Procter & Gamble Company (PG)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 18,545,000 | 19,024,000 | 18,383,000 | 18,071,000 | 16,223,000 |
| Interest expense | US$ in thousands | 925,000 | 756,000 | 439,000 | 502,000 | 465,000 |
| Interest coverage | 20.05 | 25.16 | 41.87 | 36.00 | 34.89 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $18,545,000K ÷ $925,000K
= 20.05
The interest coverage ratio for Procter & Gamble Company has shown a declining trend over the past five years, indicating a decreasing ability to cover its interest expenses from operating profits. Despite this decline, the company has consistently maintained a healthy interest coverage ratio well above 1, indicating that it generates significantly more operating income than needed to cover interest expenses. This steady performance reflects the company's financial stability and ability to meet its debt obligations comfortably. However, the decreasing trend suggests a need for monitoring to ensure that the company's profitability remains robust enough to cover its interest expenses in the future.
Peer comparison
Jun 30, 2024