an increase reaching 34,508 million US$ in June 2025. This indicates a reduction phase for two years, then a gradual build-up of liabilities in subsequent years.

Total Capital

Total capital decreased from 81,241 million US$ in June 2020 to 78,082 million US$ in June 2022, but then increased steadily to 86,520 million US$ by June 2025. This reflects an initial contraction in capital base, with recovery and growth afterward.

Reported Debt to Capital Ratio

Reported debt to capital ratio declined from 0.43 in June 2020 to 0.40 in June 2022, briefly rose to 0.43 in June 2023, and then decreased again to 0.40 by June 2025. Despite minor fluctuations, the ratio remained around the 0.40 mark, suggesting moderate leverage with no extreme variability.

Adjusted Total Debt

Adjusted total debt followed a pattern similar to reported total debt, decreasing from 35,611 million US$ in June 2020 to 32,293 million US$ in June 2022, then increasing again to 35,464 million US$ in June 2025. This reinforces the observations from reported figures, taking into account adjustments.

Adjusted Total Capital

Adjusted total capital rose from 86,969 million US$ in June 2020 to 87,310 million US$ in June 2023 and continued to 92,074 million US$ by June 2025, showing consistent growth after the initial period. The upward trend indicates the company bolstered its capital base over time when adjustments are considered.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio declined from 0.41 in June 2020 to 0.38 in June 2022, increased again to 0.41 in June 2023, and decreased to 0.39 in June 2025. This pattern aligns with the reported ratio, though adjusted figures suggest slightly lower leverage overall.

In summary, the data illustrates that the company managed to reduce leverage levels through 2022, followed by a moderate rise and stabilization of debt levels relative to capital. Capital generally showed recovery and expansion after an initial dip. These trends reflect a balanced approach to managing financial leverage with periods of deleveraging and subsequent capital strengthening.

Total Assets

The total assets exhibited a slight decline from 120,700 million USD in 2020 to 117,208 million USD in 2022, followed by a gradual increase reaching 125,231 million USD by 2025. This indicates a period of asset contraction in the initial years with a recovery phase starting in 2023 and continuing through 2025.

Shareholders’ Equity Attributable to Procter & Gamble

Shareholders’ equity remained relatively stable between 46,378 million USD and 46,777 million USD from 2020 through 2023. A notable increase occurred starting in 2024, with equity rising to 50,287 million USD and further to 52,012 million USD in 2025, suggesting improved retained earnings or capital contributions in the later years.

Reported Financial Leverage

The reported financial leverage ratio gradually decreased from 2.59 in 2020 to 2.52 in 2022, indicating a slight reduction in leverage. However, it rebounded to 2.58 in 2023 before declining again to 2.41 by 2025. Overall, there is a subtle but discernible trend toward reduced financial leverage over the analyzed period, which could reflect a strengthening equity base or cautious debt management.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, decreasing from 118,509 million USD in 2020 to 115,596 million USD in 2022, then increasing steadily to 123,594 million USD by 2025. This pattern underscores a moderate asset revaluation or adjustments influencing the asset base consistently with total asset trends.

Adjusted Total Shareholders’ Equity

Adjusted total shareholders’ equity maintained relative stability in the early years, ranging from 50,871 million USD in 2021 to 52,198 million USD in 2022, with a slight dip to 51,886 million USD in 2023. Subsequently, it rose significantly to 55,498 million USD in 2024 and 56,610 million USD in 2025. This upward movement suggests enhanced equity value after adjustments, possibly due to revaluations or other accounting considerations.

Adjusted Financial Leverage

The adjusted financial leverage ratio showed a steady decline from 2.31 in 2020 to 2.21 in 2022, followed by a modest increase to 2.29 in 2023. From 2024 onwards, it decreased again slightly to 2.18 by 2025. This trend indicates a gradual reduction in leverage once adjustments are accounted for, reflecting a possible conservative approach to financing and improved equity positions.

Net Earnings

Net earnings attributable demonstrate a generally increasing trend over the period studied. Starting at 13,027 million US dollars in mid-2020, earnings rose to 15,974 million US dollars by mid-2025, indicating steady growth with minor fluctuations. The increase from 2023 to 2025 is more pronounced after a slight plateau between 2022 and 2023.

Net Sales

Net sales consistently increased from 70,950 million US dollars in mid-2020 to 84,284 million US dollars by mid-2025. The growth trend appears steady and incremental each year, showing the company's ability to expand its revenue base gradually over the five-year span.

Reported Net Profit Margin

The reported net profit margin exhibits moderate variability. Starting at 18.36% in mid-2020, it increased slightly to 18.79% in mid-2021 but then declined to a low of 17.7% in mid-2024, before recovering to 18.95% in mid-2025. This pattern suggests some pressure on profit margins during the middle years, with improvement in the latest period assessed.

