Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Aggregate Accruals
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Solvency Ratios (Summary)
Procter & Gamble Co., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
- Debt to Equity
- The debt to equity ratio fluctuated moderately over the observed periods, starting at 0.66 and showing a peak around December 2021 at 0.8. Subsequent periods saw a gradual decline, reaching a low of 0.64 around March 2024, followed by a slight increase towards 0.67 by September 2025. Overall, the ratio indicates a moderate leverage position with some variability but no extreme deviations.
- Debt to Capital
- This ratio remained relatively stable across all periods, oscillating narrowly between 0.39 and 0.45. It peaked marginally in the quarters ending December 2021 and March 2023, then gradually declined to around 0.4 towards the end of the dataset. Such stability suggests consistent capital structure management without significant shifts in the balance between debt and equity financing.
- Debt to Assets
- The debt to assets ratio demonstrated a slight upward trend over time, beginning at 0.26 and increasing to around 0.28 to 0.31 during intermediate periods, before settling near 0.28 towards the latest quarters. This indicates a mild increase in the proportion of assets financed through debt but remains at moderate levels, reflecting a controlled risk exposure with assets predominantly supported by stable financing.
- Financial Leverage
- Financial leverage ratios started around 2.49, rising to peaks near 2.7 in early 2022, before a downward trend ensued through 2024, reaching lows approximately at 2.35. The ratio then stabilized around 2.4 towards the end of the timeline. This suggests a modest reduction in leverage intensity after the peak, implying an effort to optimize capital structure and reduce reliance on borrowed funds.
- Interest Coverage
- The interest coverage ratio experienced a notable decline over the course of the data, commencing at a high of 35.05 and gradually decreasing through most periods, reaching its lowest at approximately 20.3 around early 2025. However, a slight recovery appeared in the last recorded quarters, edging back up to about 25.3. While the company maintained the ability to comfortably cover its interest expenses, the trend indicates increasing interest costs relative to earnings or reduced earnings capacity before interest and taxes.
Debt Ratios
Coverage Ratios
Debt to Equity
Procter & Gamble Co., debt to equity calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =
The analysis of the quarterly financial data reveals several notable trends in the capital structure and financial leverage over the reported periods.
- Total Debt
-
Total debt values exhibit some fluctuation throughout the observed quarters. Beginning at approximately $31.7 billion, debt decreases slightly through early 2021, then rises to a peak around late 2021 at $35.7 billion. Following this peak, total debt retreats intermittently, with minor oscillations, generally hovering between approximately $31.9 billion and $36.0 billion in subsequent quarters. The data indicates periodic increases and decreases rather than a consistent directional trend, suggesting active management of debt levels possibly in response to financial strategy or market conditions.
- Shareholders’ Equity Attributable to the Company
-
Shareholders' equity shows a moderately stable to upward trend over the reported intervals. Starting at about $48.2 billion, equity values dip slightly in the first half of 2021 but generally experience incremental growth from mid-2021 onward. Towards the latest quarters, equity rises steadily, reaching around $53.3 billion. This progression indicates a strengthening equity base, reflecting retained earnings, possible capital injections, or appreciation in comprehensive income. The sustained increase in equity over time contributes positively to the company's financial stability and capacity for enduring leverage.
- Debt to Equity Ratio
-
The debt-to-equity ratio illustrates the company's balance between debt financing and shareholder equity over time. Initially positioned at 0.66, the ratio experiences a moderate rise, peaking around 0.81 in early 2023, which correlates with increased indebtedness relative to equity during that period. Subsequent quarters demonstrate a downward correction, with ratios settling around 0.64 to 0.67 towards the most recent reports. This fluctuation indicates the company’s variable debt reliance, but the ratio remains generally within a moderate range, evidencing a balanced capital structure without excessive leverage.
Overall, the financial data suggests a company actively managing its capital structure by adjusting debt levels in response to operational needs or market dynamics, while maintaining a steady improvement in shareholders’ equity. The debt-to-equity ratio movements reflect a controlled approach to leverage, keeping it within reasonable bounds to sustain financial flexibility and mitigate risk.
Debt to Capital
Procter & Gamble Co., debt to capital calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
- Total Debt
- The total debt of the company exhibits considerable fluctuations over the analyzed quarters. Starting at approximately $31.7 billion in the third quarter of 2020, total debt showed a decreasing trend into the first quarter of 2021, reaching about $29.8 billion. Subsequently, it increased again, peaking around $35.7 billion at the end of 2021. This cyclical pattern of decrease and increase repeats over the periods, with values ranging mostly between $31 billion and $36 billion. Notably, towards the latter part of the timeline, debt figures tend to cluster near the higher end, around $34 billion to $36 billion, indicating a relatively stable but elevated debt position compared to earlier periods.
- Total Capital
- Total capital remains relatively stable throughout most periods, with values generally between $76.4 billion and $87.0 billion. From the third quarter of 2020 through mid-2022, capital fluctuates moderately without a clear directional trend, showing some mild decreases and increases corresponding to movements in total debt. A noticeable increase is seen starting from mid-2023 onwards, with capital generally trending upwards towards nearly $89.2 billion by the third quarter of 2025. This suggests an overall growth in the capital base in the later periods of the timeline.
- Debt to Capital Ratio
- The debt to capital ratio varies notably within a narrow band between 0.39 and 0.45 over the quarters. The ratio begins near 0.40, dips slightly early in the period, and peaks at 0.45 in early 2023. After this peak, the ratio decreases gradually and stabilizes around 0.40 to 0.41 through the subsequent quarters. The fluctuations in this ratio mirror the cyclicality observed in total debt against a relatively more stable capital base, indicating that leverage levels are maintained within a consistent range with minor deviations.
