Procter & Gamble Co. (NYSE:PG)

The financial data for the Beauty segment over the six-year period ending June 30, 2024, reveals several notable trends in net earnings, net sales, and segment profit margin.

Net Earnings (Loss)

Net earnings demonstrated a generally upward trend from 2019 through 2021, increasing from $2,637 million to $3,210 million. However, after peaking in 2021, net earnings experienced a moderate decline, falling to $2,963 million by 2024. This decline suggests some challenges impacting profitability in the most recent years.

Net Sales

Net sales steadily increased throughout the entire period, rising consistently from $12,897 million in 2019 to $15,220 million in 2024. This trend indicates continuous growth in revenue generation and expanding market activities or demand for the Beauty segment's products.

Segment Profit Margin

The segment profit margin showed a general increase from 20.45% in 2019 to a high of 22.27% in 2021, suggesting improving operational efficiency or favorable pricing conditions during these years. Since 2021, the profit margin has declined each year, falling to 19.47% in 2024. This reduction points to increasing cost pressure, reduced pricing power, or higher expenses affecting profitability despite growing sales.

Overall, the data illustrates that while sales have consistently grown, net earnings and profit margin improvements were only sustained up to 2021, after which both indicators have experienced a downward trend. This divergence between rising sales and declining profitability metrics may warrant further investigation into cost management, competitive dynamics, or changes in the product mix impacting the Beauty segment's financial performance.

The financial analysis of the Grooming segment reveals several key trends over the six-year period ending June 30, 2024.

Net Earnings (Loss)

The net earnings display a generally stable pattern with slight fluctuations. Starting at 1,529 million US dollars in 2019, net earnings decreased to 1,329 million in 2020, which may suggest challenges faced during that period. Subsequently, net earnings showed a recovery trend rising to 1,427 million in 2021 and continuing to increase moderately to 1,490 million in 2022. There was a minor decline to 1,461 million in 2023, followed by a slight uptick to 1,477 million in 2024. Overall, net earnings remained above 1,300 million across the years except in 2020, indicating resilience and relative stability.

Net Sales

Net sales trends exhibit some variability but generally indicate growth over the period. Sales started at 6,199 million US dollars in 2019, followed by a slight decline to 6,069 million in 2020. From 2021 onwards, the segment saw consistent sales growth reaching 6,440 million in 2021 and peaking at 6,587 million in 2022. A subsequent small reduction to 6,419 million occurred in 2023, but sales rose again to 6,654 million in 2024, representing the highest figure in the series. This suggests robust market demand with occasional minor setbacks.

Segment Profit Margin

The profit margin reflects moderate fluctuations but remains relatively stable throughout the period. The margin started at 24.67% in 2019, experiencing a noticeable decline to 21.9% in 2020. Following this drop, the margin slightly improved to around 22.16%-22.76% from 2021 to 2023. In 2024, the margin decreased marginally to 22.2%. Despite the initial drop in 2020, the margin has mostly stabilized in the low 22% range, suggesting consistent profitability management within the segment.

In summary, the Grooming segment demonstrates durability in sales and earnings despite external pressures in 2020. The segment maintains a stable profit margin, indicating sustained operational efficiency and cost management efforts over the years. Minor fluctuations in earnings and sales are observed, but the overall performance trends reflect resilience and a positive outlook.

The "Health Care" reportable segment exhibits a consistent upward trend in net earnings over the six-year period. Net earnings increased steadily from $1,519 million in 2019 to $2,258 million in 2024, indicating sustained profitability growth.

Net sales have also shown a continuous increase each year, rising from $8,218 million in 2019 to $11,793 million in 2024. This growth in sales reflects an expanding market presence or higher demand within the segment.

The segment profit margin demonstrates relative stability with slight fluctuations but an overall positive direction. Starting at 18.48% in 2019, it experienced a minor dip in 2020 to 18.3%, followed by an increase in subsequent years, reaching 19.15% in 2024. This improvement suggests enhanced operational efficiency or better cost management within the segment.

