Procter & Gamble Company (PG)
Return on equity (ROE)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 15,974,000 | 14,879,000 | 14,653,000 | 14,742,000 | 14,306,000 |
| Total stockholders’ equity | US$ in thousands | 52,284,000 | 50,286,000 | 46,777,000 | 46,589,000 | 46,378,000 |
| ROE | 30.55% | 29.59% | 31.33% | 31.64% | 30.85% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $15,974,000K ÷ $52,284,000K
= 30.55%
The analysis of Procter & Gamble Company's return on equity (ROE) over the specified period indicates a high level of profitability and efficient use of shareholder equity.
As of June 30, 2021, the ROE stood at 30.85%, reflecting a strong capacity for generating profit relative to shareholders' equity. In the subsequent year, 2022, the ROE experienced a modest increase to 31.64%, suggesting an improvement in profitability or efficiency in utilizing equity capital during that period.
However, by June 30, 2023, the ROE slightly declined to 31.33%, indicating a minor reduction in profitability or operational efficiency, albeit remaining at a high level relative to industry benchmarks. Moving forward to June 30, 2024, the ROE decreased further to 29.59%, marking the most significant drop within the analyzed timeframe, which may be attributable to increased equity, changes in profit margins, or other operational factors.
By June 30, 2025, the ROE showed a partial recovery, rising back to 30.55%. This suggests a stabilization in profitability and efficiency, bringing the ROE close to its earlier levels.
Overall, the company's ROE has remained consistently high over the five-year period, indicative of strong management efficiency and effective capital utilization. The fluctuations observed are within a narrow range, pointing to a relatively stable profitability trend, with slight variations possibly linked to cyclical factors, market conditions, or strategic business decisions.