Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 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 investment activity ratios demonstrate generally positive trends over the observed period, with some fluctuations. Overall, the company appears to be becoming more efficient in its asset utilization, though recent quarters suggest a potential stabilization or slight decline in certain metrics.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally increased from 3.47 in September 2020 to a peak of 3.91 in September 2022. This indicates improving efficiency in generating revenue from fixed assets. However, from September 2022 through December 2025, the ratio experienced a gradual decline, ending at 3.48. This suggests a potential weakening in the efficiency of fixed asset utilization in the most recent periods, potentially due to increased investment in fixed assets without a corresponding increase in revenue, or a slowdown in sales.
- Total Asset Turnover
- The total asset turnover ratio exhibited a consistent upward trend from 0.60 in September 2020 to 0.69 in September 2022, signifying enhanced efficiency in utilizing all assets to generate sales. Following this peak, the ratio remained relatively stable, fluctuating between 0.66 and 0.68 for several quarters. The most recent quarters show a slight downward trend, concluding at 0.67 in December 2025. This suggests a potential stabilization or minor decrease in overall asset efficiency.
- Equity Turnover
- The equity turnover ratio demonstrated a clear increasing trend from 1.50 in September 2020 to 1.83 in September 2022, indicating a more effective use of shareholder equity to generate revenue. After reaching its peak, the ratio experienced a moderate decline, ending at 1.61 in December 2025. This suggests a potential decrease in the return generated for each dollar of equity invested, although the ratio remains above its initial value.
In summary, the company demonstrated improvements in asset and equity turnover ratios through September 2022. The subsequent period reveals a stabilization or slight decline in these ratios, warranting further investigation to determine the underlying causes and potential implications for future performance.
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Net Fixed Asset Turnover
Procter & Gamble Co., net fixed asset turnover calculation (quarterly data)
Based on: 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 Q2 2026 Calculation
Net fixed asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Property, plant and equipment, net
= (22,208 + 22,386 + 20,889 + 19,776)
÷ 24,487 = 3.48
The net fixed asset turnover ratio exhibits a generally increasing trend over the observed period, with some fluctuations. Initially, the ratio stood at 3.47 in September 2020 and remained relatively stable through December 2021, reaching 3.67. A consistent upward movement was then observed through the first half of 2022, peaking at 3.91 in September 2022. Subsequently, the ratio experienced a decline, reaching a low of 3.53 in June 2025, though it remained above the initial value from September 2020.
- Overall Trend
- The overall trend indicates improving efficiency in utilizing fixed assets to generate sales revenue. The ratio generally increased from 3.47 to a high of 3.91 over approximately two years, suggesting that the company became more effective at converting its investment in property, plant, and equipment into sales. The recent decline from the peak warrants further investigation, but the ratio remains at a comparatively strong level.
- Short-Term Fluctuations
- While the long-term trend is positive, there are noticeable short-term fluctuations. For example, a slight decrease occurred between September 2020 and December 2020. Similarly, a more pronounced dip is visible between September 2022 and June 2025. These fluctuations could be attributed to seasonal sales patterns, changes in production capacity, or strategic asset adjustments.
- Recent Performance (2024-2025)
- The ratio demonstrates a slight downward trend in the most recent periods. From September 2024 (3.82) to June 2025 (3.53), the ratio decreased. This suggests a potential slowdown in sales generation relative to fixed asset investment. The decline from 3.69 in March 2025 to 3.53 in June 2025 is particularly noteworthy and may indicate emerging challenges in asset utilization.
- Comparison to Initial Period
- Despite the recent decline, the ratio in June 2025 (3.53) remains slightly above the initial value recorded in September 2020 (3.47). This indicates that, overall, the company has improved its efficiency in utilizing fixed assets over the entire period, even considering the recent softening.