Net earnings (US$ in millions)

Consistently increasing from 1,519 in 2019 to 2,258 in 2024, indicating robust profitability growth.

Net sales (US$ in millions)

Steady upward trend from 8,218 in 2019 to 11,793 in 2024, showing growth in revenues.

Segment profit margin (%)

Stable with a slight increase from 18.48% in 2019 to 19.15% in 2024, implying improved profitability efficiency.

The Fabric & Home Care segment exhibits a generally positive financial performance trend over the observed periods.

Net earnings (loss)

Net earnings increased steadily from 3,518 million USD in mid-2019 to 5,687 million USD in mid-2024. This reflects a strong growth trajectory, with notable increments especially from 2023 to 2024, indicating improved profitability within the segment.

Net sales

Net sales also show a consistent upward trend, rising from 22,080 million USD in mid-2019 to 29,495 million USD in mid-2024. The growth rate, while steady, indicates successful market penetration or increased demand for the segment’s products throughout the years.

Segment profit margin

The segment profit margin reflects fluctuations but an overall upward trend. Starting at 15.93% in mid-2019, it peaks at 19.28% in mid-2024. There is a slight dip in 2022 to 15.92%, but recovery follows, surpassing previous margin levels by 2024. This indicates improving operational efficiency or cost management contributing to higher profitability.

Overall, the data indicates sustained growth in both earnings and sales, accompanied by improved profit margins, suggesting enhanced financial health of the segment over the six-year period.

Net Earnings (Loss)

The net earnings for the segment show a generally increasing trend over the analyzed period. Starting at $2,734 million in 2019, earnings increased to $3,465 million in 2020 and continued to grow to $3,629 million in 2021. There was a slight dip in 2022, with earnings decreasing to $3,266 million, followed by a recovery in 2023 and 2024, reaching $3,545 million and $4,020 million respectively. Overall, net earnings rose significantly, indicating improved profitability despite a temporary decline in 2022.

Net Sales

Net sales increased consistently each year from $17,806 million in 2019 to $20,277 million in 2024. The growth was steady, with moderate year-over-year increases indicative of ongoing volume or pricing improvements within the segment. The smallest incremental increase appears between 2023 and 2024, suggesting a slight deceleration in sales growth during the most recent period.

Segment Profit Margin

The segment profit margin demonstrated an upward trajectory overall, beginning at 15.35% in 2019. It rose significantly to 18.87% in 2020 and maintained a similar level at 19.25% in 2021. However, in 2022, there was a noticeable decline to 16.55%, followed by modest recovery to 17.53% in 2023 and a further rise to 19.83% in 2024, which marks the highest margin in the timeframe. This pattern suggests that profitability was impacted in 2022, potentially due to higher costs or pricing pressures, but operational efficiency or pricing power strengthened thereafter.

The segment's net earnings exhibited a general upward trend from June 2019 through June 2023, increasing from 2,637 million US dollars to a peak of 3,178 million US dollars. However, in the most recent year ending June 2024, net earnings declined to 2,963 million US dollars, indicating a reversal from the prior growth trajectory.

Total assets associated with the segment showed a consistent increase from June 2019 to June 2023, growing from 5,362 million US dollars to 6,196 million US dollars. This growth plateaued slightly in the year ending June 2024, with a marginal decrease to 6,103 million US dollars, suggesting a stabilization or minor contraction in asset base.

The segment return on assets (ROA) followed a fluctuating pattern. Starting at 49.18% in June 2019, ROA saw a slight increase in 2020 to 49.48%, then a notable rise in 2021 reaching 57.45%. Subsequently, ROA declined over the next three years, dropping to 52.19% in 2022, then to 51.29% in 2023, and further down to 48.55% in 2024. This indicates that the efficiency with which assets generated earnings peaked in 2021 and has diminished in the following years.

