Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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Profitability Ratios (Summary)
Procter & Gamble Co., profitability ratios (quarterly data)
Based on: 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), 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).
The financial performance indicators over the analyzed periods reveal several noteworthy trends. Gross profit margin experienced a gradual decline from a peak of 51.57% in June 2020 to a low near 46.6% in December 2022, suggesting increased cost pressures or pricing adjustments during that timeframe. However, it subsequently recovered, reaching levels above 51% again by late 2024, indicating improved operational efficiencies or favorable market conditions restoring profitability at the gross level.
Operating profit margin follows a somewhat similar pattern, rising from 22.14% in June 2020 to nearly 23.94% in June 2021 before dipping below 22% around late 2022 and early 2023. It then steadily improved, surpassing 24% by the first quarter of 2025. This trend suggests fluctuating operating costs or investments in operations, with recent periods demonstrating a favorable management of operating expenses relative to revenues.
Net profit margin exhibits relative stability with mild fluctuation, maintaining a range between approximately 17% and 19% throughout the periods. A slight dip is observed around late 2022 to early 2023, followed by a moderate recovery up to 18.95% by early 2025. The steadiness of net profit margin despite variances in gross and operating margins may indicate effective control over non-operating expenses and taxation.
Return on equity (ROE) showed a rising trend from 28% in mid-2020, peaking above 32% in early 2022, reflecting strong profitability and efficient equity use during this phase. Following the peak, ROE normalized to the range of approximately 29-31%, suggesting stable shareholder returns in recent quarters despite market fluctuations. The dip to around 27.6% in late 2023 could hint at temporary challenges or strategic shifts impacting equity returns.
Return on assets (ROA) demonstrated steady improvement, climbing from roughly 10.8% in mid-2020 to values above 12% in later periods, peaking near 12.7% in early 2025. This indicates enhanced asset utilization and profitability at the asset level, signifying the company’s ability to generate earnings efficiently from its asset base over time.
- Gross Profit Margin
- Declined from a high above 51% mid-2020 to a low near 46.6% in late 2022, then recovered to above 51% by early 2025.
- Operating Profit Margin
- Increased to nearly 24% in mid-2021, declined below 22% in late 2022, and improved to over 24% by early 2025.
- Net Profit Margin
- Remained relatively stable between 17% and 19%, with a slight dip in late 2022 and recovery toward 19% by early 2025.
- Return on Equity (ROE)
- Rose from 28% mid-2020 to above 32% in early 2022, then stabilized around 29-31%, with a transient dip in late 2023.
- Return on Assets (ROA)
- Showed continuous improvement from around 10.8% to about 12.7%, indicating better asset efficiency over time.
Return on Sales
Return on Investment
Gross Profit Margin
Procter & Gamble Co., gross profit margin calculation (quarterly data)
Based on: 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), 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).
1 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
- Net Sales Trend
- Net sales demonstrate a generally increasing trajectory over the periods analyzed, starting from 17,798 million USD in September 2019 and showing fluctuations with a notable dip around March 2020 at 17,214 million USD, likely reflecting external disruptions. From June 2020 onward, there is a steady recovery and growth, peaking at 21,882 million USD in December 2024, although some variability occurs in the most recent quarters.
- Gross Profit Trend
- Gross profit follows a pattern somewhat aligned with net sales but exhibiting more volatility. Initial values near 9,075 million USD rise towards 10,492 million USD by December 2020, then drop in early 2021 before rebounding to peak at 11,464 million USD in December 2024. This trend indicates improvements in profitability alongside sales increases, though fluctuations suggest periodic cost or pricing pressures.
- Gross Profit Margin Pattern
- The gross profit margin is not reported in the earliest periods but, from June 2020 forward, it remains relatively stable with small fluctuations. Initially set around 50.32%, the margin experiences a slight decline between early 2021 and late 2022, reaching lows near 46.6%. Subsequently, it recovers gradually, surpassing 51% by late 2024. This suggests effective cost management or pricing strategies that improve gross profitability relative to sales in recent periods.
- Overall Financial Insights
- The data reveals resilience post the early 2020 downturn, with both net sales and gross profit recovering and trending upwards. The slight dip in gross margin during 2021 to 2022 may indicate temporary margin compression, potentially linked to input costs or competitive factors. However, the recovery of the gross margin in late 2023 through 2024, alongside rising sales and gross profits, reflects strengthening operational efficiency and favorable market conditions.
