Procter & Gamble Company (PG)

Total asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	84,039,000	82,006,000	80,187,000	76,118,000	70,950,000
Total assets	US$ in thousands	122,370,000	120,829,000	117,208,000	119,307,000	120,700,000
Total asset turnover		0.69	0.68	0.68	0.64	0.59

June 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $84,039,000K ÷ $122,370,000K
= 0.69

The total asset turnover ratio of Procter & Gamble Company has been relatively stable over the past five years, ranging between 0.59 and 0.69. This ratio indicates how efficiently the company is generating revenue from its total assets. A higher ratio suggests that the company is effectively utilizing its assets to generate sales.

In this case, the ratios hovering around the 0.68 mark for the past three years, with a slight improvement in the most recent year to 0.69, indicate consistent performance in asset utilization. The increase in the ratio from 0.59 in 2020 to 0.69 in 2024 is a positive sign as it suggests that P&G is improving its efficiency in generating revenue from its asset base.

Overall, a total asset turnover ratio of around 0.68 to 0.69 suggests that Procter & Gamble Company is efficiently managing its assets to generate sales, which is a favorable indication of the company's operational efficiency in utilizing its resources effectively.