Procter & Gamble Company (PG)

Financial leverage ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Total assets	US$ in thousands	122,370,000	119,598,000	120,709,000	122,531,000	120,829,000	119,851,000	117,715,000	116,282,000	117,208,000	120,217,000	121,416,000	119,669,000	119,307,000	116,778,000	120,112,000	119,899,000	120,700,000	118,560,000	111,723,000	114,058,000
Total stockholders’ equity	US$ in thousands	50,559,000	50,334,000	48,829,000	48,014,000	47,065,000	45,421,000	44,725,000	44,334,000	46,854,000	45,746,000	44,893,000	46,408,000	46,654,000	46,919,000	48,540,000	48,576,000	46,878,000	45,941,000	45,908,000	46,984,000
Financial leverage ratio		2.42	2.38	2.47	2.55	2.57	2.64	2.63	2.62	2.50	2.63	2.70	2.58	2.56	2.49	2.47	2.47	2.57	2.58	2.43	2.43

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $122,370,000K ÷ $50,559,000K
= 2.42

The financial leverage ratio of Procter & Gamble Company has fluctuated over the past few quarters, ranging from 2.38 to 2.70. A higher financial leverage ratio indicates that the company relies more on debt to finance its operations, while a lower ratio suggests a greater reliance on equity.

The trend shows that the financial leverage ratio has generally been on the higher side, peaking at 2.70 in the first quarter of 2022 and reaching a low of 2.38 in the second quarter of 2024. This indicates that the company has been gradually increasing its debt levels relative to its equity over the analyzed periods.

A financial leverage ratio of 2.42 as of June 30, 2024, implies that the company's total assets are financed by debt at approximately 2.42 times the amount of equity. This level of financial leverage suggests that Procter & Gamble Company has a moderate reliance on debt to fund its operations and investments.

Further analysis would be needed to assess the implications of this fluctuation in the financial leverage ratio on the company's overall financial health, including its ability to meet debt obligations, manage financial risks, and generate returns for its shareholders.