Procter & Gamble Company (PG)
Profitability ratios
Return on sales
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 51.16% | 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% |
| Operating profit margin | 24.26% | 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% |
| Pretax margin | 23.93% | 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% |
| Net profit margin | 18.95% | 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% |
The profitability ratios of Procter & Gamble (P&G) over the period analyzed demonstrate a pattern of gradual variation with some noteworthy trends.
Starting with the gross profit margin, the data indicates a general upward trajectory from approximately 50.78% as of September 2020, culminating in a peak of 51.41% in September 2024, with a slight decrease thereafter. The margin shows an overall improving trend, especially notable from late 2023 onward, where it approaches and surpasses 51%, signaling enhanced efficiency in managing cost of goods sold relative to sales.
The operating profit margin reflects a similar pattern of stability with minor fluctuations. It fluctuated narrowly around 23% from late 2020 to mid-2024, with a slight decrease reaching about 21.61% by December 2022. From late 2023, the operating margin begins to improve, reaching approximately 24.26% by June 2025, suggesting improved operational efficiency and effective cost management.
The pretax margin mirrors these trends, maintaining a range close to 23%, with marginal fluctuations. It declines slightly in late 2022 but increases again from early 2023, reaching nearly 23.93% by June 2025. This indicates a modest recovery in profitability at the pre-tax level, possibly reflecting better control over expenses or improved revenue mix.
The net profit margin, indicative of profitability after all expenses and taxes, exhibits a pattern of slight decline over the period, generally remaining in the range of approximately 17.6% to 18.9%. The lowest point appears around late 2022 at approximately 17.79%, with a gradual upward trend resuming in 2023 and reaching about 18.95% by June 2025. The recent improvements suggest enhanced bottom-line profitability due to factors such as cost control, revenue growth, or tax efficiency.
Overall, P&G shows a consistent pattern of stability in profitability metrics, with marginal declines in certain periods and subsequent recoveries. The trend towards higher gross and operating margins in recent years indicates efforts to improve margin management and operational efficiency, which are reflected in the rising pretax and net profit margins towards the latter part of the analyzed period.
Return on investment
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.33% | 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% |
| Return on assets (ROA) | 12.76% | 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% |
| Return on total capital | 40.31% | 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% |
| Return on equity (ROE) | 30.55% | 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% |
The profitability ratios of Procter & Gamble (P&G) over the analyzed period reflect a consistent level of operational efficiency and return generation, with subtle fluctuations indicating stability rather than volatility.
Operating Return on Assets (Operating ROA):
The Operating ROA demonstrates a gradual upward trend from 13.93% as of September 30, 2020, reaching a peak of 16.33% by June 30, 2025. This ratio indicates the company’s ability to generate profit from its operating assets, with the trajectory suggesting improved operational efficiency over time. The steady increase implies effective management of operating assets and cost controls, translating into enhanced profitability from core business functions.
Return on Assets (ROA):
The ROA, which includes the impact of financing and non-operating items, shows a similar but slightly more fluctuating trend. Starting at 11.44% in September 2020, it exhibits minor variations, with an overall upward trajectory culminating at approximately 12.76% by June 2025. The modest fluctuations around a generally increasing trend suggest that P&G maintains a stable capacity to generate earnings relative to its total assets, balancing operational performance with financial structure.
Return on Total Capital:
This ratio reflects profit efficiency relative to all capital invested, including debt and equity. It exhibits a generally rising pattern, increasing from 35.87% in September 2020 to a peak of 41.99% in September 2023, before slight declines and stabilization around 40% in subsequent periods. The upward trend indicates effective utilization of both debt and equity financing to generate earnings. The ratios suggest diligent capital management and an emphasis on maximizing returns across all invested capital.
Return on Equity (ROE):
ROE ratios demonstrate the company's ability to generate profits attributable to shareholders’ equity. Starting at 28.46% in September 2020, ROE fluctuates slightly but remains within a competitive range, reaching a high of approximately 33.06% in September 2022. Subsequently, there is a general decline, with ratios dipping below 31% in 2023 and continuing downward trends into late 2024, before a slight recovery projected in mid-2025. The fluctuations may reflect changes in profit margins, leverage, and equity base, but overall, the ratios remain indicative of a profitable organization with a strong shareholder return foundation.
Summary:
Overall, Procter & Gamble’s profitability ratios reveal a company with resilient and improving operational efficiency, sustained profitability from assets, and effective use of capital. The upward trends in Operating ROA and Return on Total Capital suggest strategic focus on operational effectiveness and capital utilization. While ROE has experienced some fluctuations, it generally aligns with the company's capacity to generate shareholder value. The stability and gradual improvements across all profitability metrics point to prudent management and steady performance in a competitive industry landscape.
See also:
Procter & Gamble Company Profitability Ratios (Quarterly Data)