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
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
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Solvency Ratios (Summary)
Procter & Gamble Co., solvency ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
- Debt to Equity
- The debt to equity ratio shows fluctuations over the observed periods, generally remaining between 0.55 and 0.81. Starting at 0.6 in late 2018, the ratio experiences a peak around 0.8 in late 2021, indicating increased leverage during that time. Post-2021, the ratio shows a modest decline, ending near 0.65 by the first quarter of 2025. Overall, this suggests periodic shifts in the capital structure with a tendency to maintain moderate leverage levels.
- Debt to Capital
- This ratio remains relatively stable between 0.35 and 0.45 throughout the timeframe. Initial figures near 0.37 in late 2018 slowly rise to approximately 0.44 by late 2021, followed by a slight decrease towards 0.40 by early 2025. The stability indicates consistent use of debt within the overall capital mix, with no significant volatility or sudden changes.
- Debt to Assets
- The debt to assets ratio follows a pattern similar to debt to capital, remaining in the range of 0.25 to 0.31. Beginning at 0.26 in the third quarter of 2018, the ratio peaks about 0.31 around early 2023, suggesting a slight increase in debt relative to total assets during that period. Afterwards, the ratio tapers back to approximately 0.28 by early 2025. This moderate variability illustrates a relatively stable asset financing approach, with some increased debt usage during 2022-2023.
- Financial Leverage
- The financial leverage ratio fluctuates moderately, starting at 2.27 and rising up to around 2.72 in late 2021. After this peak, there is a gradual decline, ending at 2.35 by the first quarter of 2025. The increased leverage up to 2021 indicates greater reliance on debt financing, followed by a cautious reduction in leverage in subsequent years, which may reflect strategic deleveraging or improved equity levels.
- Interest Coverage
- The interest coverage ratio shows the most significant positive trend, starting at 12.92 in the first quarter of 2019 and rising substantially to peak values exceeding 41 in the period from early 2022 to late 2022. This improved coverage indicates much stronger earnings relative to interest expenses, reflecting enhanced profitability or reduced interest burdens. From 2023 onward, the ratio declines gradually to around 22 by early 2025, though it remains at a strong level indicating healthy ability to cover interest obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
Procter & Gamble Co., debt to equity calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =
The analysis of the financial metrics over the observed periods reveals several patterns and shifts in the capital structure and equity base.
- Total Debt
- Total debt exhibited fluctuations across the quarters, starting at approximately $31.3 billion in late 2018 and reaching a peak near $36 billion in the first quarter of 2020. Subsequently, it experienced declines and rises, generally oscillating between $31 billion and $36 billion through to early 2025. These variations suggest periodic adjustments in borrowing or debt management strategies, with no consistent trend of either sustained increase or significant deleveraging.
- Shareholders’ Equity Attributable to Procter & Gamble
- Shareholders’ equity showed an overall stable to slightly growing trend. Initially, it measured around $52.2 billion in late 2018, with minor decreases and increases through the subsequent years. A low point is observed around mid-2022, near $44 billion, followed by a recovery and gradual increase, reaching approximately $52.3 billion by early 2025. This suggests relatively stable equity preservation with some periods of contraction potentially due to share repurchases, dividends, or changes in accumulated comprehensive income.
- Debt to Equity Ratio
- The debt to equity ratio reflected movement correlating with changes in debt and equity. Starting at 0.60 in late 2018, the ratio increased to 0.79 in early 2020, indicating higher leverage during this period. Afterward, it oscillated between roughly 0.64 and 0.81, showing a pattern of moderate leverage with no long-term linear trend. Peaks around the first quarter of 2020 and 2023 indicate phases of increased borrowing relative to equity, while declines around late 2021 and early 2024 show periods of relative deleveraging or equity growth.
In summary, the data portrays a company actively managing its debt levels and equity base, with fluctuations in debt and equity balances resulting in varying leverage ratios over time. There are no extreme deviations nor clear directional trends, suggesting a balanced approach to financial management responding to operational and market conditions across the quarters analyzed.
Debt to Capital
Procter & Gamble Co., debt to capital calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
The analysis of the quarterly financial data reveals several key trends concerning the company’s total debt, total capital, and the debt to capital ratio over the period from September 2018 through March 2025.