Overall, the segment experienced growth in net earnings and assets during the initial years, with a peak in profitability efficiency in 2021. The subsequent years have shown a slight reduction in earnings, asset base, and a decline in return on assets, highlighting potential challenges in maintaining profitability and asset utilization efficiency.

The analysis of the annual data for the Grooming segment reveals several key trends and insights over the period from June 2019 to June 2024.

Net Earnings (Loss)

The net earnings displayed some fluctuations but remained relatively stable overall. Starting at $1,529 million in June 2019, earnings declined to $1,329 million in 2020, likely reflecting challenging conditions during that year. However, there was a recovery in 2021, with earnings increasing to $1,427 million, followed by a continued rise to $1,490 million in 2022. Although there was a slight dip to $1,461 million in 2023, earnings increased again to $1,477 million by June 2024, suggesting resilience and an ability to regain momentum after temporary setbacks.

Total Assets

Total assets exhibited a mild downward trend over the review period. Starting at $20,882 million in 2019, assets slightly decreased to $20,589 million in 2020 and remained near that level through 2023 with minor variations around $20,600 million. By June 2024, assets had reduced more noticeably to $19,082 million. This decline in total assets could indicate a strategic contraction, asset optimization, or divestment activities within the segment.

Segment Return on Assets (ROA)

The segment ROA followed a somewhat cyclical pattern but showed overall strength by the end of the period. It began at 7.32% in 2019, declined to 6.45% in 2020, coinciding with the drop in net earnings, and then progressively recovered to 6.90% in 2021 and 7.27% in 2022. After a slight decline to 7.09% in 2023, the ROA increased notably to peak at 7.74% in 2024. This upward trajectory in ROA, especially towards the end of the period, suggests improved asset efficiency and better profitability management despite the reduction in total assets.

In summary, the Grooming segment experienced a temporary earnings dip in 2020 followed by a recovery and mild growth in subsequent years. Total assets demonstrated a gradual decline, which may reflect strategic repositioning. The segment's ROA indicators reveal enhanced profitability and efficient asset utilization by 2024, indicating a positive operational trend despite asset base contraction.

Net Earnings (Loss)

The net earnings for the Health Care segment showed a consistent upward trend over the analyzed periods. Starting at $1,519 million as of June 30, 2019, the earnings increased steadily each year, reaching $2,258 million by June 30, 2024. This represents a significant growth in profitability, with no recorded declines or interruptions in the upward trajectory.

Total Assets

Total assets exhibited relative stability with minor fluctuations throughout the periods. The value started at $7,708 million in June 2019 and experienced slight increases and decreases, peaking at $8,480 million in June 2023 before a small reduction to $8,416 million in June 2024. Overall, total assets remained in a comparable range, showing no significant expansion or contraction.

Segment Return on Assets (ROA)

The segment ROA demonstrated a positive growth pattern, increasing from 19.71% in June 2019 to 26.83% in June 2024. The return on assets rose notably year-over-year, particularly between 2020 and 2022, reflecting improved asset efficiency and profitability. Although there was a slight dip in 2023 to 25.06%, the ROA recovered and reached its highest level in 2024, indicating stronger returns generated from the assets deployed within the segment.

Overall Analysis

The data indicates a consistent improvement in financial performance within the Health Care segment. Profitability, as evidenced by net earnings, grew substantially over the five-year period. This growth occurred alongside relatively stable total asset levels, suggesting enhanced operational efficiency. The increasing ROA further corroborates the segment's effective utilization of its assets to generate earnings. The slight fluctuation in assets does not appear to have adversely affected the earnings growth, pointing to strong management and operational execution within the segment.

Net Earnings (Loss)

The net earnings exhibited a positive and generally increasing trend over the six-year period. Beginning at $3,518 million in June 2019, earnings increased consistently year-over-year except for a slight decline observed in June 2022, when earnings fell to $4,386 million from $4,622 million in the prior year. Despite this dip, the segment recovered and achieved a notable increase, reaching $5,687 million by June 2024, indicating robust profitability growth overall.

