Analysis of Profitability Ratios
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
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).
- Gross Profit Margin
- The gross profit margin exhibited variability over the observed periods, initially increasing from 50.32% in 2020 to 51.25% in 2021. This was followed by a decline to 47.43% in 2022, after which the margin showed a modest recovery up to 51.39% by 2024, maintaining a similar level at 51.16% in 2025. Overall, the margin demonstrates resilience with a tendency to return close to the earlier higher levels.
- Operating Profit Margin
- The operating profit margin showed a generally stable performance with a slight upward trend. Starting at 22.14% in 2020, it increased to 23.63% in 2021, then experienced a slight decrease to around 22.1% between 2022 and 2024. In the last measured year, 2025, there was a noticeable rise to 24.26%, indicating improved operational efficiency or cost management.
- Net Profit Margin
- Net profit margin remained relatively steady throughout the period, fluctuating mildly between 17.7% and 18.95%. It peaked in 2021 at 18.79%, dipped to its lowest point of 17.7% in 2024, and then increased again to 18.95% in 2025. This stability suggests consistent profitability at the bottom line despite fluctuations in other margins.
- Return on Equity (ROE)
- ROE generally exhibited strong performance levels, rising from 28% in 2020 to a peak of 31.64% in 2022. It slightly decreased thereafter, reaching 29.59% in 2024, before recovering to 30.71% in 2025. This indicates effective use of shareholder equity to generate profits, with minor fluctuations over time.
- Return on Assets (ROA)
- ROA showed a consistent upward trend over the period, increasing steadily from 10.79% in 2020 to 12.76% in 2025. Although a slight decrease was noted between 2022 and 2023, the overall growth suggests enhanced asset utilization and profitability from the company’s asset base.
Return on Sales
Return on Investment
Gross Profit Margin
Procter & Gamble Co., gross profit margin calculation
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | |||||||
| Net sales | |||||||
| Profitability Ratio | |||||||
| Gross profit margin1 | |||||||
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × ÷ =
The financial data reveals several key trends in the company's performance over the six-year period under review.
- Gross Profit
- The gross profit showed an overall upward trend, increasing from 35,700 million US dollars in 2020 to a peak of 43,191 million in 2024. However, there was a slight decline to 43,120 million in 2025, indicating a marginal decrease after years of growth.
- Net Sales
- Net sales consistently grew each year, rising from 70,950 million US dollars in 2020 to 84,284 million in 2025. The growth rate appears to moderate slightly in the latter years, but the overall trend is positive and steady.
- Gross Profit Margin
- The gross profit margin exhibited some fluctuations during the period. It increased from 50.32% in 2020 to a peak of 51.25% in 2021, then decreased notably to 47.43% in 2022 and remained relatively stable around 47.86% in 2023. The margin improved again in 2024, reaching 51.39%, and slightly decreased to 51.16% in 2025. These fluctuations suggest variability in cost management or pricing strategies affecting profitability.
In summary, the company demonstrated steady growth in net sales and gross profit over the six years, with slight variability in gross profit margin that recovered towards the end of the period. The slight dip in gross profit in the last year warrants attention despite sustained sales growth.
Operating Profit Margin
Procter & Gamble Co., operating profit margin 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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
- Operating Income
- The operating income demonstrates a generally positive trend over the observed periods. Beginning at 15,706 million US dollars in 2020, it increases steadily year over year, reaching 20,451 million US dollars by 2025. This upward movement suggests improved operational profitability and effective management of operating expenses relative to revenue.
- Net Sales
- Net sales show consistent growth throughout the periods examined. Starting from 70,950 million US dollars in 2020, sales increase annually, reaching 84,284 million US dollars in 2025. The growth in sales revenue indicates a gradual expansion of market demand or enhanced sales strategies, contributing positively to overall company performance.
- Operating Profit Margin
- The operating profit margin reveals a mostly stable profile with minor fluctuations. In 2020, the margin stands at 22.14%, improving to 23.63% in 2021, indicating enhanced efficiency or better pricing power. However, it slightly declines in subsequent years, dipping to around 22.07% in 2024, before gaining significant momentum and rising to 24.26% in 2025. This final increase suggests a marked improvement in operating efficiency or cost management during the last year.
