Procter & Gamble Company (PG)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 125,231,000 | 122,370,000 | 120,829,000 | 117,208,000 | 119,307,000 |
| Total stockholders’ equity | US$ in thousands | 52,284,000 | 50,286,000 | 46,777,000 | 46,589,000 | 46,378,000 |
| Financial leverage ratio | 2.40 | 2.43 | 2.58 | 2.52 | 2.57 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $125,231,000K ÷ $52,284,000K
= 2.40
The financial leverage ratio of Procter & Gamble Company over the specified period exhibits a relatively stable trend with slight fluctuations. As of June 30, 2021, the ratio stood at 2.57, indicating that for every dollar of equity, the company had approximately $2.57 in total assets funded through debt. By June 30, 2022, the ratio slightly decreased to 2.52, suggesting a marginal reduction in leverage, potentially reflecting a strategic move towards slightly less indebtedness or a change in capital structure.
The ratio marginally increased to 2.58 as of June 30, 2023, returning to near its previous levels, which may indicate a minor shift back toward higher leverage possibly due to increased borrowing or asset growth financed through debt. Conversely, the ratio declined to 2.43 by June 30, 2024, marking the lowest level within the observed period, implying a reduction in leverage — perhaps through debt repayment or increased equity financing. This downward trend continued into June 30, 2025, reaching 2.40, the lowest ratio in the five-year span, further indicating a sustained pattern of decreasing leverage.
Overall, the financial leverage ratio demonstrates that Procter & Gamble has maintained a moderate but gradually declining leverage position over this period. This trend suggests a strategic preference for lower financial risk, potentially enhancing financial stability and reducing vulnerability to economic fluctuations. The near-stability around the 2.5 mark indicates consistent management of debt levels relative to equity, ensuring a balanced approach to leverage that aligns with industry standards for stable, consumer-focused corporations.