Total Assets

Total assets demonstrated a steady upward trajectory across the years. Starting at $7,620 million in June 2019, the assets grew incrementally each year, culminating at $8,907 million by June 2024. This gradual increase suggests ongoing investments or asset accumulation supporting the segment's operations and growth strategies.

Segment Return on Assets (ROA)

The segment ROA showed a generally positive trend with some fluctuations. Initially at 46.17% in June 2019, ROA improved significantly to 53.63% in June 2020 and continued rising to 55.46% in June 2021. It experienced a decline in June 2022 to 51.2%, followed by a recovery and increase to 55.69% in June 2023. The most prominent improvement was recorded by June 2024, with ROA reaching 63.85%. This indicates enhanced efficiency in generating earnings relative to assets over time, especially in the later years.

Overall Insights

The data reflects a growing and increasingly efficient segment in terms of profitability and asset utilization. Despite occasional dips in earnings and ROA, the trajectory points to strengthening financial performance. The continuous growth in total assets complements the improvement in net earnings and return on assets, highlighting effective management of resources and successful operational outcomes in the Fabric & Home Care segment.

Net Earnings Trend

The net earnings for the segment demonstrate an overall upward trajectory from fiscal year ending June 30, 2019, through June 30, 2024. Beginning at $2,734 million, earnings increased to $3,465 million in 2020, reaching $3,629 million in 2021. A decline was noted in 2022, with earnings falling to $3,266 million; however, the trend reversed in the next two years, growing to $3,545 million in 2023 and further to $4,020 million in 2024.

Total Assets Trend

Total assets associated with the segment remained relatively stable but showed a slight downward tendency over the analyzed period. Starting at $9,271 million in 2019, assets decreased to $8,628 million in 2020, and then fluctuated narrowly around the mid-$8,000 million range through 2024, ending at $8,497 million.

Segment Return on Assets (ROA) Trend

The segment ROA exhibited a generally positive trend with some fluctuations. It increased significantly from 29.49% in 2019 to over 40% in 2020 and further to 41.88% in 2021. A slight decline followed in 2022 to 38.68%, but the ROA recovered and improved to 41.62% in 2023, reaching a peak of 47.31% in 2024, indicating enhanced efficiency in asset utilization.

Overall Insights

The data suggests that despite a minor dip in net earnings and ROA in 2022, the segment has exhibited strong financial performance with growing profitability and improved asset efficiency by 2024. Asset levels have remained fairly constant, indicating stable investment in the business segment. The rising ROA reflects a trend towards better leveraging of existing asset base to generate earnings.

The analysis of the annual segment data over the six-year period reveals several notable trends and patterns in the financial performance and asset utilization of the beauty segment.

Net Sales

The net sales demonstrated a consistent upward trajectory from 2019 to 2024. Starting at $12,897 million in 2019, sales increased steadily each year, reaching $15,220 million in 2024. This marks an overall growth of approximately 18% over the period, indicating a strong and sustained demand in the segment.

Total Assets

Total assets also showed a general increase over the period, rising from $5,362 million in 2019 to a peak of $6,196 million in 2023, before slightly declining to $6,103 million in 2024. This overall growth suggests continued investment and asset accumulation in the segment, although the marginal decrease in the final year could indicate optimization or divestment efforts.

Segment Asset Turnover

The segment asset turnover ratio, which measures the efficiency of asset use to generate sales, displayed relative stability with minor fluctuations. Starting at 2.41 in 2019, it peaked at 2.58 in 2021, implying improved efficiency, before slightly decreasing and stabilizing around 2.42 to 2.49 in subsequent years. This suggests that the segment maintained a consistent ability to generate sales from its asset base, with transient improvements.

In summary, the beauty segment exhibited steady revenue growth supported by increased asset investment, while maintaining stable operational efficiency as reflected in the segment asset turnover ratio. The slight dip in asset turnover after 2021, alongside the stabilization of assets, may warrant ongoing monitoring to ensure sustained asset utilization effectiveness.