- Total Debt
- The total debt figures exhibit fluctuations throughout the observed quarters. Initially, debt showed a mild increase from 31,287 million USD in September 2018 to a peak of 36,011 million USD in March 2020. Subsequently, a decline is observed, with debt falling to 29,826 million USD by March 2021. From that point, total debt generally trended upwards again, reaching another high of approximately 36,591 million USD in September 2023. The last quarters indicate a diminishing trend with debt decreasing to 34,141 million USD by March 2025. This pattern suggests cycles of debt increase followed by partial deleveraging phases.
- Total Capital
- Total capital followed a more stable but slightly declining trend in the early periods, dropping from 83,523 million USD in September 2018 to about 73,676 million USD in December 2019. It then increased significantly by March 2020 to 81,551 million USD, after which it fluctuated moderately, generally maintaining values between approximately 77,000 million and 87,993 million USD throughout the remaining quarters. The highest capital value was observed in March 2025, indicating a recovery or expansion of capital base towards the end of the period.
- Debt to Capital Ratio
- The debt to capital ratio starts at 0.37 in September 2018 and shows an increasing tendency, peaking at 0.45 in September 2023. This reflects a relative increase in leverage over the period. After this peak, the ratio declines slightly, stabilizing around 0.40 towards March 2025. The ratio’s fluctuations generally mirror the movements in total debt relative to total capital, indicating that debt levels grew more quickly than capital at various times but then proportionally decreased or capital increased.
- Overall Insights
- The data indicate a cyclical pattern in debt usage, with notable increases during early 2020 and mid-2023, which could be associated with strategic financing decisions or external market conditions. Total capital exhibited relative stability with a modest upward trend towards later periods, suggesting capital strengthening or retained earnings accumulation. The debt to capital ratio's movement points to periods of higher leverage followed by partial rebalancing, reflecting dynamic financial management aimed at optimizing the capital structure over time. Importantly, the company appears to maintain a moderate leverage level, generally below 0.45, which aligns with prudent financial strategy.
Debt to Assets
Procter & Gamble Co., debt to assets calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
- Total Debt
- The total debt levels exhibit fluctuations over the observed periods, with values ranging from approximately 28 billion to over 36 billion US dollars. Initially, debt was around 31.3 billion in late 2018, with a general increase peaking near 36 billion in early 2020. Following this peak, debt levels show a fluctuating downward trend with intermittent rises, reaching approximately 34.1 billion by the first quarter of 2025. Periods such as late 2019 and mid-2022 show noticeable decreases, while certain quarters, notably early 2020 and early 2023, mark significant increases.
- Total Assets
- Total assets display relative stability with modest fluctuations within a range approximately between 111 billion and 126 billion US dollars across the examined timeframe. The asset base slightly declines from about 118 billion in late 2018 to approximately 116 billion towards the end of 2022, then experiences an upward trend, rising to roughly 126 billion in the first quarter of 2025. This reflects a generally steady asset position with some periods of growth, particularly in the later years.
- Debt to Assets Ratio
- The debt to assets ratio varies between 0.25 and 0.31 during the analyzed quarters, indicating moderate leverage. Initially, the ratio remains near 0.26 with slight fluctuations moving into 2019 and 2020. A notable increase to 0.30 occurs in early 2020, coinciding with the period of highest total debt. Subsequent quarters show a slight reduction toward 0.26-0.27, but a gradually increasing leverage trend emerges from late 2021 into 2023, peaking near 0.31. By the end of the period, the ratio decreases somewhat to about 0.28, suggesting some management of leverage despite earlier rises.
- Overall Trends and Insights
- Overall, the data reveal a pattern of rising debt levels through early 2020, likely reflecting strategic financial decisions possibly related to external economic factors. Total assets remain relatively stable with slight growth toward the end of the period. The debt to assets ratio confirms periods of increased leverage especially around early 2020 and into 2023, followed by modest deleveraging efforts. The fluctuations in debt and leverage, contrasted with steadier asset levels, suggest active debt management and a focus on balancing financial structure while maintaining asset base integrity over the examined years.
Financial Leverage
Procter & Gamble Co., financial leverage calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =
The analysis of the quarterly financial data reveals several notable trends and fluctuations in the key financial metrics over the observed periods.
