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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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Solvency Ratios (Summary)
Procter & Gamble Co., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 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).
The solvency profile exhibits a period of moderate leverage expansion peaking in early 2023, followed by a corrective phase and subsequent stabilization. Overall, the capital structure remains conservative, characterized by stable debt-to-asset and debt-to-capital ratios, although interest coverage has experienced a notable contraction from its peak levels.
- Debt Utilization Ratios
- The debt-to-equity ratio showed a gradual increase from 0.66 in September 2020 to a peak of 0.81 by March 2023. Following this peak, a deleveraging trend occurred, with the ratio descending to 0.64 by March 2024 before stabilizing between 0.65 and 0.69 through March 2026. Similarly, the debt-to-capital ratio remained tightly range-bound, fluctuating minimally between 0.39 and 0.45, indicating a consistent proportion of debt within the total capital structure. The debt-to-assets ratio followed a parallel trajectory, rising from 0.26 to a high of 0.31 in March 2023, then returning to a steady range of 0.28 to 0.29.
- Financial Leverage
- Financial leverage mirrored the movement of the debt ratios, increasing from 2.49 in late 2020 to a peak of 2.72 in December 2021. A subsequent decline is observed, reaching a low of 2.35 by March 2024. The ratio concluded the analyzed period at 2.36, suggesting a return to a leverage level consistent with the baseline established at the start of the period.
- Interest Coverage Capacity
- A significant shift is observed in the interest coverage ratio. After reaching a peak of 41.99 in June 2022, the ratio entered a sustained decline, dropping to 20.30 by September 2024. This represents a substantial reduction in the margin of safety for interest payments, though the ratio remains high in absolute terms. A modest recovery is noted in the final quarters, with the ratio climbing back to 25.61 by March 2026, indicating a stabilizing capacity to service debt obligations from operating earnings.
Debt Ratios
Coverage Ratios
Debt to Equity
Procter & Gamble Co., debt to equity calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 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 Q3 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =
The solvency profile exhibits a period of fluctuating leverage characterized by a mid-term increase followed by a stabilization phase. While total debt has trended slightly upward over the long term, the concurrent growth in shareholders' equity has effectively moderated the overall debt-to-equity ratio, maintaining a balanced capital structure.
- Debt to Equity Ratio Trends
- The ratio began at 0.66 in September 2020 and experienced a gradual climb, reaching a peak of 0.81 by March 2023. This upward trajectory indicates a period of increased relative indebtedness. Following this peak, a significant deleveraging trend occurred, with the ratio dropping to 0.64 by March 2024. In the final periods leading to March 2026, the ratio stabilized, fluctuating slightly to end at 0.68.
- Total Debt Dynamics
- Total debt levels demonstrated moderate volatility, fluctuating between a low of 29,826 million US$ in March 2021 and a high of 37,026 million US$ in March 2026. A general increase in absolute debt is observable in the latter half of the analyzed period, particularly from December 2023 onward, where debt levels consistently remained above 33,000 million US$.
- Shareholders' Equity Evolution
- Shareholders' equity attributable to the company showed a period of contraction between September 2020 (48,182 million US$) and September 2022 (44,075 million US$). However, from late 2022 through March 2026, there was a sustained and consistent increase in equity, culminating in a period high of 54,505 million US$. This expansion of the equity base acted as the primary counterbalance to rising total debt, facilitating the reduction of the debt-to-equity ratio from its 2023 peak.
Debt to Capital
Procter & Gamble Co., debt to capital calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 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 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
The capital structure exhibits a high degree of stability over the observed period. Total capital has grown steadily, while total debt has fluctuated within a consistent range, resulting in a debt-to-capital ratio that remains remarkably stable and indicates a disciplined approach to leverage.
- Total Debt Trends
- Total debt experienced periodic fluctuations, reaching a minimum of 29,826 million US dollars in March 2021 and climbing to a peak of 37,026 million US dollars by March 2026. These variations suggest active balance sheet management and the cyclical nature of debt issuance and repayment rather than a continuous increase in liabilities.
- Total Capital Expansion
- Total capital demonstrated a consistent long-term upward trajectory, increasing from 79,837 million US dollars in September 2020 to 91,531 million US dollars by March 2026. This growth reflects an expansion of the total funding base available to the entity.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio remained within a narrow band, fluctuating between 0.39 and 0.45. A gradual increase was observed from 2020, peaking at 0.45 in March 2023. Following this peak, the ratio normalized and stabilized around 0.40 through the remainder of the period ending March 2026. This suggests a strategic maintenance of a target capital structure where debt constitutes approximately 40% of the total capital.
