Procter & Gamble Co. (NYSE:PG)

Total Asset Turnover

The reported total asset turnover displayed a consistent upward trend from 0.59 in June 2019 to 0.69 in June 2024, indicating a gradual improvement in the efficiency of asset utilization in generating sales. The adjusted total asset turnover followed a similar pattern, increasing steadily from 0.59 to 0.70 over the same period.

Current Ratio

The reported current ratio showed fluctuation, initially rising from 0.75 in 2019 to 0.85 in 2020, followed by a decline to 0.63 by 2023, before recovering to 0.73 in 2024. The adjusted current ratio mirrored this pattern, suggesting variability in short-term liquidity but an overall modest recovery in the latest year.

Debt to Equity Ratio

The reported debt to equity ratio experienced minor fluctuations, ranging from 0.64 in 2019, peaking at 0.75 in 2020, and ending at 0.65 in 2024. The adjusted measure showed a slight decrease from 0.59 to 0.60, indicating relative stability in the company’s leverage from the equity perspective over the period.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios remained fairly stable, oscillating slightly around the 0.39 mark throughout the years. This steadiness suggests a consistent capital structure with controlled reliance on debt financing.

Financial Leverage

The reported financial leverage declined slightly from 2.44 in 2019 to 2.43 in 2024, with a peak at 2.59 in 2020. The adjusted figures followed a similar trend, indicating a modest reduction in leverage levels, potentially highlighting cautious management of debt relative to equity and assets.

Net Profit Margin

Significant improvement in profitability is observed with the reported net profit margin increasing sharply from 5.76% in 2019 to a high level exceeding 17% from 2021 onwards, stabilizing around 17.7% in 2024. The adjusted net profit margin displays a parallel pattern, indicating enhanced operational efficiency and profit generation capacity sustained over multiple years.

Return on Equity (ROE)

The reported ROE exhibited substantial growth from 8.26% in 2019, peaking at above 31% between 2021 and 2023, and slightly declining to 29.59% in 2024. The adjusted ROE also increased significantly, though with marginal volatility, suggesting strong returns on shareholder investment over the period despite minor recent softening.

Return on Assets (ROA)

The reported ROA increased steadily from 3.39% in 2019 to around 12% by 2024, reflecting improved overall asset profitability. Adjusted ROA followed a similar trajectory with minor fluctuations, supporting the observation of enhanced efficiency in asset utilization to generate earnings.

Net sales

Net sales exhibited a consistent upward trajectory from 2019 through 2024. Starting at 67,684 million US dollars in 2019, sales increased steadily each year, reaching 84,039 million US dollars by 2024. The growth trend suggests a persistent expansion in revenue generation over the six-year period.

Total assets

Total assets showed moderate fluctuations but an overall gradual increase over the same time frame. The asset base rose from 115,095 million US dollars in 2019 to 122,370 million US dollars in 2024. Notably, there was a slight decline observed between 2020 and 2022, followed by a recovery and growth through to 2024.

Reported total asset turnover

The reported total asset turnover ratio displayed a positive trend, improving from 0.59 in 2019 and 2020 to 0.69 in 2023 and 0.69 in 2024. This improvement indicates increasing efficiency in utilizing assets to generate sales, with the ratio rising notably especially after 2020.

Adjusted total assets

Adjusted total assets mirrored the pattern of total assets, beginning at 113,792 million US dollars in 2019 and rising to 120,627 million US dollars by 2024. Similar to total assets, there was a slight dip between 2020 and 2022, followed by gradual recovery and growth.

Adjusted total asset turnover

This ratio also showed an improving trend, starting at 0.59 in 2019 and reaching 0.70 in 2024. The adjusted asset turnover consistently outperformed or matched the reported total asset turnover, indicating enhanced operational efficiency based on adjusted asset values.

The analysis of the financial data over the six-year period reveals several noteworthy trends in the company's liquidity position.

Current Assets

Current assets showed an overall fluctuating pattern. After an increase from 22,473 million USD in 2019 to a peak of 27,987 million USD in 2020, the value declined notably in the subsequent two years, reaching 21,653 million USD in 2022. A gradual recovery occurred in the last two years, with current assets rising to 24,709 million USD by 2024.

Current Liabilities

Current liabilities generally trended upwards from 30,011 million USD in 2019 to a high of 35,756 million USD in 2023 before somewhat decreasing to 33,627 million USD in 2024. This rise suggests increasing short-term obligations over the period, with a slight easing in the final year.