Operating Profit Margin
Procter & Gamble Co., operating profit margin calculation (quarterly data)
Based on: 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), 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).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
- Operating Income
- The operating income exhibits notable volatility across the periods. After a peak in the fourth quarter of 2019 at 4,482 million US dollars, there was a sharp decline during early 2020, reaching a low around the second quarter (3,481 million US dollars). Subsequently, there was a recovery trend that brought operating income back above 5,000 million US dollars during the fourth quarter of 2020 and the fourth quarter of 2021. However, fluctuations persisted through subsequent periods, with values oscillating roughly between 3,500 and 5,800 million US dollars. The last two years show periods of resurgence with multiple quarters surpassing 5,700 million US dollars, suggesting periods of operational strength interspersed with pullbacks.
- Net Sales
- Net sales demonstrated an overall upward trajectory throughout the timeframe despite periodic fluctuations. Starting at approximately 17,798 million US dollars in September 2019, net sales experienced declines in early 2020, likely influenced by external market factors. Post mid-2020, there was a gradual increase reaching new highs above 21,900 million US dollars in late 2021 into 2022. Some quarters in 2023 and 2024 show minor dips but generally maintain a level above 20,000 million US dollars. This trend indicates consistent revenue generation capability with growth phases overcoming short-term reductions.
- Operating Profit Margin
- The operating profit margin was not reported for all early periods but, from mid-2020 onward, it remained relatively stable with slight fluctuations. Margins hovered mostly between approximately 21.6% and 24.3%, reflecting consistent operational efficiency. There was a tendency for gradual improvement towards late 2024 and early 2025, where margins peaked at over 24%. This suggests an enhancement in cost management or pricing power despite the volatility observed in absolute operating income and net sales figures.
- Overall Trends and Insights
- There is clear evidence of resilience with robust recovery after mid-2020 downturns, indicated by both operating income and net sales trends rebounding strongly. Operating income, while variable in magnitude, shows cyclical ups and downs but maintains an overall positive slope when viewed over the entire span. Net sales growth supports this observation, maintaining healthy revenue streams above historical lows for most recent periods. Additionally, the consistently solid operating profit margins emphasize the company's ability to sustain profit generation amid fluctuating revenues and costs. In summary, while short-term fluctuations are apparent, the financial data suggests a strong underlying operational foundation with improving margins and steady revenue growth.
Net Profit Margin
Procter & Gamble Co., net profit margin calculation (quarterly data)
Based on: 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), 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).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net earnings attributable to Procter & Gamble (P&G)Q4 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q3 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q2 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The financial data reveals several notable trends and patterns over the analyzed quarterly periods. Net sales demonstrate a generally increasing trajectory with some fluctuations. Starting at $17,798 million in September 2019, sales climbed to a peak of $21,953 million by December 2024, reflecting steady growth despite intermittent dips, such as a decline in March 2020 coinciding with early pandemic effects. The most recent periods show slight variability but maintain a higher level relative to the initial quarters, suggesting resilience and recovery capacity.
Net earnings attributable to the company exhibit more pronounced volatility in comparison to sales. Earnings ranged from a low of $2,800 million in June 2020 to a high of $4,630 million in December 2024. Despite fluctuations, net earnings tend to rise over the timeframe, aligning broadly with the sales trend but showing sharper cyclical movements. The steep declines in earnings observed around mid-2020 align with the economic disruptions at that time, followed by recovery and renewed upward momentum into late 2024.
The net profit margin percentages, available from June 2020 onwards, remain relatively stable, consistently hovering around the 17% to 19% range. This stability indicates that the company managed to sustain its profitability ratio despite variability in absolute earnings and sales values. Margins slightly decreased from a high near 18.97% in June 2020 to approximately 17.06% by December 2024, suggesting mild compression potentially due to cost pressures or competitive factors. Nevertheless, the margin's persistence within a narrow band reflects effective management of operating efficiency and cost control.
- Net Sales
- Show an overall upward trend with growth from $17,798 million to over $21,700 million, despite cyclical dips, suggesting expansion and market demand strength.
- Net Earnings
- Display greater fluctuation with a notable impact from mid-2020, followed by a recovery phase culminating in a peak in late 2024. The volatility points to sensitivity to external conditions but an underlying positive growth trend.
- Net Profit Margin
- Remain stable within 17%-19%, indicating the company's ability to maintain profitability amid changing sales and earnings, with a slight downward trend toward the end of the period.
Overall, the data suggests steady growth in revenue accompanied by fluctuating but resilient earnings and stable profit margins, reflecting an adaptive business model capable of navigating external economic pressures while maintaining profitability. Continued focus on margin management will be crucial as the company progresses through varying economic cycles.
