Procter & Gamble Company (PG)

Interest coverage

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before interest and tax (EBIT) US$ in thousands 19,686,000 19,057,000 18,434,000 18,117,000
Interest expense US$ in thousands 907,000 925,000 756,000 439,000 502,000
Interest coverage 0.00 21.28 25.21 41.99 36.09

June 30, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $907,000K
= 0.00

The interest coverage ratio for Procter & Gamble Company over the specified periods indicates variations in its ability to meet interest obligations from its earnings before interest and taxes (EBIT). As of June 30, 2021, the ratio was 36.09, reflecting a strong capacity to cover interest expenses, suggesting a healthy financial position with substantial earnings relative to interest obligations. This ratio increased to 41.99 by June 30, 2022, further reinforcing the company's robust interest coverage and financial stability during that period. However, a notable decline is observed in June 30, 2023, where the ratio decreased to 25.21, indicating a reduction in EBIT relative to interest expenses, though still maintaining a comfortable margin for coverage. The trend continues with a further decrease to 21.28 by June 30, 2024, signifying a continued downward trajectory in interest coverage, which could imply a tightening of earnings or increased interest obligations. By June 30, 2025, the interest coverage ratio drops to zero, suggesting that the interest expense may have become non-existent, possibly due to the cessation of debt or a accounting anomaly, thereby indicating that the company no longer faces interest obligations or that such expenses are not recognized in the reported periods. Overall, the data demonstrates that Procter & Gamble maintained a strong interest coverage ratio throughout most of the examined period, with a declining trend evident in recent years, culminating in a ratio of zero in 2025, which warrants further analysis of the company's debt and interest expense management strategies.


See also:

Procter & Gamble Company Interest Coverage