Procter & Gamble Co. (NYSE:PG)

The analysis of the quarterly financial data reveals several noteworthy trends in key profitability and leverage metrics over the observed periods.

Return on Assets (ROA)

The ROA values, available from June 30, 2020 onward, exhibit a generally positive and stable trend. Starting at 10.79%, ROA gradually increased, reaching peaks around the 12.58% to 12.65% range in late 2022 and mid-2024. Minor fluctuations occurred, but the overall trajectory reflects consistent efficiency in asset utilization to generate earnings. The ROA slightly dipped to approximately 11.32% by December 2024 but rebounded to approximately 12.76% by June 2025, indicating resilience and sustained operational effectiveness.

Financial Leverage

Financial leverage ratios show moderate variability, fluctuating between approximately 2.35 and 2.72 throughout the period. Starting at 2.45 in late 2019, leverage increased to a high of 2.72 by December 2021, suggesting a temporary rise in the use of debt relative to equity. Subsequently, leverage decreased gradually, reaching a low near 2.35 by September 2024 before slightly increasing again to 2.41 in June 2025. This pattern indicates a cautious approach toward debt management, with leverage adjustments likely aligned with business strategy and market conditions.

Return on Equity (ROE)

ROE follows an upward trend similar to ROA but with more pronounced volatility. Starting at 28% in mid-2020, it peaked above 33% in late 2022. Following that peak, ROE experienced a gradual decline, bottoming near 27.62% by December 2024. It appears to recover somewhat thereafter, stabilizing around the 29-31% range in early to mid-2025. These fluctuations suggest that while equity profitability remains robust, it is influenced by changing leverage and asset return dynamics over the period.

In summary, the data indicates that the company maintained strong profitability and effective asset utilization, as reflected in stable and comparatively high ROA and ROE levels. Moderate fluctuations in financial leverage suggest strategic adjustments in capital structure but do not appear to have adversely impacted returns materially. The observed trends highlight operational consistency with responsive financial management throughout varying economic conditions.

The financial ratios exhibit notable trends over the periods under review. Overall, the company demonstrates consistent profitability and operational efficiency, with some fluctuations that warrant attention.

Net Profit Margin (%)

The net profit margin data begins from June 30, 2020, showing values predominantly within the 17.0% to 19.0% range. Initially, there is a slight upward trend from 18.36% to 18.97% by June 30, 2021. Subsequently, a mild decline occurs, bottoming around 17.06% by September 30, 2024. The margin recovers thereafter, reaching approximately 18.95% by June 30, 2025. This pattern suggests some pressure on profitability mid-way through the timeline, followed by a recovery toward recent periods.

Asset Turnover (ratio)

Asset turnover values start at 0.59 and exhibit a general upward trend with minor variability. The ratio increases to around 0.70 by June 30, 2024, reflecting improved efficiency in generating revenue from assets over time. A slight dip towards 0.66 around December 31, 2024, is followed by a modest recovery. This indicates effective asset utilization with stabilization near the higher range in the latter periods.

Financial Leverage (ratio)

Financial leverage remains relatively stable around 2.4 to 2.6 over the entire span. Initial values from September 30, 2019, through mid-2020 show moderate fluctuation near 2.45, peaking around 2.72 in December 31, 2021. Thereafter, it trends downward gradually to near 2.35 by March 31, 2025. The slight reduction in leverage may indicate a more conservative capital structure or improved equity financing relative to debt.

Return on Equity (ROE) (%)

The ROE metric, available from June 30, 2020 onwards, indicates strong profitability. It starts at 28% and climbs to a peak of 33.06% by September 30, 2022. After this peak, ROE experiences a mild decline, reaching about 27.62% by September 30, 2024, before rebounding somewhat to approximately 30.71% by March 31, 2025. This trend correlates with net profit margin fluctuations and suggests effective equity utilization despite some pressures in the middle periods.

In summary, the company maintains stable leverage while demonstrating improvements in asset turnover and sustaining solid profitability as reflected in ROE and net profit margin. The mid-term declines in profitability ratios indicate transient challenges, but overall financial health appears resilient with recovery evident in the most recent quarters analyzed.

The financial ratios for Procter & Gamble Co. over the analyzed quarterly periods reveal multiple noteworthy trends related to profitability, efficiency, and leverage.

Tax Burden

The tax burden ratio remains relatively stable throughout the quarters, fluctuating marginally around a level close to 0.80. This stability suggests consistent effective tax rates and limited volatility in tax expenses relative to pre-tax profits.

Interest Burden

The interest burden ratio also shows minor variation but generally trends slightly downward from approximately 0.97 to 0.95 over the examined timeframe. This slight decline could indicate a marginal increase in interest expenses relative to earnings before interest and tax, which may affect net profitability marginally.

EBIT Margin

EBIT margins exhibit relatively minor fluctuations but maintain a general level around 23% to 24%. Peaks occur near mid-2020 and throughout 2023 to early 2024, reaching a high of about 24.9%. This indicates steady operational efficiency and profitability, with some improvement in more recent quarters.

Asset Turnover

Asset turnover ratios show a moderate increasing trend from 0.59 to just above 0.68 in many quarters, peaking near 0.70 in the latest quarters. This improvement suggests enhanced efficiency in using assets to generate revenue over the period, reflecting effective asset management and possible revenue growth without proportional asset increases.