Adjusted Net Earnings

Adjusted net earnings show a more volatile path compared to net earnings. A significant rise occurs between mid-2020 (11,250 million US dollars) and mid-2021 (16,329 million US dollars), followed by a decline to 14,267 million in mid-2023. Subsequently, adjusted earnings increase again, reaching 15,985 million by mid-2025. This indicates that adjusted figures are more sensitive to non-recurring items or accounting adjustments, reflecting fluctuations in underlying profitability.

Adjusted Net Profit Margin

The adjusted net profit margin mirrors the adjusted net earnings trend, peaking sharply at 21.45% in mid-2021 before declining to 17.4% in mid-2023. After this trough, it recovers to 18.97% by mid-2025. This suggests that, after adjusting for special items, the company’s profitability was strongest in early periods but faced challenges mid-cycle, with a partial rebound thereafter.

Net Earnings

Net earnings attributable to the company exhibited a generally positive trend over the observed period, increasing from approximately 13,027 million USD in 2020 to an estimated 15,974 million USD in 2025. Although there was a modest decline between 2022 and 2023, net earnings resumed growth thereafter.

Shareholders' Equity

Shareholders' equity attributable to the company remained relatively stable between 2020 and 2023, fluctuating around 46,500 million USD. From 2023 onward, there was a noticeable increase, reaching approximately 52,012 million USD by 2025, indicating growth in the company’s net asset base.

Reported Return on Equity (ROE)

Reported ROE showed a rising trend from 28% in 2020 to a peak of 31.64% in 2022, followed by a slight decline to 29.59% in 2024, before recovering to 30.71% in 2025. This pattern suggests strong profitability relative to equity with minor fluctuations in recent years.

Adjusted Net Earnings

Adjusted net earnings showed significant volatility, increasing markedly from 11,250 million USD in 2020 to a peak of 16,329 million USD in 2021. This was followed by a slight decline through 2023, but the adjusted net earnings rebounded to reach 15,985 million USD by 2025. The adjustments appear to smooth earnings fluctuations but still show variable profitability trends.

Adjusted Total Shareholders’ Equity

The adjusted total shareholders’ equity roughly paralleled the trend in reported equity but at slightly higher levels, starting at 51,358 million USD in 2020 and growing steadily to about 56,610 million USD in 2025. The upward progression indicates enhanced valuation or adjustments recognizing additional components of equity.

Adjusted Return on Equity (ROE)

Adjusted ROE increased sharply from 21.91% in 2020 to 32.1% in 2021, then gradually declined to 27.09% in 2024 before showing a modest recovery to 28.24% in 2025. The initial rise and subsequent decrease indicate changing profitability dynamics when adjusting for specific financial elements, with overall strong returns maintained throughout.

The financial data over the six-year period reflect notable patterns in profitability and asset management metrics.

Net Earnings

Net earnings attributable to the company show an overall upward trajectory, increasing from $13,027 million in 2020 to $15,974 million in 2025. There is a steady growth with minor fluctuations, particularly a slight dip between 2022 and 2023, followed by gradual recovery and continued growth thereafter.

Total Assets

Total assets demonstrate relative stability, ranging from $117,208 million to $125,231 million. The asset base slightly decreased between 2020 and 2022 but rebounded after 2023, showing a moderate expansion by 2025. This indicates the company maintained a consistent asset size with modest growth emerging in recent years.

Reported Return on Assets (ROA)

The reported ROA improved from 10.79% in 2020 to a peak of 12.58% in 2022. It declined marginally in 2023 but then stabilized around 12.16%-12.76% through 2024 and 2025. This suggests efficient asset utilization with a slight peak followed by stabilization at a strong performance level.

Adjusted Net Earnings

Adjusted net earnings exhibit more volatility compared to reported figures, jumping significantly from $11,250 million in 2020 to $16,329 million in 2021. A slight decrease ensued through 2023, followed by a recovery and growth to $15,985 million by 2025. This reflects the impact of adjustments on earnings, potentially attributable to one-time items or accounting changes influencing net income.

Adjusted Total Assets

Adjusted total assets closely mirror the trend of reported assets, slightly declining from $118,509 million in 2020 to $115,596 million in 2022, before increasing again to $123,594 million in 2025. This stable asset base supports continued earnings generation after adjustments.

Adjusted Return on Assets (ROA)

The adjusted ROA shows notable variation, increasing sharply from 9.49% in 2020 to 13.95% in 2021, then gradually decreasing to 11.99% in 2023. It rises thereafter, reaching 12.93% in 2025. This pattern indicates that adjustments affect the profitability metrics significantly, with a high peak in 2021 and a stabilization at a level above the initial year’s figure.

Overall, the data suggest consistent profitability with improving returns on the asset base. The company’s asset management appears stable, while adjusted earnings and ROA highlight the influence of non-recurring or accounting adjustments on financial performance metrics. The general trend is positive, with strengthening net earnings and returns by the end of the period.