Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Procter & Gamble Co., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
The investment activity ratios indicate a period of moderate efficiency gains followed by a gradual decline in fixed asset and equity productivity toward the end of the observed period.
- Net Fixed Asset Turnover
- A trend of improvement was observed between 2021 and 2024, with the ratio increasing from 3.51 to a peak of 3.79. However, a contraction occurred in the final two years, falling to 3.43 by June 30, 2026. This pattern is mirrored in the turnover ratio including operating lease right-of-use assets, which reached 3.65 in 2022 and 2024 before declining to 3.32 in 2026. This suggests a decrease in the revenue-generating capacity of fixed assets in the latter portion of the timeline.
- Total Asset Turnover
- Total asset utilization remained relatively stable, exhibiting a slight overall upward trajectory. The ratio rose from 0.64 in 2021 to 0.69 by 2024, with a marginal dip to 0.67 in 2025 before returning to 0.69 in 2026. This consistency indicates a steady management of the total asset base in relation to net sales.
- Equity Turnover
- Equity productivity experienced an initial increase, reaching a peak of 1.75 in 2023. Following this peak, a consistent downward trend was observed, with the ratio declining to 1.61 by June 30, 2026. This indicates that the efficiency of generating sales from shareholders' equity has diminished over the last three years of the analyzed period.
Net Fixed Asset Turnover
Procter & Gamble Co., net fixed asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
1 2026 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
The financial trajectory from June 30, 2021, to June 30, 2026, is characterized by consistent growth in net sales and a strategic shift in capital investment, which has directly influenced the net fixed asset turnover ratio.
- Revenue and Asset Growth Patterns
- Net sales exhibit a steady upward trend, increasing from 76,118 million USD in 2021 to 87,032 million USD by 2026. Concurrently, net property, plant, and equipment remained relatively stable between 2021 and 2024, fluctuating within a narrow range of 21,195 million USD to 22,152 million USD. However, a notable acceleration in capital investment is observed after June 30, 2024, with net fixed assets rising to 25,360 million USD by 2026.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio demonstrates a period of increasing efficiency followed by a decline. From 2021 to 2024, the ratio improved from 3.51 to a peak of 3.79, indicating that the company successfully generated higher sales volumes per unit of fixed asset investment. This phase suggests optimized utilization of existing capacity.
- Investment Impact and Efficiency Reversal
- A downward trend in asset turnover is observed starting in 2025, with the ratio falling to 3.53 and further declining to 3.43 by 2026. This contraction correlates with the significant increase in net property, plant, and equipment. The decrease in the ratio suggests that the growth in fixed asset investment has outpaced the corresponding growth in net sales during the final two years of the period, a pattern typical of a capacity expansion phase where new assets have not yet reached full revenue-generating potential.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Procter & Gamble Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
1 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
The relationship between net sales and net fixed assets exhibits a period of increasing efficiency followed by a gradual decline in asset productivity. While net sales demonstrate a consistent upward trajectory over the observed six-year period, the growth rate of fixed assets has outpaced revenue growth in the final two years, leading to a reduction in the net fixed asset turnover ratio.
- Net Sales Growth
- A steady increase in revenue is observed, rising from 76,118 million US dollars in 2021 to 87,032 million US dollars by 2026. This consistent growth indicates a sustained expansion in market reach or pricing power over the period.
- Fixed Asset Investment Trends
- Property, plant and equipment, including right-of-use assets, remained relatively stable between 2021 and 2024, fluctuating between 21,955 million and 23,027 million US dollars. However, a notable acceleration in investment occurred between 2024 and 2026, with asset values climbing to 26,206 million US dollars, suggesting a significant expansion of the productive capacity or long-term lease obligations.
- Net Fixed Asset Turnover Performance
- The turnover ratio initially improved from 3.38 in 2021 to a peak of 3.65 in 2022, driven by sales growth paired with a slight reduction in the asset base. Efficiency remained stable through 2024, maintaining a ratio of approximately 3.65. A reversal occurred in 2025 and 2026, where the ratio declined to 3.40 and 3.32, respectively. This downward trend indicates that recent investments in fixed assets have not yet translated into proportional increases in net sales, resulting in lower asset utilization efficiency compared to the 2022-2024 period.
Total Asset Turnover
Procter & Gamble Co., total asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
1 2026 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
The financial trajectory from 2021 to 2026 is characterized by a consistent increase in net sales and a general expansion of the total asset base, reflecting a period of sustained growth and operational scaling.
- Total Asset Turnover Trend
- The total asset turnover ratio exhibited an overall upward trend, improving from 0.64 in 2021 to 0.69 by 2026. A significant efficiency gain was observed between 2021 and 2022, when the ratio rose to 0.68. This level of efficiency remained relatively stable over the following years, peaking at 0.69 in 2024, experiencing a slight moderation to 0.67 in 2025, and returning to 0.69 in 2026.
- Revenue and Asset Dynamics
- Net sales demonstrated uninterrupted growth, increasing from 76,118 million US$ in 2021 to 87,032 million US$ in 2026. Total assets grew from 119,307 million US$ to 126,521 million US$ over the same period, although a brief contraction was noted in 2022. The fact that the asset turnover ratio improved while the asset base expanded indicates that revenue growth has generally outpaced the investment in new assets, signifying increased productivity of the company's resource base.
- Operational Efficiency Insights
- The stabilization of the turnover ratio between 0.67 and 0.69 from 2022 through 2026 suggests that the organization has reached a steady state of asset utilization. The marginal decline observed in 2025 indicates a period where the growth in total assets slightly exceeded the growth in net sales, which was subsequently corrected by 2026 as sales growth accelerated to 87,032 million US$.
Equity Turnover
Procter & Gamble Co., equity turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
1 2026 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity attributable to Procter & Gamble
= ÷ =
The financial trajectory from 2021 to 2026 is characterized by a consistent expansion in both revenue and the equity base, although the efficiency of capital utilization exhibits a non-linear trend over the period.
- Net Sales Performance
- A steady upward trend is observed in net sales, which increased from US$ 76,118 million in 2021 to US$ 87,032 million by 2026. This indicates a continuous growth in top-line revenue throughout the analyzed timeframe.
- Shareholders' Equity Evolution
- Shareholders' equity attributable to the company showed modest growth between 2021 and 2023, followed by a more pronounced acceleration from 2024 onward. The total equity rose from US$ 46,378 million in 2021 to US$ 54,081 million by 2026.
- Equity Turnover Dynamics
- The equity turnover ratio initially improved, rising from 1.64 in 2021 to a peak of 1.75 in 2023. Subsequently, a gradual decline is observed, with the ratio falling to 1.67 in 2024, 1.62 in 2025, and reaching 1.61 by 2026. This inversion indicates that in the latter three years, the growth rate of shareholders' equity exceeded the growth rate of net sales, resulting in a reduction in the efficiency with which equity is utilized to generate revenue.