Procter & Gamble Company (PG)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 122,984,000 | 122,639,000 | 126,482,000 | 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 |
| 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 |
| Financial leverage ratio | 2.35 | 2.40 | 2.44 | 2.43 | 2.39 | 2.49 | 2.57 | 2.58 | 2.66 | 2.65 | 2.64 | 2.52 | 2.64 | 2.72 | 2.60 | 2.57 | 2.51 | 2.49 | 2.49 | 2.59 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $122,984,000K ÷ $52,272,000K
= 2.35
The financial leverage ratio of Procter & Gamble (P&G) demonstrates a relatively stable use of debt relative to equity over the period under review, with some minor fluctuations observable from June 30, 2020, through March 31, 2025.
Initially, at the end of the fiscal year 2020, the leverage ratio stood at 2.59, indicating that for each dollar of equity, P&G employed approximately 2.59 dollars of debt. Throughout 2020 and into early 2021, this ratio remained consistent at 2.49, suggesting a relatively stable capital structure during this period.
From March 2021 onward, the leverage ratio experienced a gradual upward trend, reaching a peak of 2.72 at the end of calendar year 2021. This increase indicates that P&G employed slightly higher leverage, potentially financing growth initiatives or restructuring efforts with increased debt. Throughout 2022, the ratio fluctuated modestly around the 2.52 to 2.65 range, reflecting a stabilization in leverage levels, with a gentle upward drift.
Entering 2023 and beyond, the ratio maintained a relatively steady trajectory, averaging around 2.57 to 2.66. Notably, at the close of March 2024, the ratio decreased to 2.39, and by September 2024, it further declined to 2.44. This downward movement suggests a slight deleveraging trend, possibly due to debt repayments or an increase in equity.
By December 2024 and into the first quarter of 2025, the leverage ratio continued to decline gradually, reaching 2.40 and subsequently 2.35, respectively. These reductions point towards a modest shift towards less financial leverage, potentially aligning with strategic efforts to reduce debt levels or strengthen the company's equity base.
Overall, the financial leverage ratio of P&G has exhibited stability with minor periods of increases and decreases, reflecting a consistent approach to leveraging assets in line with corporate financing strategies. The slight downward trend in recent periods signals a cautious rebalancing towards lower leverage, which may be aimed at maintaining financial stability and optimizing the company's capital structure.
See also:
Procter & Gamble Company Financial Leverage (Quarterly Data)