The analysis of the annual data for the Grooming segment reveals several key trends over the six-year period ending June 30, 2024.

Net Sales

Net sales exhibited variability throughout the period. Initially, there was a decline from $6,199 million in 2019 to $6,069 million in 2020. This was followed by a recovery phase where sales increased to $6,440 million in 2021 and continued to $6,587 million in 2022. However, sales slightly decreased again in 2023 to $6,419 million before rising to $6,654 million in 2024, marking the highest value in the timeframe. Overall, net sales show a moderate upward trajectory with some fluctuations.

Total Assets

Total assets remained relatively stable from 2019 through 2023, hovering around the range of approximately $20,400 million to $20,800 million. Notably, there was a decline in total assets in 2024 to $19,082 million, the lowest level in the analyzed period. This indicates a reduction in asset base in the most recent year after a largely steady asset position.

Segment Asset Turnover

The segment asset turnover ratio, which measures efficiency in using assets to generate sales, shows a slight but consistent improvement over the years. Beginning at 0.30 in 2019, it dipped marginally to 0.29 in 2020 but then steadily increased to 0.31 in 2021, 0.32 in 2022, and maintained near that level at 0.31 in 2023. In 2024, it rose notably to 0.35, indicating improved efficiency in asset utilization to generate sales during the latest year, despite the decrease in total assets.

In summary, the Grooming segment has experienced fluctuating but generally increasing net sales with stable total assets until a recent decline. The improvement in asset turnover ratio suggests enhanced operational efficiency and better utilization of assets in generating revenue, particularly noticeable in the most recent year.

The analysis of the Health Care reportable segment reveals a consistent growth trajectory in net sales over the six-year period. Starting at 8,218 million US dollars in 2019, net sales showed a steady year-over-year increase, reaching 11,793 million US dollars in 2024. This progression highlights a robust expansion in revenue generation within this segment.

Total assets within the segment exhibited minor fluctuations but generally remained stable throughout the observation period. Beginning at 7,708 million US dollars in 2019, total assets increased slightly to a peak of 8,480 million US dollars in 2023 before a modest decrease to 8,416 million US dollars in 2024. This stability suggests efficient asset management despite the growth in sales.

The segment asset turnover ratio, representing the efficiency of asset utilization in generating sales, demonstrated a positive upward trend. Starting from 1.07 in 2019, the ratio rose steadily, peaking at 1.40 in 2024. The increase in this ratio indicates improving operational efficiency, with more sales being produced per unit of asset over time. Notably, a slight dip occurred in 2023 from 1.37 in 2022 to 1.32, but the ratio recovered in 2024.

Net Sales

Consistent annual growth from 8,218 million to 11,793 million US dollars, indicating strong revenue expansion.

Total Assets

Relatively stable with modest increases and minor recent declines, suggesting controlled asset base management.

Segment Asset Turnover

General upward trend from 1.07 to 1.40 signifies improved asset efficiency, with a small temporary dip in 2023.

Overall, the data indicates that the segment has effectively increased sales while maintaining a stable asset base and enhancing the efficiency with which those assets generate revenue. These patterns reflect positively on the segment's operational management and market performance over the analyzed timeframe.

Net Sales

Net sales have consistently increased over the examined period from June 30, 2019, to June 30, 2024. Starting at $22,080 million in 2019, sales rose annually to reach $29,495 million by 2024. This represents a steady growth pattern, with the largest year-on-year increases observed between 2020 and 2022, after which the growth rate remains positive but shows a slight moderation.

Total Assets

Total assets also experienced a gradual upward trend during the period. The asset base increased from $7,620 million in 2019 to $8,907 million in 2024. The growth in total assets appears steady but less pronounced compared to net sales, indicating controlled asset expansion relative to the sales growth.