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Total Asset Turnover
Procter & Gamble Co., total asset turnover calculation (quarterly data)
Based on: 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 Q2 2026 Calculation
Total asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Total assets
= (22,208 + 22,386 + 20,889 + 19,776)
÷ 127,286 = 0.67
The total asset turnover ratio exhibits a generally increasing trend over the observed period, with some fluctuations. Initially, the ratio stood at 0.60 in September 2020 and gradually increased to a peak of 0.69 in June 2022 and again in September 2022 and December 2024. Subsequently, the ratio experienced a slight decline, ending at 0.67 in December 2025.
- Overall Trend
- From September 2020 through December 2022, the ratio demonstrated consistent improvement, indicating increasing efficiency in utilizing assets to generate sales. The ratio increased from 0.60 to 0.69, representing a 15% improvement. This suggests the company became more effective at converting its investments in assets into revenue during this timeframe.
- Mid-Term Stability (2021-2022)
- Between March 2021 and June 2022, the ratio remained relatively stable, fluctuating between 0.64 and 0.69. This period suggests a consistent level of asset utilization, with no significant deviations in operational efficiency. The slight increase during this period indicates a continued, albeit moderate, improvement in asset turnover.
- Recent Fluctuations (2023-2025)
- From March 2023 onwards, the ratio experienced more pronounced fluctuations. It peaked at 0.70 in December 2023, then decreased to 0.66 in June 2024, before recovering to 0.69 in December 2024. The final period shows a slight decline to 0.67 in December 2025. These fluctuations could be attributed to changes in sales volume, asset base, or a combination of both. The recent decline, while modest, warrants further investigation to determine the underlying causes.
- Relationship to Sales
- The observed trend in the total asset turnover ratio generally aligns with the trend in net sales. Periods of increased sales often correlate with higher turnover ratios, and vice versa. However, the relationship is not perfectly linear, suggesting that factors beyond sales volume, such as asset management strategies, also play a role.
In conclusion, the company generally improved its asset utilization efficiency over the analyzed period. While recent fluctuations require monitoring, the overall trend suggests effective asset management practices. Continued analysis, incorporating industry benchmarks and competitor performance, would provide a more comprehensive understanding of the company’s asset turnover performance.
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Equity Turnover
Procter & Gamble Co., equity turnover calculation (quarterly data)
Based on: 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 Q2 2026 Calculation
Equity turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Shareholders’ equity attributable to Procter & Gamble
= (22,208 + 22,386 + 20,889 + 19,776)
÷ 53,041 = 1.61
The equity turnover ratio for the analyzed period demonstrates a generally stable trend with moderate fluctuations. Initially, the ratio exhibits a slight increase from 1.50 in September 2020 to 1.76 in December 2021. Following this peak, the ratio experiences a period of relative stability, oscillating between 1.61 and 1.83 through June 2022. A gradual decline is then observed, reaching a low of 1.59 in September 2025, though remaining within the initial range observed at the beginning of the period.
- Overall Trend
- The equity turnover ratio generally indicates a consistent ability to generate sales relative to shareholder equity. The initial increase suggests improving efficiency in utilizing equity to generate revenue. The subsequent stabilization and slight decline may indicate a maturing of this efficiency or external factors influencing sales.
- Peak Performance
- The highest equity turnover ratio of 1.76 was recorded in December 2021. This suggests that, during this period, the company was effectively leveraging shareholder equity to generate sales. Further investigation into the factors contributing to this peak performance would be beneficial.
- Recent Performance (2024-2025)
- From June 2024 through December 2025, the ratio fluctuates between 1.61 and 1.68, indicating a period of relative consistency. The slight downward trend towards the end of the period warrants monitoring to determine if it represents a developing pattern.
- Relationship to Sales
- Net sales generally increased over the period, but the equity turnover ratio did not consistently follow this trend. This suggests that changes in equity levels are also influencing the ratio, potentially due to share repurchases, dividend payments, or retained earnings.
In conclusion, the equity turnover ratio demonstrates a generally healthy and stable performance. While fluctuations exist, the ratio remains within a reasonable range, indicating a consistent, though not dramatically improving, ability to generate sales from shareholder equity. Continued monitoring of this ratio, alongside net sales and equity components, is recommended to identify any significant shifts in operational efficiency.
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