Procter & Gamble Company (PG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 20,428,000 | 20,367,000 | 19,026,000 | 19,685,000 | 20,070,000 | 19,764,000 | 20,026,000 | 19,109,000 | 18,401,000 | 18,071,000 | 18,410,000 | 18,434,000 | 18,350,000 | 18,153,000 | 17,828,000 | 18,117,000 | 18,054,000 | 17,669,000 | 17,281,000 | 16,299,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 52,272,000 | 51,168,000 | 51,840,000 | 50,286,000 | 50,058,000 | 48,534,000 | 47,692,000 | 46,777,000 | 45,140,000 | 44,455,000 | 44,075,000 | 46,589,000 | 45,478,000 | 44,618,000 | 46,111,000 | 46,378,000 | 46,596,000 | 48,181,000 | 48,182,000 | 46,521,000 |
| 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% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $20,428,000K ÷ ($—K + $52,272,000K)
= 39.08%
The Procter & Gamble Company’s return on total capital (ROTC) has demonstrated a generally upward trending trajectory over the observed period, reflecting an improvement in the company’s efficiency in generating profits from its total capital base. Beginning at 35.04% as of June 30, 2020, the ROTC increased steadily, reaching a peak of 41.99% on September 30, 2023. This period of growth indicates enhanced capital utilization and profitability.
During this timeframe, there are minor fluctuations, with ROTC values oscillating within a relatively narrow range, suggesting stability in the company’s capacity to convert total capital into earnings. For instance, after reaching the peak in September 2023, the value slightly declined to 40.72% by December 31, 2023, before experiencing a temporary decrease to 36.70% on September 30, 2024. Subsequently, the metric recovered to around 39.80% in December 2024 and slightly declined again to 39.08% by March 2025.
The overall pattern indicates a strong and consistent capacity for generating returns on total capital, with the most notable growth occurring in the period between mid-2020 and late 2023. The declines observed post-September 2023 appear to be transient, possibly reflecting short-term fluctuations or adjustments within the company’s capital structure or operational environment.
In conclusion, the data reveals that Procter & Gamble has maintained a high and relatively stable ROTC over the analyzed period, with notable periods of improvement and some minor volatility, ultimately illustrating a robust capacity to generate profitability from its total capital base over time.