Reported Current Ratio

The reported current ratio consistently remained below 1, indicating that current liabilities exceeded current assets throughout the entire period. Despite some improvement in 2020 to 0.85, the ratio declined steadily afterward to its lowest point of 0.63 in 2023. By 2024, there was a modest recovery to 0.73, but it remained below the 2019 level.

Adjusted Current Liabilities and Adjusted Current Ratio

Adjusted current liabilities followed a similar trend as the reported liabilities, increasing from 29,543 million USD in 2019 to 35,582 million USD in 2023 before dropping to 33,461 million USD in 2024. Consequently, the adjusted current ratio mirrored the reported ratio's pattern, reaching its peak of 0.86 in 2020, declining to 0.64 in 2023, and improving slightly to 0.74 in 2024.

Overall, the data indicates a period of increased current liabilities outpacing current assets, leading to weaker liquidity positions evidenced by current ratios consistently below 1. The brief improvement in 2020 suggests some short-term strengthening, potentially linked to external factors influencing asset levels. The decline in liquidity ratios during 2021 through 2023 signals mounting pressure on short-term financial stability, despite a partial recovery in 2024. The company’s ability to revert this trend remains critical to maintaining operational flexibility in the short term.

Total Debt

The total debt exhibited some fluctuation over the observed periods. It increased from approximately $30.1 billion in mid-2019 to a peak near $34.7 billion in mid-2020, then declined through mid-2022 before a subsequent rise in 2023. By mid-2024, total debt decreased again to about $32.5 billion. Overall, the level of debt appears relatively stable with some short-term volatility.

Shareholders' Equity Attributable to Procter & Gamble

Shareholders' equity demonstrated a relatively consistent upward trend. Starting at around $47.2 billion in mid-2019, the equity value experienced minor fluctuations but generally increased, especially gaining momentum in the latest period, reaching approximately $50.3 billion by mid-2024. This suggests gradual growth in the company's net assets attributable to equity holders over time.

Reported Debt to Equity Ratio

The reported debt to equity ratio followed a pattern closely related to the shifts in debt and equity figures. The ratio rose from 0.64 in mid-2019 to 0.75 in mid-2020, indicating an increase in leverage relative to equity during that period. It then tapered down slightly over the next two years but climbed again to 0.74 in 2023 before dropping to 0.65 by mid-2024. This indicates fluctuations in leverage, with a recent trend toward moderation in the company's leverage.

Adjusted Total Debt

Adjusted total debt values reflected a similar movement to reported total debt but at a slightly higher level. After increasing from $31.2 billion in mid-2019 to $35.6 billion in mid-2020, adjusted debt decreased over the following two years before ascending again in 2023. By mid-2024, it slightly declined to about $33.4 billion. This adjusted figure indicates a thoughtfully moderated but somewhat variable leverage base.

Adjusted Total Shareholders' Equity

Adjusted equity values started at $52.5 billion in 2019 and showed mild downward movement through 2020 and 2021, stabilizing near $52 billion afterward. However, the most recent data point indicates a notable increase to approximately $55.5 billion by mid-2024. This suggests an improvement in equity base after a period of relative stability.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio started at 0.59 in 2019 and increased to 0.69 in 2020, demonstrating greater leverage relative to equity during that period. It then decreased gradually to 0.62 by mid-2022 before again rising slightly in 2023. In 2024, this ratio fell to 0.60, indicating a reduction in relative leverage. Overall, leverage measured on an adjusted basis shows a cyclical pattern but tends toward a moderate level by the end of the period.

Total Debt

The total debt showed an initial increase from 30,092 million USD in mid-2019 to 34,720 million USD in mid-2020. Thereafter, it declined to 31,988 million USD by mid-2021 and then remained relatively stable until mid-2022. A subsequent rise was noted in mid-2023, reaching 34,607 million USD, before decreasing again to 32,460 million USD by mid-2024. Overall, total debt exhibited some volatility with alternating increases and decreases during the period.

Total Capital

Total capital increased from 77,286 million USD in mid-2019 to 81,241 million USD in mid-2020. This was followed by a slight decline to 78,366 million USD in mid-2021 and remained nearly constant through mid-2022. From mid-2022 to mid-2024, total capital resumed a gradual upward trend, reaching 82,747 million USD. The overall trend shows moderate growth with a dip around 2021-2022.

Reported Debt to Capital Ratio

The reported debt to capital ratio moved in alignment with total debt and capital changes. It rose from 0.39 in 2019 to a peak of 0.43 in 2020, reflecting the increase in debt relative to capital. This ratio then edged down to 0.40 in 2022 before increasing again to 0.43 in 2023. By mid-2024, it reduced to 0.39, indicating a slight improvement in leverage over the initial period.

