Procter & Gamble Company (PG)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	14,879,000	14,653,000	14,742,000	14,306,000	13,027,000
Total stockholders’ equity	US$ in thousands	50,559,000	47,065,000	46,854,000	46,654,000	46,878,000
ROE		29.43%	31.13%	31.46%	30.66%	27.79%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $14,879,000K ÷ $50,559,000K
= 29.43%

Procter & Gamble Company's return on equity (ROE) has shown a relatively stable trend over the past five years, ranging from 27.79% in 2020 to 31.46% in 2022. The company's ROE decreased slightly to 29.43% in 2024.

ROE is a measure of a company's profitability by indicating how efficiently it is using shareholders' equity to generate profits. Procter & Gamble's ROE values indicate that the company has been effectively utilizing its equity to generate returns for shareholders, with consistently high values above 27%.

The slight decrease in ROE in 2024 may be worth investigating further to understand the factors contributing to this change and whether it is a temporary fluctuation or a more significant trend. Overall, Procter & Gamble's strong and relatively stable ROE values suggest that the company has been successful in maximizing shareholder value through efficient use of its equity.