Procter & Gamble Company (PG)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 20,451,000 | 18,545,000 | 18,134,000 | 17,813,000 | 17,986,000 |
| Total assets | US$ in thousands | 125,231,000 | 122,370,000 | 120,829,000 | 117,208,000 | 119,307,000 |
| Operating ROA | 16.33% | 15.15% | 15.01% | 15.20% | 15.08% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $20,451,000K ÷ $125,231,000K
= 16.33%
The operating return on assets (ROA) for Procter & Gamble (P&G) demonstrates a relatively stable performance with slight fluctuations over the analyzed period from June 30, 2021, to June 30, 2025.
In fiscal year 2021, the operating ROA was reported at 15.08%, indicating that P&G generated approximately 15.08 cents of operating income for every dollar of assets employed. This metric experienced a marginal increase in the subsequent fiscal year, reaching 15.20% in 2022, reflecting a modest enhancement in operational efficiency or asset utilization.
However, a slight decrease was observed in 2023, with the operating ROA declining to 15.01%. This minor reduction could suggest some challenges or variations in operating performance relative to asset levels during that period. Despite this dip, the operating ROA remained relatively high, signifying ongoing effective management of operating assets.
In the fiscal year 2024, the operating ROA exhibited a slight recovery, rising to 15.15%. This indicates a stabilization in operational efficiency following the prior year's marginal decline. The most notable change occurs in 2025, when the operating ROA increased to 16.33%. This upward movement represents a significant improvement, highlighting a noteworthy enhancement in the company's ability to generate operating income from its assets. It could be attributed to better cost management, improved sales performance, or strategic operational efficiencies.
Overall, the trend in Procter & Gamble’s operating ROA over these years illustrates consistency with a gradual upward trajectory in the later years, culminating in a marked increase in 2025. This progression suggests a positive outlook regarding the company's operational effectiveness and asset utilization efficiency in recent fiscal periods.