Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Return on Assets (ROA) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Procter & Gamble Co., profitability ratios (quarterly data)
Based on: 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 financial data presents several key profitability and efficiency ratios over multiple quarterly periods. The analysis focuses on gross profit margin, operating profit margin, net profit margin, return on equity (ROE), and return on assets (ROA), illustrating both their trends and fluctuations.
- Gross Profit Margin
- The gross profit margin demonstrated a gradual decline from 50.78% in September 2020 to a low point around 46.6% in December 2022. This reduction suggests increasing costs of goods sold relative to revenue during this period. However, starting in early 2023, the margin showed a recovery trend, reaching above 51% by mid to late 2024, indicating improved cost management or pricing strategies contributing to stronger profitability at the gross level.
- Operating Profit Margin
- The operating profit margin showed some volatility but maintained a generally stable range between approximately 21.5% and 23.5%. After a decrease during late 2021 and most of 2022, it improved significantly during late 2024 into 2025, peaking around 24.26% in mid-2025. This pattern suggests operational efficiencies or cost controls enhanced despite earlier margin compression.
- Net Profit Margin
- Net profit margin mirrored trends similar to operating margin, with a decline from around 19% in late 2020 to a trough near 17.6% in late 2023. Subsequent quarters showed a recovery with margins climbing above 19% by the third quarter of 2025. This reflects effective expense management below the operating line and overall improvement in profitability at the net level.
- Return on Equity (ROE)
- The ROE exhibited an initial increase from 28.46% in Q3 2020 to a peak exceeding 33% by Q3 2022, indicating strong shareholder returns. It then declined steadily through 2023 and most of 2024, down to about 27.6%, before rebounding in 2025 to over 31%. These fluctuations could be linked to changing profit margins and leverage effects impacting equity returns.
- Return on Assets (ROA)
- ROA showed a gradual upward trend from approximately 11.44% in Q3 2020 to a peak exceeding 13% in Q3 2025. Despite minor fluctuations, ROA stability indicates consistent asset utilization efficiency with some improvement in generating net income from total assets over the observed period.
Overall, the data reveals a period of margin compression across gross, operating, and net profit metrics around 2022 and 2023, likely indicating higher cost pressures or competitive challenges. Subsequently, recovery trends in 2024 and 2025 denote improvement in both sales profitability and operational efficiency. Additionally, ROE and ROA patterns corroborate enhanced return generation for shareholders and asset efficiency in recent quarters. The combined analysis suggests effective strategic adjustments and operational resilience returning the company to stronger financial performance by mid-2025.
Return on Sales
Return on Investment
Gross Profit Margin
Procter & Gamble Co., gross profit margin calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Gross profit margin = 100
× (Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The financial performance demonstrates dynamic movements across the observed quarters, particularly in gross profit, net sales, and gross profit margin.
- Gross Profit
- Gross profit shows fluctuations over the periods analyzed, with values oscillating between roughly 8.7 billion and 11.5 billion US dollars. Initial quarters reveal a decline from the approximate 10.2 billion US dollars level down to mid 8.7 billion region by mid-2022, followed by a gradual recovery reaching peaks near 11.5 billion in later quarters. This pattern suggests episodes of pressure on profitability from cost or revenue changes, with subsequent improvements.
- Net Sales
- Net sales figures exhibit a somewhat similar volatility, ranging from about 18.1 billion to approximately 22.4 billion US dollars. An evident dip is observed in early 2021, improving towards the end of 2021 and fluctuating thereafter. Notably, sales levels peak in several recent quarters at over 21.8 billion US dollars, indicating recovery and growth trends after earlier decreases.
- Gross Profit Margin
- The gross profit margin percentage reflects a declining trend from over 51% in 2020 toward a lower margin mid-46% mark during late 2022, then steadily increasing back above 51% in the most recent quarters. This indicates cost management or pricing strategy adjustments that initially reduced profitability margins but were later successfully mitigated, resulting in restored margin levels comparable to or surpassing earlier periods.