Segment Asset Turnover

The segment asset turnover ratio, which measures the efficiency of asset use in generating sales, shows consistent improvement across the years. It moved from 2.90 in 2019 to 3.31 in 2024. This trend suggests increasing efficiency in utilizing assets to produce sales, signifying better operational performance and potentially higher profitability at the segment level.

Net Sales

Over the six-year period from June 30, 2019, to June 30, 2024, net sales exhibited a steady upward trend. The values increased from $17,806 million in 2019 to $20,277 million in 2024. This represents a cumulative growth of approximately 13.8%, with consistent year-over-year increments, although the pace of increase appears to moderate somewhat in the final year.

Total Assets

Total assets showed a slight declining trend across the same timeframe. Beginning at $9,271 million in 2019, total assets decreased to $8,497 million by 2024. The reduction was gradual and relatively modest, indicating a stable asset base with minor fluctuations, rather than any significant divestiture or acquisition activity affecting total assets.

Segment Asset Turnover

The segment asset turnover ratio increased consistently from 1.92 in 2019 to 2.39 in 2024. This reflects an improvement in the efficiency with which the segment utilized its assets to generate sales. The steady rise indicates enhanced productivity and possibly better asset management or operational improvements contributing to higher sales per unit of assets.

Summary Insights

The data reveals a positive growth trajectory in sales performance alongside a slight contraction in total assets. The concurrent increase in asset turnover ratio suggests improved operational efficiency, implying that the segment is generating more revenue from a slightly smaller asset base. This pattern is indicative of effective asset utilization and possibly improved margin management within the Baby, Feminine & Family Care segment.

Capital Expenditures

There is a clear downward trend in capital expenditures over the six-year period. The value decreases steadily from US$634 million in June 2019 to US$280 million in June 2024, showing a reduction of more than 55%. This consistent decline likely indicates a scaling back of investment in fixed assets or infrastructure within the segment.

Depreciation and Amortization

In contrast to capital expenditures, depreciation and amortization expense shows a consistent upward trend. It increased from US$272 million in June 2019 to US$399 million in June 2024, representing a notable growth. The rising depreciation expense may reflect an accumulation of assets from prior periods being expensed or changes in asset composition.

Segment Capital Expenditures to Depreciation Ratio

This ratio declines steadily from 2.33 in June 2019 to 0.7 in June 2024. The ratio falling below 1 from 2022 onward indicates that the annual capital expenditures are less than annual depreciation expenses, suggesting the segment is investing less in maintaining or expanding its asset base compared to the rate at which assets are being depreciated. This trend could imply aging assets or a strategic shift towards less capital-intensive operations.

Capital Expenditures

The capital expenditures exhibit a fluctuating trend over the analyzed period. Starting at $367 million in 2019, there is a noticeable decline to $260 million by 2022. However, the expenditures recover subsequently, reaching $337 million in 2024, which is the highest point after 2019.

Depreciation and Amortization

Depreciation and amortization consistently decrease from $429 million in 2019 to a level of $335 million in 2023 and 2024, maintaining equality in the last two periods. This steady decline suggests a reduction in the amortization base or asset aging within the segment.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation illustrates an initial decrease from 0.86 in 2019 to 0.72 in 2022, indicating capital spending was falling below the level of asset depreciation. From 2022 onward, this ratio increases sharply to 1.01 by 2024, signifying that capital expenditures are slightly surpassing depreciation, possibly reflecting increased investment in the asset base during the recent period.

Overall Analysis

The data indicates a period of decreasing investment followed by renewed capital spending in the latest years. Concurrently, depreciation consistently declines, potentially due to asset maturity or disposal. The rising capital expenditures to depreciation ratio in recent years suggests a strategic shift towards asset enhancement or expansion within the segment.

Capital Expenditures

Capital expenditures show a generally upward trend over the analyzed periods. Starting at 363 million US dollars in mid-2019, expenditures decreased slightly in mid-2020 to 338 million, but then increased consistently each subsequent year, reaching 524 million US dollars by mid-2024. This indicates a progressively higher investment in fixed assets or expansion within the segment.