- Overall Insights
- The financial data reflects a company managing its debt levels dynamically, possibly in response to operational needs or market conditions, while maintaining a stable capital structure. The observed cyclic patterns in debt suggest periodic refinancing, repayment, or strategic borrowing activities. The relatively steady debt to capital ratio demonstrates disciplined financial leverage management. The increasing trend in total capital towards the later periods indicates potential growth or investment activities strengthening the company's financial foundation.
Debt to Assets
Procter & Gamble Co., debt to assets calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
The analysis of the quarterly financial data over the observed periods reveals several notable trends regarding the debt and asset structure.
- Total Debt
- Total debt exhibited fluctuations but generally remained within a range between approximately 31 billion and 36 billion US dollars throughout the reported quarters. The debt level initially showed a slight decline from 31.7 billion to around 29.8 billion US dollars in early 2021, followed by a gradual increase peaking near 36.6 billion by the first quarter of 2023. Subsequently, the debt level showed a mix of increases and declines, with values ending near 36 billion US dollars by the third quarter of 2025. This pattern suggests periodic adjustments in financing strategies or debt management, but no strong directional trend upward or downward dominates the period.
- Total Assets
- Total assets appeared relatively stable, mostly fluctuating around the 120 billion US dollars mark with minor volatility. There was a slight dip observed in mid-2022, reaching a low near 116 billion US dollars, followed by a recovery and gradual increase to a peak near 127.6 billion in the third quarter of 2025. This gradual increase towards the latter periods indicates growth or acquisition activity contributing to asset expansion, although the movements were moderate.
- Debt to Assets Ratio
- The debt to assets ratio ranged between 0.26 and 0.31, showing slight variation but overall stability. An increase in the ratio was observed near the end of 2022 and early 2023, approaching 0.31, reflecting proportionally higher debt relative to assets during this timeframe. This was followed by a moderate decline back to around 0.28 toward the end of the monitoring period. The ratio's stability around the high twenties suggests maintained leverage levels without aggressive shifts in the capital structure.
In summary, the financial leverage of the company remained fairly consistent with moderate fluctuations. Asset levels showed resilience with gradual growth in later periods, whereas total debt was managed within a controlled range, with occasional upticks that were balanced by subsequent reductions. Overall, the company's financial structure conveys a balanced approach to leverage and asset growth across the examined quarterly periods.
Financial Leverage
Procter & Gamble Co., financial leverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =
- Total Assets
- The total assets exhibited a relatively stable pattern over the observed quarters, with values mostly fluctuating between approximately $116 billion and $127 billion. Initially, there was a slight decline from around $120 billion in late 2020 to a low of about $116 billion in late 2022. Subsequently, total assets began to recover, increasing steadily and reaching a peak of approximately $127.6 billion by the third quarter of 2025. This suggests a moderate expansion of the asset base in the latter periods after a phase of minor contraction.
- Shareholders’ Equity Attributable to Procter & Gamble
- Shareholders’ equity showed a downward trend in the initial half of the timeline, decreasing from approximately $48.2 billion at the end of September 2020 to a trough near $44.1 billion by the third quarter of 2022. Following this period, equity levels displayed a general upward trajectory, consistently rising to a peak close to $53.3 billion by the third quarter of 2025. This recovery indicates strengthened equity capital and potentially improved retained earnings or capital inflows in recent quarters.
- Financial Leverage
- Financial leverage ratios fluctuated within a range of approximately 2.35 to 2.72 throughout the observed period. Initially, leverage increased from about 2.49 in September 2020 to a peak near 2.72 by the end of 2021, indicating a rise in the relative amount of debt compared to equity. Thereafter, a gradual decline followed, reducing leverage to approximately 2.35–2.4 in the 2024–2025 period. This decrease suggests a moderate deleveraging or increase in equity relative to debt, reflecting a potentially more conservative capital structure in the latter periods.
Interest Coverage
Procter & Gamble Co., interest coverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= ( + + + )
÷ ( + + + )
=
- Earnings Before Interest and Tax (EBIT)
- Over the observed periods, EBIT demonstrates notable volatility with fluctuations corresponding to each quarter's performance. Initially, EBIT declined from 5,433 million USD in late September 2020 to a low of 3,681 million USD by mid-2021. A recovery trend followed, with values generally climbing back above the 5,000 million USD mark by late 2021 and late 2022. Significant peaks occurred in late 2023 and the final quarter of 2025, reaching 6,027 million USD and 6,231 million USD respectively. Periods of decline typically coincided with mid-year quarters, indicating potential seasonal or cyclical factors impacting earnings.
- Interest Expense
- Interest expense showed a gradual upward trend across the timeframe. Starting from 136 million USD in the third quarter of 2020, this figure rose steadily with some acceleration noted from late 2021 through early 2023, peaking at 248 million USD in the final quarter of 2023. Thereafter, a slight decrease occurred, with values moderating to approximately 197 million USD by the third quarter of 2025. The overall increase suggests either higher borrowing costs or an increased debt burden during the middle years, followed by some reduction or stabilization in the latter periods.
- Interest Coverage Ratio
- The interest coverage ratio reveals a declining trend over the extended period. It started at a robust level above 35 times interest expenses in September 2020, maintaining values frequently above 30 through 2020 and early 2021. However, from 2022 onward, there is a steady downward trajectory reaching a low point of 20.3 times in the third quarter of 2024. A mild recovery trend follows towards the end of the series, with the ratio increasing to around 25.32 by the third quarter of 2025. This decline reflects the combination of falling EBIT in some quarters alongside rising interest expenses, indicating reduced capacity to cover interest costs from operating earnings over time.