Overall, the data reveals that despite the volatility in sales and gross profit in the earlier years, the company managed to improve profitability margins towards the end of the period. The recovery in gross profit margin alongside rising net sales volumes in recent quarters points to effective operational management and potentially favorable market conditions contributing to enhanced earnings quality.
Operating Profit Margin
Procter & Gamble Co., operating profit margin calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
- Net Sales
- Net sales show a fluctuating but generally increasing trend over the presented periods. Starting at approximately $19.3 billion in September 2020, sales reach about $22.4 billion by September 2025. Although there are some quarters with dips, such as March 2021 and March 2025, the overall trajectory suggests steady revenue growth with occasional seasonal variations.
- Operating Income
- Operating income exhibits pronounced volatility compared to net sales. Initial values at around $5.3 billion in September 2020 decrease sharply in early 2021, falling below $4 billion in several quarters. However, operating income recovers somewhat towards the latter part of the period, peaking again near $5.8 billion in September 2024 and September 2025. This pattern indicates cyclical fluctuations in profitability that do not consistently track the steady rise in net sales.
- Operating Profit Margin
- The operating profit margin remains relatively stable between roughly 21.6% and 24.3%. There is a subtle downward trend in margins during 2021 and 2022, dipping to the low 21% range, followed by a gradual recovery upward in later years, reaching its peak toward mid to late 2025. This suggests improvements in operational efficiency or cost management contributing positively to profitability despite the volatility in operating income.
- Insight Summary
- Overall, the data indicates that while net sales steadily increase over time, operating income is subject to significant quarterly fluctuations, potentially influenced by external market factors or internal cost dynamics. The resilience and slight upward trend in operating profit margins toward the end of the period imply effectiveness in managing expenses and sustaining profitability amid variable income levels. These patterns underscore the importance of continuous operational oversight to balance revenue growth with cost control.
Net Profit Margin
Procter & Gamble Co., net profit margin calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Net profit margin = 100
× (Net earnings attributable to Procter & Gamble (P&G)Q1 2026
+ 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 salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
- Net Earnings Attributable to Procter & Gamble
-
The net earnings exhibited notable fluctuations over the reported periods. Initially, from September 2020 to June 2021, there is a clear declining trend, dropping from approximately 4,277 million USD to around 2,906 million USD. Following this decline, earnings rebounded sharply in the subsequent quarters, with increases generally observed through 2021 and into early 2022, peaking again near the 4,521 million USD mark in September 2023.
The pattern of oscillation continues from late 2023 into 2025, with net earnings demonstrating volatility quarter to quarter, yet showing a general upward movement toward the end of the period examined, culminating at 4,750 million USD in September 2025, the highest recorded value in the dataset.
- Net Sales
-
Net sales showed considerable variability but remained within a relatively consistent range throughout the entire timeline. The figures fluctuated mostly between approximately 18,000 million USD and 22,000 million USD, exhibiting a seasonal or cyclical pattern with peaks frequently observed around the September and December quarters.
There is an observable upward trend in net sales overall, particularly noticeable from mid-2023 onward, with peak values approaching 22,386 million USD by the third quarter of 2025. This suggests a gradual recovery or growth in revenue-generating activities despite interim fluctuations.
- Net Profit Margin
-
The net profit margin remained relatively stable throughout the periods, generally oscillating between approximately 17% to 19%. There was a slight declining trend during the middle quarters of the dataset, bottoming out near 17.06% in late 2024, followed by a recovery toward the end, reaching nearly 19.74% by September 2025.
This indicates that while absolute earnings and sales volumes fluctuated, the company maintained a relatively consistent level of profitability on its sales, with slight improvements seen in the most recent quarters analyzed.
- Summary Insights
-
The data portrays a company experiencing periods of volatility in net earnings, paired with fairly steady sales revenues and stable profitability margins. The earnings cycles suggest variability in operational performance or external factors affecting profitability in the short term.
Nonetheless, the overall trends in net sales and profit margins imply sustained demand and effective cost management strategies, with promising signs of growth and improved profitability toward the latter part of the timeline.
Seasonality appears to influence both sales and earnings, necessitating careful quarter-over-quarter analysis for operational planning. The resilience in profit margins despite earnings fluctuations highlights sound financial management amid varying market conditions.