Return on Equity (ROE)
Procter & Gamble Co., ROE calculation (quarterly data)
Based on: 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), 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).
1 Q4 2025 Calculation
ROE = 100
× (Net earnings attributable to Procter & Gamble (P&G)Q4 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q3 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q2 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q1 2025)
÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × ( + + + )
÷ =
- Net Earnings attributable to Procter & Gamble
- The net earnings exhibit a cyclical pattern with seasonal fluctuations. There is notable volatility quarter-over-quarter, with earnings peaking several times, such as in September 2020 (4,277 million US$), September 2021 (4,112 million US$), and September 2023 (4,521 million US$). A downturn is observable in certain quarters, for example, March 2020 (2,917 million US$) and June 2020 (2,800 million US$), likely reflecting external market or operational impacts. The earnings generally remain between 3,000 and 4,500 million US$ in most quarters, with a slight upward trajectory after mid-2022, displaying some recovery and growth. The presence of recurring peaks in the third quarters suggests a potential seasonal driver in business performance.
- Shareholders’ Equity attributable to Procter & Gamble
- Shareholders’ equity shows a relatively stable level with gradual increases over the observed periods. Starting from approximately 46,578 million US$ in September 2019, the equity fluctuates mildly but trends upwards, reaching around 52,272 million US$ by March 2025. Minor dips appear sporadically, such as in December 2021 (44,618 million US$) and September 2022 (44,075 million US$), but these are not sustained, and the overall trend indicates steady growth. This stability suggests a maintained or growing capital base amid operating fluctuations.
- Return on Equity (ROE)
- ROE values are available starting from September 2020, showing consistently strong profitability metrics. The ROE remains above 27%, peaking around 33% in September 2022, indicating efficient use of equity to generate earnings. The range narrows between approximately 27.6% and 33%, suggesting stable financial performance with modest fluctuations. A slight downward trend is observable after September 2022, but ROE stays near the 30% mark through to June 2025, underlining sustained shareholder value creation during the period.
- Overall Analysis
- The company's financial results demonstrate resilience with periodic earnings fluctuations likely influenced by seasonality and external factors. Shareholders' equity growth is steady, providing a solid foundation for operations. The strong and stable ROE highlights continuous effective management of equity capital to deliver returns. The observed patterns suggest a business with cyclical revenue recognition but robust underlying fundamentals and ongoing capacity for value generation for shareholders.
Return on Assets (ROA)
Procter & Gamble Co., ROA calculation (quarterly data)
Based on: 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), 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).
1 Q4 2025 Calculation
ROA = 100
× (Net earnings attributable to Procter & Gamble (P&G)Q4 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q3 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q2 2025
+ Net earnings attributable to Procter & Gamble (P&G)Q1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
The analysis of the quarterly financial data reveals several noteworthy trends and patterns over the observed periods.
- Net Earnings
- The net earnings attributable demonstrate a cyclical pattern with evident fluctuations quarter over quarter. There is a visible decline in earnings during the early quarters of 2020, likely influenced by external factors impacting economic conditions. Subsequently, earnings showed recovery with peaks notably in the September and December quarters of fiscal years 2020 and 2021. The data also indicate a general upward trend after mid-2021, although the earnings figures continue to exhibit volatility. The latest quarters show somewhat mixed results with increases and some declines, yet with a tendency toward recovery in recent periods.
- Total Assets
- Total assets have shown relative stability with mild fluctuations throughout the period. Initially, there was a slight decrease in assets from late 2019 into early 2020, followed by a modest increase and subsequent stabilization around a range of approximately 116 to 122 billion US dollars. The data indicate no dramatic shifts, suggesting steady asset management and balance sheet consistency. Notably, towards the most recent quarters, asset values demonstrate a mild increasing trend, reaching above 125 billion US dollars in the latest quarter, implying gradual growth or accumulation of assets.
- Return on Assets (ROA)
- Return on Assets percentages appear only for quarters starting from June 30, 2020. The ROA values consistently range from approximately 10.79% to around 12.76%, reflecting a stable and relatively strong profitability performance relative to the company’s asset base. The ROA shows slight variability but maintains a generally consistent level, emphasizing effective asset utilization over time. There is no marked decline or alarming volatility in ROA, indicating ongoing operational efficiency within the periods analyzed.
In summary, the financial data reflects a resilient earnings performance despite some periodic declines, steady asset base management without extreme fluctuations, and a consistently strong return on assets. These elements combined suggest an overall stable financial condition with effective utilization of assets to generate profits.