Procter & Gamble Company (PG)
Profitability ratios
Return on sales
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 51.29% | 51.34% | 51.41% | 51.39% | 51.09% | 50.36% | 49.06% | 47.86% | 46.96% | 46.60% | 47.01% | 47.43% | 48.32% | 49.27% | 50.31% | 51.25% | 51.57% | 51.26% | 50.78% | 50.32% |
| Operating profit margin | 23.81% | 23.57% | 22.14% | 22.07% | 22.39% | 22.17% | 22.77% | 22.11% | 21.70% | 21.61% | 22.03% | 22.21% | 22.30% | 22.36% | 22.98% | 23.63% | 23.94% | 23.79% | 23.04% | 22.14% |
| Pretax margin | 23.25% | 23.06% | 21.57% | 22.32% | 22.75% | 22.42% | 23.01% | 22.38% | 21.95% | 21.86% | 22.32% | 22.44% | 22.49% | 22.61% | 22.50% | 23.14% | 23.39% | 23.16% | 23.17% | 22.32% |
| Net profit margin | 18.46% | 18.35% | 17.06% | 17.71% | 18.00% | 17.60% | 18.30% | 17.87% | 17.69% | 17.79% | 18.11% | 18.38% | 18.33% | 18.52% | 18.33% | 18.79% | 18.97% | 18.72% | 18.92% | 18.36% |
The profitability ratios for Procter & Gamble over the specified period reflect a consistent performance with notable trends. The gross profit margin exhibits a gradual increase from approximately 50.32% in June 2020 to 51.39% by June 2024, reaching 51.29% in March 2025. This upward trajectory indicates an improvement in cost management and pricing strategies, contributing to a stronger ability to convert sales revenue into gross profit.
The operating profit margin demonstrates resilience, maintaining an approximate range of 22.14% to 23.94% during the period. After fluctuations, the margin shows a slight upward trend starting from 21.61% at the end of 2022 to reach 23.81% by March 2025. This suggests effective control over operating expenses relative to revenue, supporting steady operating profitability.
The pretax margin remains stable around 22% to 23%, with minor fluctuations. It reaches a high of 23.39% in March 2021 and, after some variation, attains 23.25% in March 2025. This stability indicates consistent pretax profitability despite external operational and market pressures.
The net profit margin follows a similar pattern, fluctuating between 17.60% and 18.97%. It peaks at 18.97% in March 2021 and concludes at approximately 18.46% in March 2025. The slight decrease over the recent years reflects the impact of taxes and other non-operational expenses, yet overall profitability remains steady.
In summary, Procter & Gamble's profitability ratios depict a stable yet gradually improving financial performance over the period. Margins at various levels have demonstrated resilience and modest growth, highlighting effective cost management, pricing power, and operational efficiency. The company's ability to sustain margins over multiple years indicates a robust profitability profile within the consumer staples sector.
Return on investment
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.25% | 16.21% | 14.69% | 15.15% | 15.74% | 15.42% | 15.48% | 15.01% | 14.66% | 14.74% | 15.25% | 15.20% | 14.77% | 14.43% | 14.81% | 15.08% | 15.35% | 14.65% | 13.93% | 13.01% |
| Return on assets (ROA) | 12.60% | 12.62% | 11.32% | 12.16% | 12.65% | 12.24% | 12.43% | 12.13% | 11.95% | 12.13% | 12.53% | 12.58% | 12.14% | 11.95% | 11.82% | 11.99% | 12.16% | 11.53% | 11.44% | 10.79% |
| Return on total capital | 39.08% | 39.80% | 36.70% | 39.15% | 40.09% | 40.72% | 41.99% | 40.85% | 40.76% | 40.65% | 41.77% | 39.57% | 40.35% | 40.69% | 38.66% | 39.06% | 38.75% | 36.67% | 35.87% | 35.04% |
| Return on equity (ROE) | 29.64% | 30.25% | 27.62% | 29.59% | 30.22% | 30.43% | 31.94% | 31.33% | 31.73% | 32.12% | 33.06% | 31.64% | 32.09% | 32.52% | 30.67% | 30.85% | 30.47% | 28.74% | 28.46% | 28.00% |
The analysis of Procter & Gamble Company's profitability ratios over the period from June 2020 through March 2025 reveals a generally positive trend characterized by sustained profitability and incremental improvements in several key metrics.
Operating Return on Assets (Operating ROA):
This ratio indicates the company's efficiency in generating operating income relative to its total assets. Starting at 13.01% in June 2020, it exhibited a steady upward trajectory, reaching a peak of 15.74% in March 2024 before experiencing a slight decline to 15.15% in June 2024 and further to 14.69% in September 2024. It subsequently increased again to 16.21% in December 2024 and maintained a high level of 16.25% by March 2025. This trend points to effective utilization of assets in generating operational earnings, with notable improvements particularly in late 2024 and early 2025.
Return on Assets (ROA):
The ROA, measuring the overall efficiency of asset utilization in generating net income, saw a gradual increase from 10.79% in June 2020 to approximately 12.65% in March 2024, with some fluctuations. The ratio dipped slightly to 11.32% in September 2024 but recovered to 12.62% by December 2024, ending at 12.60% in March 2025. This indicates that the company's ability to convert assets into bottom-line profit has improved modestly over this period, reflecting operational stability and efficiency.
Return on Total Capital:
This metric captures overall profitability considering both debt and equity financing. Beginning at 35.04% in June 2020, it rose steadily, surpassing 40% by December 2021 and maintaining levels around 40% through March 2023. The ratio peaked at 41.99% in September 2023, before declining to approximately 39% in early 2024 and ending at 39.08% in March 2025. The data suggests consistent high returns on total capital employed, indicative of effective capital management, though some variability exists.
Return on Equity (ROE):
ROE, reflecting shareholders' return, evolved from 28.00% in June 2020 to over 32% in December 2021. It hovered around mid-31% into 2022 and 2023, peaking at 33.06% in September 2022. Subsequently, ROE declined to 30.43% by December 2023 and further decreased to approximately 29.64% in March 2025. Despite this decline, the ROE remained at relatively high levels, signifying persistent profitability and effective use of shareholders’ equity.
Overall Summary:
The company's profitability ratios demonstrate a generally positive performance trend over the analyzed period. The operating ROA and ROA ratios exhibit consistent improvement, reflecting enhanced operational efficiency and asset management. The return on total capital remains high, underscoring effective overall capital utilization, while the ROE maintains strong levels, indicating robust profitability attributable to shareholders. Slight fluctuations towards the end of the period may suggest margin compression or adjustments in operating efficiency, yet the ratios remain elevated, signifying a resilient profitability profile for Procter & Gamble.
See also:
Procter & Gamble Company Profitability Ratios (Quarterly Data)