Procter & Gamble Company (PG)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 19,686,000 | 19,057,000 | 18,434,000 | 18,117,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 52,284,000 | 50,286,000 | 46,777,000 | 46,589,000 | 46,378,000 |
| Return on total capital | 0.00% | 39.15% | 40.74% | 39.57% | 39.06% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $52,284,000K)
= 0.00%
The analysis of Procter & Gamble Company's return on total capital over the specified period reveals a general pattern of stability with slight fluctuations. As of June 30, 2021, the company's return on total capital stood at 39.06%, indicating a strong utilization of its capital base to generate earnings. This metric experienced a marginal increase in the following year, reaching 39.57% as of June 30, 2022, reflecting ongoing efficiency in capital deployment.
The upward trend continued into June 30, 2023, with the return rising to 40.74%, suggesting an improvement in the company's ability to generate returns on its total capital. This increase could be attributed to operational efficiencies, effective cost management, or favorable market conditions during that period.
However, a decline was observed in the subsequent year, with the return decreasing to 39.15% as of June 30, 2024. Although still robust, this reduction may signal slight shifts in operational performance or changes in capital structure affecting overall profitability.
By June 30, 2025, the data indicates a return of 0.00%, which is likely a placeholder or a data anomaly, as such a figure would imply either the absence of total capital or earnings, or a reporting error. Given the previous year’s figures, it is improbable that the return has entirely disappeared, and this figure warrants further clarification or data validation for accurate interpretation.
Overall, the company's return on total capital has historically remained in a high range, reflecting consistent and efficient use of capital to generate earnings. The slight fluctuations suggest a generally stable operational environment, with no significant deviations from its historical performance until the anomalous figure in 2025. Such a trend underscores the company's capacity for maintaining profitability relative to its invested capital over recent years.