Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Procter & Gamble Co. (NYSE:PG)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Procter & Gamble Co., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Activity Ratio
Total Asset Turnover
Reported 0.59 0.59 0.56 0.54 0.51 0.59
Adjusted 0.59 0.58 0.56 0.53 0.51 0.59
Liquidity Ratio
Current Ratio
Reported 0.85 0.75 0.83 0.88 1.10 1.00
Adjusted 0.86 0.76 0.84 0.89 1.06 0.96
Solvency Ratios
Debt to Equity
Reported 0.75 0.64 0.60 0.57 0.53 0.49
Adjusted 0.69 0.59 0.57 0.53 0.50 0.45
Debt to Capital
Reported 0.43 0.39 0.37 0.36 0.35 0.33
Adjusted 0.41 0.37 0.36 0.35 0.33 0.31
Financial Leverage
Reported 2.59 2.44 2.26 2.18 2.22 2.07
Adjusted 2.35 2.21 2.08 1.96 1.98 1.84
Profitability Ratios
Net Profit Margin
Reported 18.36% 5.76% 14.59% 23.56% 16.09% 9.22%
Adjusted 15.86% 5.39% 12.17% 17.64% 10.40% 3.96%
Return on Equity (ROE)
Reported 28.00% 8.26% 18.64% 27.77% 18.33% 11.27%
Adjusted 21.91% 6.95% 14.12% 18.47% 10.58% 4.29%
Return on Assets (ROA)
Reported 10.79% 3.39% 8.24% 12.73% 8.27% 5.43%
Adjusted 9.32% 3.14% 6.80% 9.42% 5.34% 2.33%

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Procter & Gamble Co.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Procter & Gamble Co.’s adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Procter & Gamble Co.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Procter & Gamble Co.’s adjusted debt-to-capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Procter & Gamble Co.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Procter & Gamble Co.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Procter & Gamble Co.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Procter & Gamble Co.’s adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Procter & Gamble Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Net sales 70,950  67,684  66,832  65,058  65,299  76,279 
Total assets 120,700  115,095  118,310  120,406  127,136  129,495 
Activity Ratio
Total asset turnover1 0.59 0.59 0.56 0.54 0.51 0.59
Adjusted
Selected Financial Data (US$ in millions)
Net sales 70,950  67,684  66,832  65,058  65,299  76,279 
Adjusted total assets2 120,700  116,238  119,563  121,809  127,069  129,622 
Activity Ratio
Adjusted total asset turnover3 0.59 0.58 0.56 0.53 0.51 0.59

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
Total asset turnover = Net sales ÷ Total assets
= 70,950 ÷ 120,700 = 0.59

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 70,950 ÷ 120,700 = 0.59

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Procter & Gamble Co.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 27,987  22,473  23,320  26,494  33,782  29,646 
Current liabilities 32,976  30,011  28,237  30,210  30,770  29,790 
Liquidity Ratio
Current ratio1 0.85 0.75 0.83 0.88 1.10 1.00
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 27,987  22,473  23,320  26,494  32,275  28,290 
Adjusted current liabilities3 32,504  29,543  27,724  29,933  30,455  29,401 
Liquidity Ratio
Adjusted current ratio4 0.86 0.76 0.84 0.89 1.06 0.96

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 27,987 ÷ 32,976 = 0.85

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 27,987 ÷ 32,504 = 0.86

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Procter & Gamble Co.’s adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 34,720  30,092  31,286  31,592  30,598  30,350 
Shareholders’ equity attributable to Procter & Gamble 46,521  47,194  52,293  55,184  57,341  62,419 
Solvency Ratio
Debt to equity1 0.75 0.64 0.60 0.57 0.53 0.49
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 35,611  31,235  32,539  32,995  32,038  31,833 
Adjusted total shareholders’ equity3 51,358  52,500  57,588  62,159  64,130  70,384 
Solvency Ratio
Adjusted debt to equity4 0.69 0.59 0.57 0.53 0.50 0.45

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
= 34,720 ÷ 46,521 = 0.75

2 Adjusted total debt. See details »

3 Adjusted total shareholders’ equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareholders’ equity
= 35,611 ÷ 51,358 = 0.69