Financial Leverage

Financial leverage ratios fluctuate between approximately 2.35 and 2.72 but generally trend downward in the latest quarters compared to earlier spikes. The decreasing leverage lately indicates a modest reduction in reliance on debt financing, potentially resulting in lower financial risk.

Return on Equity (ROE)

ROE figures present a strong performance over the quarters, generally ranging from 28% to above 32%, with some variability. The highest ROEs are noted around 2021 to early 2022, followed by a modest decrease and slight recovery toward 30% recently. The sustained strong ROE demonstrates a solid capacity to generate shareholder returns and reflects the combined effect of stable profit margins, asset efficiency, and leverage management.

In summary, the company demonstrates stable tax and interest burdens, a consistent EBIT margin with slight recent improvement, and enhanced asset turnover indicating improved operational efficiency. Financial leverage shows a cautious deleveraging trend in recent quarters, while return on equity remains robust, reflecting overall effective capital and operational management during the periods analyzed.

Net Profit Margin

The net profit margin exhibits a relatively stable pattern over the observed periods, with values generally fluctuating between approximately 17% and 19%. Beginning at 18.36% in June 2020, the margin attained a peak near 18.97% shortly after, then experienced a gradual decline reaching a low of about 17.06% in December 2024. Subsequently, it showed signs of recovery, closing at 18.95% by June 2025. This indicates consistent profitability with moderate variability, suggesting the company maintained effective cost management and pricing strategies throughout the timeframe.

Asset Turnover

Asset turnover demonstrates an overall ascending trend initially, starting around 0.59 in June 2020 and rising to a peak close to 0.70 in early 2024. This suggests improved efficiency in utilizing assets to generate sales. However, following this peak, a mild decline is observed toward mid-2025, with ratios decreasing to approximately 0.67. The initial increment implies enhanced operational efficiency, while the later slight decrease may reflect changing asset bases, market dynamics, or investment cycles affecting asset utilization.

Return on Assets (ROA)

Return on assets shows positive growth from about 10.79% in June 2020, climbing steadily to above 12.5% by late 2022. Despite minor fluctuations, the ROA remains relatively strong, evidencing effective use of assets to generate net income. Some oscillations occur thereafter, with values ranging between roughly 11.3% and 12.7%, ending near 12.76% in June 2025. This pattern suggests a sustained capability to generate returns on investment in assets, with occasional variability likely due to external market factors or operational adjustments.

Tax Burden

From the available data starting June 30, 2020, the tax burden ratio has remained relatively stable, fluctuating narrowly between 0.79 and 0.83. This consistency suggests a steady effective tax rate over the observed periods, with only minor declines observed toward the later dates, settling around 0.8.

Interest Burden

The interest burden ratio has also exhibited stability, ranging from 0.95 to 0.98 across the periods shown. There is a slight downward trend starting around mid-2022, moving from approximately 0.98 to 0.95 by late 2024, indicating a modest relative increase in interest expense burden or a slight reduction in operating income before interest and taxes.

EBIT Margin

The Earnings Before Interest and Taxes (EBIT) margin has shown a generally positive trend, with some volatility. Beginning at approximately 22.87% in mid-2020, it peaked near 24.9% by early 2025. The margin displays minor oscillations but an overall improvement, which points to better operational profitability over time.

Asset Turnover

Asset turnover has increased gradually from 0.59 in mid-2020 to approximately 0.7 in mid-2023, then exhibited some fluctuations around 0.66 to 0.69 in the latest periods. This suggests enhanced efficiency in utilizing assets to generate sales up to about 2023, followed by a slight reduction in turnover efficiency in the most recent quarters.

Return on Assets (ROA)

The return on assets has mirrored the positive trends seen in EBIT margin and asset turnover. Starting near 10.79% in mid-2020, ROA generally increased reaching around 12.76% by early 2025. Although minor fluctuations occur, the overall trajectory implies improved profitability relative to asset base, supported by both operational margin enhancements and efficient asset use.

The financial ratios reveal several patterns across the analyzed periods. The Tax Burden ratio remains relatively stable, fluctuating slightly around 0.80 to 0.83, indicating consistent tax expenses relative to earnings before tax over time without significant volatility.

The Interest Burden ratio similarly demonstrates stability, mostly residing between 0.95 and 0.98. This suggests the company maintained a consistent interest expense level relative to earnings before interest and taxes, with minor decreases in recent periods hinting at a slight improvement in interest cost management.

Regarding profitability, the EBIT Margin shows a general pattern of mild fluctuations within a narrow band around 22.5% to 24.9%. There is a gradual increase toward the latter periods, reaching the highest point at 24.9%, which indicates improving operational efficiency or pricing power contributing to enhanced earnings from core operations.

The Net Profit Margin also exhibits a degree of variability, mostly ranging from approximately 17% to 18.9%. While the margin experienced some downward dips around the middle periods, it tends to recover thereafter, with the latest quarters suggesting a return to stronger profitability levels near 18.9%. This pattern reflects the interaction of operating profit trends, tax, and interest expenses over time.

Overall, the data indicates a company managing effective cost control over taxes and interest, while steadily improving operating margins and maintaining stable net profitability. The consistency in these key financial ratios signifies sound financial management and resilience in earnings performance over the analyzed timeframe.