Procter & Gamble Company (PG)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 18,545,000 | 18,134,000 | 17,813,000 | 17,986,000 | 15,706,000 |
| Total assets | US$ in thousands | 122,370,000 | 120,829,000 | 117,208,000 | 119,307,000 | 120,700,000 |
| Operating ROA | 15.15% | 15.01% | 15.20% | 15.08% | 13.01% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $18,545,000K ÷ $122,370,000K
= 15.15%
Analyzing the operating return on assets (ROA) of Procter & Gamble Company over the past five years reveals a consistent performance in generating operating profits from its assets. The operating ROA has ranged from 13.01% in 2020 to 15.20% in 2022, with a slight fluctuation in between. This indicates that, on average, the company generated approximately 15% of operating income for every dollar of assets employed in its operations. The stability in operating ROA suggests that Procter & Gamble has been effectively utilizing its assets to generate profits consistently over the years, demonstrating operational efficiency and effective management of resources. It is essential for the company to continue monitoring and improving its operating ROA to ensure sustained profitability and value creation for its stakeholders in the future.
Peer comparison
Jun 30, 2024