Adjusted Total Debt

Adjusted total debt showed a similar pattern to reported total debt but with slightly higher values, starting at 31,235 million USD in 2019 and rising to 35,611 million USD in 2020. It declined to 32,838 million USD in 2021 and remained relatively stable around 32,293 million in 2022. Another increase was recorded in 2023 at 35,424 million USD, followed by a reduction to 33,369 million USD in 2024. The adjustments reflect consistent underlying fluctuations in debt levels over time.

Adjusted Total Capital

Adjusted total capital increased steadily from 83,735 million USD in 2019 to 86,969 million USD in 2020, then declined to 83,709 million USD in 2021. Subsequently, it rose again continuously through to 88,867 million USD in 2024. The adjusted capital figures demonstrate a generally upward trajectory, indicating strengthening capital bases after minor contractions.

Adjusted Debt to Capital Ratio

This ratio followed the trend of adjusted debt and capital, starting at 0.37 in 2019, rising to 0.41 in 2020, then decreasing to 0.39 in 2021 and further to 0.38 in 2022. It increased again to 0.41 in 2023 before declining back to 0.38 in 2024. The fluctuations in this ratio suggest periodic shifts in financial leverage, with the company managing to maintain the adjusted leverage ratio within a relatively narrow range over the years.

Over the observed period, total assets exhibited a gradual increase with some fluctuations, starting from approximately 115.1 billion US dollars in mid-2019 and reaching around 122.4 billion US dollars by mid-2024. The highest asset value was recorded in mid-2024, indicating a modest growth trend in the company's asset base.

Shareholders’ equity attributable to the company showed relative stability between mid-2019 and mid-2023, fluctuating slightly around the range of 46.3 to 46.8 billion US dollars. However, a notable increase occurred by mid-2024, with equity rising to approximately 50.3 billion US dollars, suggesting an improvement in the company's net asset value in the latest period.

The reported financial leverage ratio displayed minor variations throughout the period, initially increasing from 2.44 in mid-2019 to a peak of 2.59 in mid-2020. From then on, a slight decline ensued, culminating in a ratio of 2.43 by mid-2024. This pattern indicates that the company’s reliance on debt relative to equity decreased towards the end of the observed timeframe, potentially reflecting a strengthened balance sheet position.

Adjusted total assets closely mirrored the trend of total assets, starting at approximately 113.8 billion US dollars in mid-2019 and rising steadily to about 120.6 billion US dollars by mid-2024. This consistency underscores the robustness of asset valuation adjustments over time.

Similarly, adjusted total shareholders’ equity decreased from about 52.5 billion US dollars in mid-2019 to around 50.9 billion US dollars in mid-2021, followed by a recovery and increase to approximately 55.5 billion US dollars by mid-2024. This recovery suggests an improved equity position when adjustments are considered.

The adjusted financial leverage ratio parallels the pattern seen in reported leverage, rising from 2.17 in mid-2019 to around 2.31 in mid-2020, and then declining to 2.17 by mid-2024. This stabilization indicates a maintained balance between adjusted assets and equity, supporting the company's financial stability.

Overall, the data reveal steady asset growth, stable to improving equity positions, and a general decrease in financial leverage ratios in the latter years. These trends are indicative of a potentially strengthening financial structure with careful management of debt levels relative to equity.

Net earnings attributable to Procter & Gamble (P&G)

The net earnings showed significant growth from 2019 to 2020, increasing sharply from $3,897 million to $13,027 million. Following this surge, the earnings continued to rise moderately over the subsequent years, reaching $14,879 million by 2024. This indicates a strong recovery and consistent profitability stabilization at a higher level after 2020.

Net sales

Net sales steadily increased year-over-year throughout the entire period. Starting at $67,684 million in 2019, sales grew to $84,039 million by 2024. The growth is consistent, reflecting a positive sales trend and likely effective demand and market performance.

Reported net profit margin

The reported net profit margin experienced a remarkable increase from 5.76% in 2019 to a peak near 18.79% in 2021. After this peak, there was a slight downward trend, with margins decreasing to 17.7% by 2024. Despite the modest decline from the peak, margins remain substantially higher than the 2019 baseline, indicating improved profitability relative to sales.