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Procter & Gamble Co.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 34,720  30,092  31,286  31,592  30,598  30,350 
Total capital 81,241  77,286  83,579  86,776  87,939  92,769 
Solvency Ratio
Debt to capital1 0.43 0.39 0.37 0.36 0.35 0.33
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 35,611  31,235  32,539  32,995  32,038  31,833 
Adjusted total capital3 86,969  83,735  90,127  95,154  96,168  102,217 
Solvency Ratio
Adjusted debt to capital4 0.41 0.37 0.36 0.35 0.33 0.31

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 34,720 ÷ 81,241 = 0.43

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 35,611 ÷ 86,969 = 0.41

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Procter & Gamble Co.’s adjusted debt-to-capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 120,700  115,095  118,310  120,406  127,136  129,495 
Shareholders’ equity attributable to Procter & Gamble 46,521  47,194  52,293  55,184  57,341  62,419 
Solvency Ratio
Financial leverage1 2.59 2.44 2.26 2.18 2.22 2.07
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 120,700  116,238  119,563  121,809  127,069  129,622 
Adjusted total shareholders’ equity3 51,358  52,500  57,588  62,159  64,130  70,384 
Solvency Ratio
Adjusted financial leverage4 2.35 2.21 2.08 1.96 1.98 1.84

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= 120,700 ÷ 46,521 = 2.59

2 Adjusted total assets. See details »

3 Adjusted total shareholders’ equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareholders’ equity
= 120,700 ÷ 51,358 = 2.35

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Procter & Gamble Co.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble 13,027  3,897  9,750  15,326  10,508  7,036 
Net sales 70,950  67,684  66,832  65,058  65,299  76,279 
Profitability Ratio
Net profit margin1 18.36% 5.76% 14.59% 23.56% 16.09% 9.22%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 11,250  3,651  8,132  11,479  6,788  3,017 
Net sales 70,950  67,684  66,832  65,058  65,299  76,279 
Profitability Ratio
Adjusted net profit margin3 15.86% 5.39% 12.17% 17.64% 10.40% 3.96%

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
Net profit margin = 100 × Net earnings attributable to Procter & Gamble ÷ Net sales
= 100 × 13,027 ÷ 70,950 = 18.36%

2 Adjusted net earnings. See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 11,250 ÷ 70,950 = 15.86%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Procter & Gamble Co.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble 13,027  3,897  9,750  15,326  10,508  7,036 
Shareholders’ equity attributable to Procter & Gamble 46,521  47,194  52,293  55,184  57,341  62,419 
Profitability Ratio
ROE1 28.00% 8.26% 18.64% 27.77% 18.33% 11.27%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 11,250  3,651  8,132  11,479  6,788  3,017 
Adjusted total shareholders’ equity3 51,358  52,500  57,588  62,159  64,130  70,384 
Profitability Ratio
Adjusted ROE4 21.91% 6.95% 14.12% 18.47% 10.58% 4.29%

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
ROE = 100 × Net earnings attributable to Procter & Gamble ÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × 13,027 ÷ 46,521 = 28.00%

2 Adjusted net earnings. See details »

3 Adjusted total shareholders’ equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total shareholders’ equity
= 100 × 11,250 ÷ 51,358 = 21.91%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Procter & Gamble Co.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble 13,027  3,897  9,750  15,326  10,508  7,036 
Total assets 120,700  115,095  118,310  120,406  127,136  129,495 
Profitability Ratio
ROA1 10.79% 3.39% 8.24% 12.73% 8.27% 5.43%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 11,250  3,651  8,132  11,479  6,788  3,017 
Adjusted total assets3 120,700  116,238  119,563  121,809  127,069  129,622 
Profitability Ratio
Adjusted ROA4 9.32% 3.14% 6.80% 9.42% 5.34% 2.33%

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 2020 Calculation
ROA = 100 × Net earnings attributable to Procter & Gamble ÷ Total assets
= 100 × 13,027 ÷ 120,700 = 10.79%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 11,250 ÷ 120,700 = 9.32%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Procter & Gamble Co.’s adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.