Procter & Gamble Company (PG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 21,074,000 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 52,284,000 | 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 |
| 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% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $21,074,000K ÷ ($—K + $52,284,000K)
= 40.31%
The analysis of Procter & Gamble Company's return on total capital (ROTC) over the specified periods reveals a generally strong and stable profitability trend. Throughout the reporting periods, the ROTC consistently remained within a substantial range, predominantly fluctuating between approximately 35.87% and 41.99%.
Beginning with a ROTC of 35.87% as of September 30, 2020, there was a gradual upward trajectory, culminating in a peak of 41.99% on September 30, 2023. This increase indicates effective utilization of total capital to generate earnings over this period, reflecting operational efficiency and prudent capital management. Notably, the highest ROTC was observed in September 2023, suggesting a period of optimal performance.
Following this peak, a slight decline occurred, with the ROTC decreasing to 40.72% in December 2023 and further slightly lowering to 40.09% in March 2024. The subsequent trend displays some variability, with the ROTC decreasing to 36.70% in September 2024 before recovering to 39.80% in December 2024 and again increasing to 40.31% in June 2025.
Overall, the data indicates a consistent ability of the company to generate returns on its total capital, with periodic fluctuations attributable likely to evolving market conditions, strategic investments, or operational adjustments. The stability and resilience of the ROTC over multiple fiscal periods reflect the company's capacity to maintain efficient capitalization and profitability levels despite external and internal dynamics.