Debt to Assets
Procter & Gamble Co., debt to assets calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 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 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
The organization maintains a stable solvency profile characterized by low leverage and a consistent relationship between total debt and total assets over the analyzed period from September 2020 through March 2026. Total debt remains consistently below one-third of total assets, indicating a conservative approach to financial leverage and a strong solvency position.
- Total Debt Trends
- Total debt exhibited moderate fluctuations, starting at 31,655 million USD in September 2020 and reaching a peak of 37,026 million USD by March 2026. A notable period of increase occurred between December 2021 and March 2023, where debt rose from 35,653 million USD to a peak of 36,591 million USD. Following a temporary decline in 2024, debt levels trended upward again in the final year of the period.
- Total Asset Trends
- Total assets remained relatively stable for the first three years, fluctuating within a tight range between 116,282 million USD and 122,531 million USD. A sustained growth phase began in 2024, with assets increasing from 119,598 million USD in December 2023 to a maximum of 128,378 million USD by March 2026. This growth in the asset base suggests expansion or increased valuation of holdings toward the end of the observation period.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio demonstrates minimal volatility, maintaining a range between 0.26 and 0.31. The ratio was most stable at 0.26 during late 2020 and early 2021, followed by a gradual ascent to a peak of 0.31 in March 2023. Since that peak, the ratio has converged and stabilized, fluctuating narrowly between 0.27 and 0.29. The current trend indicates a balanced capital structure where asset growth has largely offset the incremental increase in total debt.
Financial Leverage
Procter & Gamble Co., financial leverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 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 Q3 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =
The financial structure demonstrates a period of initial leverage expansion followed by a sustained trend of deleveraging and equity strengthening over the observed period.
- Total Asset Trajectory
- Total assets exhibited relative stability with a gradual long-term upward inclination. After fluctuating between approximately US$ 116 billion and US$ 122 billion from late 2020 through 2023, assets entered a growth phase, reaching a peak of US$ 128.4 billion by March 2026.
- Shareholders' Equity Dynamics
- A U-shaped trend is evident in the equity attributable to the company. Following a decline from US$ 48.2 billion in September 2020 to a trough of US$ 44.1 billion in September 2022, equity grew steadily. This recovery culminated in an increase to US$ 54.5 billion by March 2026, indicating a strengthened internal capital base.
- Financial Leverage Analysis
- The financial leverage ratio experienced a period of expansion, peaking at 2.72 in December 2021. This increase was primarily driven by the compression of shareholders' equity relative to total assets. From 2022 onward, a consistent downward trend is observed, with the ratio declining to 2.36 by March 2026. This reduction reflects a shift toward a more conservative capital structure and a decreased reliance on external liabilities relative to equity.
The simultaneous growth of total assets and the recovery of shareholders' equity have resulted in an improved solvency profile. The overall reduction in the leverage ratio indicates an enhanced capacity to absorb financial volatility and a more robust balance sheet position at the end of the analyzed period compared to the peak leverage period of 2021.
Interest Coverage
Procter & Gamble Co., interest coverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 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 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= ( + + + )
÷ ( + + + )
=
The solvency profile of the organization, specifically regarding its ability to service debt, exhibits a distinct transition from a period of high coverage to a more compressed, yet stable, position over the analyzed timeframe.
- Earnings Before Interest and Tax (EBIT) Trends
- EBIT demonstrates periodic volatility with a general range between US$ 3,681 million and US$ 6,231 million. After reaching a low in June 2021, operational earnings showed several recovery cycles, with significant peaks observed in September 2023 (US$ 6,027 million), December 2024 (US$ 6,085 million), and September 2025 (US$ 6,231 million). This indicates a sustained capacity to generate operational profit despite quarterly fluctuations.
- Interest Expense Evolution
- A significant escalation in interest obligations is evident starting in the fourth quarter of 2022. From September 2020 to September 2022, interest expenses were relatively low and stable, fluctuating between US$ 106 million and US$ 143 million. Beginning in December 2022, these costs rose sharply to US$ 171 million and continued an upward trajectory, peaking at US$ 248 million in December 2023. For the remainder of the period through March 2026, interest expenses remained elevated, generally fluctuating between US$ 197 million and US$ 240 million.
- Interest Coverage Ratio Analysis
- The interest coverage ratio reflects a two-phase trend. Initially, the ratio improved from 35.05 in September 2020 to a peak of 41.99 in June 2022, signaling an exceptionally strong ability to cover interest payments. Subsequently, a marked decline occurred, with the ratio dropping to 20.30 by September 2024. This deterioration was primarily driven by the sharp increase in interest expenses rather than a decline in EBIT. From December 2024 onward, the ratio entered a phase of stabilization and gradual recovery, trending upward to 25.61 by March 2026.