Procter & Gamble Company (PG)

Debt-to-equity ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	25,269,000	24,378,000	22,848,000	23,099,000	23,537,000
Total stockholders’ equity	US$ in thousands	50,559,000	47,065,000	46,854,000	46,654,000	46,878,000
Debt-to-equity ratio		0.50	0.52	0.49	0.50	0.50

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $25,269,000K ÷ $50,559,000K
= 0.50

The debt-to-equity ratio of Procter & Gamble Company has remained relatively stable over the past five years, ranging from 0.49 to 0.52. This indicates that the company has maintained a balanced mix of debt and equity in its capital structure. A ratio of 0.50 means that for every dollar of equity, the company has $0.50 in debt.

A debt-to-equity ratio of around 0.50 suggests that Procter & Gamble relies more on equity financing than debt financing to support its operations and growth. This can be viewed positively as it indicates a lower financial risk compared to companies with higher debt levels.

Overall, the consistent debt-to-equity ratio of Procter & Gamble Company demonstrates a prudent approach to managing its capital structure, balancing the benefits of debt financing with the risks associated with higher leverage.