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.
Long-term Activity Ratios (Summary)
Procter & Gamble Co., long-term (investment) activity ratios
Based on: 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), 10-K (reporting date: 2020-06-30).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a general upward trend from 3.43 in 2020 to a peak of 3.79 in 2024, indicating improved efficiency in utilizing fixed assets to generate sales. However, a slight decline to 3.53 is observed in 2025, suggesting a potential decrease in asset utilization efficiency during the most recent period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted measure follows a similar pattern to the standard net fixed asset turnover, increasing from 3.29 in 2020 to 3.65 in 2024, before declining to 3.40 in 2025. This suggests that incorporating operating leases and right-of-use assets does not significantly alter the trend, reflecting consistent asset management practices across the periods.
- Total Asset Turnover
- Total asset turnover improves steadily from 0.59 in 2020 to 0.69 in 2024, reflecting enhanced efficiency in generating revenue from total assets. A marginal decline to 0.67 in 2025 indicates a slight reduction in overall asset productivity in the latest year measured.
- Equity Turnover
- Equity turnover increases from 1.53 in 2020 to a high of 1.75 in 2023, demonstrating increasing efficiency in using shareholders' equity to generate sales. However, this is followed by a decline to 1.67 in 2024 and further to 1.62 in 2025, suggesting a moderation in equity utilization efficiency after 2023.
Net Fixed Asset Turnover
Procter & Gamble Co., net fixed asset turnover calculation, comparison to benchmarks
Based on: 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), 10-K (reporting date: 2020-06-30).
1 2025 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 84,284 ÷ 23,897 = 3.53
- Net Sales
- The net sales figures demonstrate a consistent upward trend over the period, increasing from $70,950 million in 2020 to $84,284 million projected in 2025. This steady growth indicates sustained revenue expansion, with the most notable increments occurring between 2020 and 2022 and a slight tapering from 2023 onwards.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment reflects a general incremental pattern, rising from $20,692 million in 2020 to an estimated $23,897 million by 2025. There is minor fluctuation in 2022 with a slight decline compared to 2021, but the overall trajectory remains upward, signaling continued investment in fixed assets.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures the efficiency of fixed asset use in generating revenue, shows a growing trend from 3.43 in 2020 to a peak of 3.79 in 2024, indicating improving asset utilization. However, the ratio declines to 3.53 in 2025, suggesting a potential decrease in efficiency, despite continued asset growth.
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: 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), 10-K (reporting date: 2020-06-30).
1 2025 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)
= 84,284 ÷ 24,822 = 3.40
- Net Sales
- Net sales show a consistent upward trend over the observed periods. Starting at 70,950 million US dollars in mid-2020, sales increased each year, reaching 84,284 million US dollars by mid-2025. The growth pace appears steady though marginally slowing between the final two periods.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment, including operating lease right-of-use assets, exhibits gradual growth with some fluctuation. From 21,542 million US dollars in mid-2020, the value rose to 24,822 million US dollars by mid-2025. A slight decrease is observable between 2021 and 2022, but the overall trend remains positive with an increase thereafter, indicating a moderate expansion or reinvestment in fixed assets.
- Net Fixed Asset Turnover ratio
- The net fixed asset turnover ratio shows an overall improvement from 3.29 in 2020 to a peak of 3.65 in 2022 and 2024, indicating more efficient use of fixed assets to generate sales in those years. However, a slight decline to 3.40 is noted in 2025, which might suggest either a relative increase in fixed assets without proportional sales growth or a minor decreasing efficiency in asset utilization in the latest period.
- Summary Insights
- The company demonstrates a generally positive growth trajectory in sales alongside incremental investments in fixed assets. The net fixed asset turnover ratio improvements in the early and mid-periods indicate enhanced operational efficiency, though a minor dip in the latest period could warrant monitoring. Overall, the data reflects a stable expansion in both operational scale and asset base with effective asset utilization over the majority of the period.
Total Asset Turnover
Procter & Gamble Co., total asset turnover calculation, comparison to benchmarks
Based on: 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), 10-K (reporting date: 2020-06-30).
1 2025 Calculation
Total asset turnover = Net sales ÷ Total assets
= 84,284 ÷ 125,231 = 0.67
- Net Sales
- Net sales showed a consistent upward trend from 2020 through 2025. Starting at 70,950 million USD in 2020, sales increased steadily each year, reaching 84,284 million USD by 2025. The growth appears relatively stable, with annual increments reflecting moderate expansion in revenue generation over the period.
- Total Assets
- Total assets experienced slight fluctuations but overall demonstrated a gradual increase across the six-year horizon. From 120,700 million USD in 2020, there was a decline to 117,208 million USD by 2022, followed by a recovery and subsequent growth to 125,231 million USD in 2025. This indicates a cautious approach to asset management with some asset optimization efforts early on, shifting to incremental asset accumulation in later years.
- Total Asset Turnover
- The total asset turnover ratio, which measures sales efficiency relative to asset base, improved from 0.59 in 2020 to a peak of 0.69 in 2024 before slightly declining to 0.67 in 2025. The increase suggests that the company became more effective in generating sales from its assets over time. The slight dip in the final year might reflect expanding assets that outpaced sales gains or other operational factors affecting asset utilization.
Equity Turnover
Procter & Gamble Co., equity turnover calculation, comparison to benchmarks
Based on: 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), 10-K (reporting date: 2020-06-30).
1 2025 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity attributable to Procter & Gamble
= 84,284 ÷ 52,012 = 1.62
The financial data for the company over the period from June 30, 2020, to June 30, 2025, exhibits several notable trends in terms of net sales, shareholders’ equity attributable to the company, and equity turnover ratio.
- Net Sales
- Net sales demonstrated a consistent upward trajectory across the six-year period. Starting at $70,950 million in 2020, net sales increased annually to reach $84,284 million by 2025. The growth rate appears steady but slightly decelerates in the latter years, with the smallest increase observed between 2024 and 2025. Overall, this suggests stable revenue growth with potential maturity in sales expansion as the market or company approaches saturation.
- Shareholders’ Equity Attributable to Procter & Gamble
- The shareholders’ equity showed relatively little fluctuation from 2020 through 2023, maintaining a level near $46,500 million. However, from 2023 onward, equity increased significantly, rising to $50,287 million in 2024 and further to $52,012 million in 2025. This increase in equity in the last two years could indicate enhanced retained earnings or capital infusion, reflecting strengthened financial stability or reinvestment strategies by the company.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how effectively the company uses shareholders' equity to generate revenue, increased steadily from 1.53 in 2020 to a peak of 1.75 in 2023. Subsequently, it declined moderately to 1.67 in 2024 and further to 1.62 in 2025. This pattern suggests improved efficiency in utilizing equity up to 2023, followed by a slight reduction in efficiency, possibly due to the acceleration in equity growth outpacing net sales growth during the last two years.
In summary, the company experienced steady revenue growth and initially stable equity levels, followed by a notable increase in shareholders' equity in the last two years. The equity turnover ratio reflects a peak in operational efficiency in terms of equity use around 2023, with a minor decline thereafter, indicating potential shifts in capital management or market conditions influencing asset utilization.