- Total Assets
- The total assets displayed a general fluctuation within the range of approximately $111 billion to $126 billion. The initial period started at a value of around $118 billion and experienced a moderate decrease reaching a low near $111 billion by the end of 2019. Subsequently, there was a period of recovery with assets climbing back close to $120 billion in early 2020. From 2021 onwards, the asset base remained relatively stable, fluctuating slightly but maintaining a band roughly between $116 billion and $126 billion. Notably, the highest recorded value was near $126.5 billion around the first quarter of 2025, indicating moderate growth or asset acquisition towards the end of the timeframe.
- Shareholders’ Equity Attributable to Procter & Gamble
- Shareholders' equity demonstrated variability with a clear downward trajectory from late 2018 through much of 2019, declining from approximately $54 billion to about $45.5 billion. This was followed by a period of relative stability fluctuating slightly around $45 billion to $48 billion through 2020 and 2021. A dip occurred again around late 2022 falling to just above $44 billion. However, from early 2023 to mid-2024, equity levels showed an upward trend, climbing steadily to exceed $52 billion by early 2025. This pattern may suggest periods of reduced retained earnings or dividends impacting equity in the earlier timeline, with recovery or capital improvements manifesting in the later periods.
- Financial Leverage Ratio
- The financial leverage ratio, which measures the proportion of total assets financed by equity, fluctuated generally between 2.2 and 2.7 during the measured quarters. Initially, leverage was around 2.27 and increased to a peak near 2.72 at the end of 2021, indicating higher reliance on debt or liabilities relative to equity. Following this peak, the ratio gradually decreased towards approximately 2.35 by early 2025, suggesting a gradual deleveraging or improvement in the equity base relative to liabilities. The reduction in leverage in the final periods aligns with the increase in shareholders' equity, reflecting possibly strengthened financial stability or capital structure optimization efforts.
Overall, the data depict a company experiencing moderate asset base fluctuations with a relatively stable total asset base toward the later periods. Shareholders’ equity faced downward pressure during certain intervals but recovered significantly by the end of the timeframe, which contributed to a corresponding decrease in financial leverage, indicating potentially improved solvency and financial health in the most recent quarters analyzed.
Interest Coverage
Procter & Gamble Co., interest coverage calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= ( + + + )
÷ ( + + + )
=
- Earnings before interest and tax (EBIT)
- The EBIT values show considerable fluctuations over the observed quarters. The data begins with moderately stable figures around 4,000 to 4,500 million USD from late 2018 through early 2019, with notable volatility in mid-2019, including a significant negative value at June 30, 2019 (-4,954 million USD). Subsequent quarters show a recovery with EBIT rebounding to positive territory and generally maintaining levels between approximately 3,500 and 6,000 million USD. Beginning in late 2020, EBIT demonstrates an upward trend with peaks reaching above 6,000 million USD during late 2023 and early 2025. Overall, the trend suggests a recovery period after the mid-2019 dip, with EBIT exhibiting growth and stability in more recent periods.
- Interest Expense
- Interest expenses fluctuate moderately throughout the periods, remaining mostly in the range of 100 to 150 million USD in the early part of the dataset. Starting from mid-2020, interest expenses begin to increase steadily, reaching values above 200 million USD in multiple subsequent periods, peaking near 248 million USD. This upward trend in interest expense suggests an increasing cost of debt or higher borrowing levels in recent years.
- Interest Coverage Ratio
- The interest coverage ratio is missing or not reported in the earliest periods but shows robust and improving coverage starting from June 2019. Initially, the ratio is in the low teens but quickly rises to an upward range of approximately 30 to 40 by late 2019 and early 2020, indicating a stronger ability to meet interest obligations from operating earnings. From early 2021 onward, the ratio generally peaks above 40 and remains mostly above 20, though there is a gradual decline beginning around 2021 through 2024. Despite this decline, the interest coverage remains well above the critical threshold of 1, reflecting strong earnings relative to interest expenses over the duration.
- Overall Analysis
- The overall financial performance reveals a period of volatility around mid-2019, marked by a sharp negative EBIT value, possibly due to extraordinary events or charges. Recovery and growth in EBIT follow this period, supported by strong operating earnings. Interest expenses have incrementally increased over time but have not compromised interest coverage significantly, which remains at comfortable levels indicating adequate earnings to cover interest costs. The gradual decline in interest coverage in recent years corresponds with rising interest expenses but is counterbalanced by sustained EBIT levels, suggesting continued operational strength despite increased financial costs.