Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Procter & Gamble Co., debt and solvency ratios

Ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Procter & Gamble Co.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Procter & Gamble Co.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Procter & Gamble Co.’s debt to assets ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Procter & Gamble Co.’s financial leverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Procter & Gamble Co.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Procter & Gamble Co., debt to equity calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Debt due within one year
	Long-term debt, excluding due within one year
	Total debt

	Shareholders’ equity attributable to Procter & Gamble
	Ratio
	Debt to equity¹
	Benchmarks
	Debt to Equity, Industry
	Consumer Goods

¹ 2019 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
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Ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Procter & Gamble Co.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Procter & Gamble Co., debt to capital calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Debt due within one year
	Long-term debt, excluding due within one year
	Total debt
	Shareholders’ equity attributable to Procter & Gamble
	Total capital
	Ratio
	Debt to capital¹
	Benchmarks
	Debt to Capital, Industry
	Consumer Goods

¹ 2019 Calculation
Debt to capital = Total debt ÷ Total capital
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Ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Procter & Gamble Co.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Procter & Gamble Co., debt to assets calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Debt due within one year
	Long-term debt, excluding due within one year
	Total debt

	Total assets
	Ratio
	Debt to assets¹
	Benchmarks
	Debt to Assets, Industry
	Consumer Goods

¹ 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= hidden ÷ hidden = hidden

Ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Procter & Gamble Co.’s debt to assets ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Procter & Gamble Co., financial leverage calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Total assets
	Shareholders’ equity attributable to Procter & Gamble
	Ratio
	Financial leverage¹
	Benchmarks
	Financial Leverage, Industry
	Consumer Goods

¹ 2019 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= hidden ÷ hidden = hidden

Ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Procter & Gamble Co.’s financial leverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Procter & Gamble Co., interest coverage calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Net earnings attributable to Procter & Gamble
	Add: Net income attributable to noncontrolling interest
	Less: Net earnings (loss) from discontinued operations
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Ratio
	Interest coverage¹
	Benchmarks
	Interest Coverage, Industry
	Consumer Goods

¹ 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= hidden ÷ hidden = hidden

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Procter & Gamble Co.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

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Procter & Gamble Co. (PG)

Long-term Debt and Solvency Analysis