Depreciation and Amortization

Depreciation and amortization expenses exhibit a moderate increase over the timeframe. Beginning at 294 million US dollars in mid-2019, the amount rose to a peak of 376 million in mid-2022 before slightly declining to 352 million in mid-2023, and then increasing again to 381 million in mid-2024. This pattern suggests fluctuating asset base changes but an overall gradual increase in the expense associated with capital assets.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation illustrates the relative level of investment compared to asset consumption. Starting at 1.23 in 2019, the ratio dipped below 1.0 in 2020 and 2021 (0.97 and 0.98 respectively), indicating that capital expenditures were slightly less than depreciation, potentially reflecting reduced reinvestment during those years. After 2021, the ratio rose to 1.09 in 2022 and further increased to 1.32 and 1.38 in 2023 and 2024 respectively. This upward trend suggests increased reinvestment activity exceeding asset depreciation, which may point to expansion, modernization, or replacement of assets within the segment.

The annual data for the Fabric & Home Care segment reveals several notable trends over the six-year period from June 30, 2019, to June 30, 2024.

Capital Expenditures

Capital expenditures exhibit some variability, starting at $984 million in 2019, dipping to $887 million in 2020, followed by a general upward movement through subsequent years, reaching a peak of $1,076 million in 2024. This indicates a renewed investment focus in recent years, particularly notable in the last recorded year.

Depreciation and Amortization

Depreciation and amortization expenses show a consistent increasing trend throughout the period. Beginning at $557 million in 2019, the figure steadily rises each year, reaching $710 million by 2024. This upward trend aligns with ongoing asset base growth or changes in asset composition within the segment.

Segment Capital Expenditures to Depreciation Ratio

The ratio of segment capital expenditures to depreciation generally decreases from 1.77 in 2019 to 1.45 in 2023, with a slight recovery to 1.52 in 2024. The downward trend suggests that capital spending relative to the rate of asset depreciation was more conservative during several years, although the slight uptick in 2024 might reflect a renewed emphasis on capital investment efficiency or growth.

Overall, the data suggests measured but increasing capital investment in the Fabric & Home Care segment, accompanied by gradually rising depreciation expenses. The fluctuations in the capital expenditure to depreciation ratio imply careful management of asset investment relative to asset wear and amortization, with recent indications of a moderate increase in investment intensity.

Capital Expenditures

Capital expenditures exhibited a fluctuating yet generally upward trend over the six-year period. Starting at $819 million in 2019, the figure saw a slight decline in 2020 to $764 million. However, it rebounded to $814 million in 2021 and continued to increase significantly in the following years, reaching a peak of $994 million in 2023 before experiencing a marginal decrease to $979 million in 2024.

Depreciation and Amortization

This financial metric displayed a gradual downward trend from 2019 through 2023, decreasing from $861 million to $804 million. In 2024, there was a slight uptick to $824 million, interrupting the declining pattern observed in prior years.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation demonstrated a clear increasing trend throughout the period. Beginning just below parity at 0.95 in 2019, it dipped slightly in 2020 to 0.91 but then consistently rose year-over-year to reach 1.24 in 2023. Although there was a minor decrease to 1.19 in 2024, the ratio remained well above one, indicating that capital expenditures consistently exceeded depreciation expense in most years.

Summary Insights

Overall, the segment appears to have escalated its investment in capital assets over time, as evidenced by rising capital expenditures and an increasing capital expenditures to depreciation ratio. Despite fluctuations, capital expenditures generally outpaced depreciation from 2021 onwards, suggesting continued asset base expansion or modernization. The reduction in depreciation expenses until 2023, followed by a slight rise, may imply changes in the asset portfolio lifespan or amortization policies. The sustained investment trend highlights a commitment to maintaining or growing operational capacity within the segment.