Return on Equity (ROE)
Procter & Gamble Co., ROE calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
ROE = 100
× (Net earnings attributable to Procter & Gamble (P&G)Q1 2026
+ 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)
÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × ( + + + )
÷ =
- Net Earnings
- The net earnings attributable to the company exhibit a clear cyclical pattern with fluctuations occurring within each fiscal year. There is an evident tendency for earnings to peak in the quarters ending September and December, followed by a decline in the subsequent quarters, particularly noticeable in the first half of each year. Despite these fluctuations, the overall trend across the multi-year span suggests relative stability in earnings levels, with peaks and troughs recurring but without a significant long-term upward or downward trajectory. However, some years demonstrate stronger quarters, such as the elevated earnings reported in late 2023 and late 2025, indicating intermittent periods of enhanced profitability.
- Shareholders’ Equity
- Shareholders’ equity shows a gradual but consistent increase over the observed period. Beginning with a value close to 48 billion US dollars, equity dips slightly during some quarters but generally trends upward toward the latest periods, where it surpasses 53 billion US dollars. This steady accumulation of equity indicates ongoing value creation and retention within the company, despite periodic minor declines likely due to normal business operations or capital activities. The overall increase in equity suggests a strengthening financial base and possibly the reinvestment of earnings or other capital inflows.
- Return on Equity (ROE)
- Return on equity maintains a relatively high level throughout the period, consistently ranging between approximately 27.6% and 33.1%. The ROE demonstrates minor fluctuations but remains stable, with peaks generally aligning with certain quarters exhibiting higher net earnings. Notably, the highest ROE values occur in mid-cycle fiscal quarters, corresponding with periods of increased profitability as also observed in net earnings. Although there is a slight tapering in ROE around 2024, it recovers towards the end of the dataset. This sustained ROE performance reflects effective use of shareholders' equity in generating profits.
- Overall Insights
- The company displays a pattern of seasonal earnings volatility, likely influenced by market or operational cycles, while maintaining a strong and increasing shareholders’ equity base. The consistent and elevated ROE underscores efficient capital utilization and profitability over the long term. No drastic declines or negative trends are observed, indicating financial stability and resilience. The recurring peaks in earnings and ROE may highlight strategic points in the fiscal calendar where performance intensifies. The growth in equity alongside stable profitability metrics suggests the company is effectively balancing growth and shareholder value creation.
Return on Assets (ROA)
Procter & Gamble Co., ROA calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
ROA = 100
× (Net earnings attributable to Procter & Gamble (P&G)Q1 2026
+ 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)
÷ Total assets
= 100 × ( + + + )
÷ =
- Net Earnings Attributable to Procter & Gamble
- The net earnings demonstrate notable fluctuations across the examined periods. Initially, there is a decline from 4,277 million USD in September 2020 to a low point near 2,906 million USD by June 2021. Subsequently, earnings recover with a peak exceeding 4,500 million USD in September 2023, before experiencing another moderate decrease thereafter. The overall pattern indicates periods of volatility, with earnings recuperating following downturns, but not maintaining a steady upward trajectory.
- Total Assets
- The total assets remain relatively stable throughout the quarters, fluctuating within a narrow band from approximately 116,000 million USD to 127,000 million USD. There is no pronounced increasing or decreasing trend, suggesting that asset base management has been consistent, without significant expansion or contraction over the observed timeframe.
- Return on Assets (ROA)
- The ROA values stay within a consistent range, roughly between 11.3% and 13.1%, with minor variations over the periods. The metric shows generally stable profitability relative to total assets, with a slight upward trend observable towards later periods. The peak ROA occurs near 13.14% in September 2025, indicating efficient utilization of assets to generate earnings despite fluctuations in net income.
- Overall Insights
- The company exhibits stable asset management alongside volatile earnings, pointing to factors influencing profitability beyond total asset base changes. The steady ROA suggests effective asset utilization even when net earnings temporarily decline. Patterns observed imply cyclical or situational impacts on earnings, but the ability to maintain or improve asset efficiency is maintained throughout the periods analyzed.