- Overall Trends and Insights
- The combination of increasing net sales and operating income alongside a relatively stable and recently improving operating profit margin indicates strong operational performance. The data suggests that the company has successfully leveraged sales growth without substantially sacrificing profitability. The improvement in the operating profit margin in the latest year points toward enhanced operational leverage or cost control measures taking effect. These trends collectively reflect a favorable financial trajectory characterized by healthy revenue expansion coupled with increasing operational efficiency.
Net Profit Margin
Procter & Gamble Co., net profit margin 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 profit margin = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Net sales
= 100 × ÷ =
The financial overview reveals several notable trends over the six-year period from June 30, 2020, to June 30, 2025.
- Net Earnings
- Net earnings attributable show a consistent upward trajectory, rising from $13,027 million in 2020 to $15,974 million in 2025. Despite minor fluctuations, the overall growth signifies an increase in profitability over the period.
- Net Sales
- Net sales have steadily increased year over year, from $70,950 million in 2020 to $84,284 million in 2025. This growth trend, though gradual, indicates expanding revenue-generating capacity and positive market performance.
- Net Profit Margin
- The net profit margin exhibits slight variability throughout the years. Starting at 18.36% in 2020, it peaks at 18.79% in 2021, then experiences a dip reaching 17.7% by 2024, followed by a rebound to 18.95% in 2025. This indicates a general maintenance of profitability efficiency relative to sales with some short-term variations.
Overall, the data suggest steady financial growth driven by increasing sales and improving net earnings. The profit margin's relative stability amidst rising revenues implies that cost management and operational efficiency remain effective over time.
Return on Equity (ROE)
Procter & Gamble Co., ROE 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
ROE = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × ÷ =
The financial data demonstrates a generally positive trend in net earnings attributable to Procter & Gamble (P&G) over the six-year period. Net earnings increased steadily from US$13,027 million in 2020 to US$15,974 million in 2025, indicating consistent profitability growth with only minor fluctuations observed in some years.
Shareholders' equity attributable to the company shows a relatively stable pattern initially, with figures around US$46,500 million from 2020 through 2023. From 2023 onwards, there is a noticeable increase, reaching US$52,012 million by 2025, suggesting a strengthening equity base which could be indicative of retained earnings growth or other equity contributions during the latter period.
The return on equity (ROE) metric remains consistently high throughout the analyzed years, fluctuating within a narrow range between 28% and approximately 32%. It starts at 28% in 2020, peaks at 31.64% in 2022, and slightly decreases to around 30.71% by 2025. This stability in ROE suggests efficient use of shareholders’ equity to generate earnings over the period.
- Net Earnings
- Show a steady upward trajectory with moderate growth year-over-year, reflecting solid operational performance.
- Shareholders’ Equity
- Remains stable initially, followed by a notable increase in the final two years, possibly indicating accumulation of retained earnings or capital infusions.
- Return on Equity (ROE)
- Maintains a consistently high level, signifying effective management of equity capital and profitability.
Return on Assets (ROA)
Procter & Gamble Co., ROA 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
ROA = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Total assets
= 100 × ÷ =
- Net Earnings Attributable to Procter & Gamble (P&G)
- From June 30, 2020, to June 30, 2025, net earnings demonstrate an overall upward trend. Starting at $13,027 million in 2020, earnings increased steadily to $15,974 million by 2025. Although the growth rate slowed between 2022 and 2023, with a slight dip from $14,742 million to $14,653 million, earnings recovered in subsequent years, indicating resilience and positive long-term profitability momentum.
- Total Assets
- Total assets exhibited slight fluctuations but generally showed a modest upward trajectory over the six-year period. Beginning at $120,700 million in 2020, assets decreased to $117,208 million by 2022, likely reflecting divestitures or asset optimization strategies. However, from 2023 onward, assets increased steadily to reach $125,231 million in 2025, suggesting reinvestment and growth in asset base.
- Return on Assets (ROA)
- Return on Assets rose from 10.79% in 2020 to a peak of 12.58% in 2022, reflecting improved efficiency in utilizing assets to generate earnings. There was a slight decline to 12.13% in 2023, followed by a stable performance around 12.16% in 2024, and an uptick to 12.76% in 2025. The generally increasing ROA trend indicates enhanced operational efficiency and profitability relative to the company's asset base.