Adjusted net earnings

Adjusted net earnings followed a similar pattern to reported net earnings but with more pronounced fluctuations. After rising from $3,651 million in 2019 to $11,250 million in 2020, adjusted earnings peaked sharply at $16,329 million in 2021. Afterward, there was a gradual decline to $14,267 million in 2023, followed by a slight recovery to $15,036 million in 2024. This suggests that adjustments may account for some variability in earnings but overall confirm sustained strong performance post-2020.

Adjusted net profit margin

The adjusted net profit margin showed a consistent upward trend from 5.39% in 2019 to a peak of 21.45% in 2021. Afterward, the margin declined to 17.4% in 2023 but recovered slightly to 17.89% in 2024. Similar to the reported margin, adjusted margin improvements indicate enhanced operational efficiency and profitability, despite some margin compression in recent years.

Net Earnings Attributable to Procter & Gamble (P&G)

The net earnings show a strong upward trend from 2019 to 2024, increasing from $3,897 million in 2019 to $14,879 million in 2024. The most significant jump occurred between 2019 and 2020, where net earnings more than tripled. After 2020, earnings continue to grow at a slower, more stable pace, maintaining levels above $14 billion from 2021 onward with a slight increase each year.

Shareholders’ Equity Attributable to Procter & Gamble

Shareholders’ equity remains relatively stable from 2019 through 2023, hovering around $46,000 to $47,000 million. However, in 2024 there is a noticeable increase to approximately $50,287 million, indicating growth in the company’s net asset base during the most recent period.

Reported Return on Equity (ROE)

Reported ROE exhibits a remarkable increase from 8.26% in 2019 to a peak of 31.64% in 2022, followed by a slight decline to 29.59% in 2024. This suggests that the company substantially improved its profitability relative to equity through the early years, with the highest efficiency recorded in 2022, and a minor decrease thereafter.

Adjusted Net Earnings

Adjusted net earnings display a similar upward pattern as reported earnings, rising from $3,651 million in 2019 to a peak of $16,329 million in 2021. However, after 2021, adjusted net earnings decrease slightly and fluctuate, settling at $15,036 million in 2024. This indicates some adjustments may have affected earnings stability in later years.

Adjusted Total Shareholders’ Equity

Adjusted equity shows a slight downward trend between 2019 and 2021, falling from $52,500 million to about $50,871 million, then stabilizes around $51,800 million through 2023. In 2024, there is a significant increase to nearly $55,498 million, reflecting an overall growth in equity after a period of modest decline or stagnation.

Adjusted Return on Equity (ROE)

Adjusted ROE increases significantly from 6.95% in 2019 to 32.1% in 2021, then gradually declines over subsequent years to 27.09% in 2024. Similar to the reported ROE, the adjusted measure indicates a peak in operational efficiency followed by a moderate decrease, suggesting a slight reduction in return relative to equity base in the most recent years.

Net earnings attributable to Procter & Gamble (P&G)

Net earnings exhibited a strong increase from US$ 3,897 million in 2019 to a peak of US$ 14,879 million in 2024. The 2020 figure marked a significant rise to US$ 13,027 million, followed by steady growth and slight fluctuations thereafter, maintaining levels above US$ 14 billion from 2021 onward.

Total assets

Total assets showed a moderate upward trend over the six-year period. Starting from US$ 115,095 million in 2019, assets increased to US$ 122,370 million in 2024. There was a slight decline observed in 2021 and 2022, but the overall movement remained positive with a recovery thereafter.

Reported Return on Assets (ROA)

Reported ROA demonstrated a marked improvement from 3.39% in 2019 to a peak of 12.58% in 2022. After peaking, it stabilized slightly above 12% in 2023 and 2024. This indicates enhanced efficiency in generating earnings from the company's asset base over time.

Adjusted net earnings

Adjusted net earnings showed a substantial increase from US$ 3,651 million in 2019 to US$ 15,036 million in 2024. The trend reveals a consistent upward movement with a notable spike in 2021 (US$ 16,329 million) followed by slight decreases in subsequent years, yet maintaining a high level relative to earlier periods.

Adjusted total assets

Adjusted total assets followed a similar pattern to total assets, increasing from US$ 113,792 million in 2019 to US$ 120,627 million in 2024. Minor fluctuations occurred around 2021 and 2022 but were followed by recovery, indicating stability in asset management when adjusted for certain factors.

Adjusted Return on Assets (Adjusted ROA)

Adjusted ROA improved significantly from 3.21% in 2019 to a peak of 13.95% in 2021. There was a slight decrease in subsequent years, with ROA stabilizing around 12.46% in 2024. This reflects strong operational performance when adjustments are accounted for, with some decline after the 2021 high but overall superior returns compared to the start of the period.