Procter & Gamble Company (PG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The analysis of Procter & Gamble Company's solvency ratios over the period reveals a consistent financial position characterized by minimal or nonexistent leverage based on the provided data.
Debt-to-Assets, Debt-to-Capital, and Debt-to-Equity Ratios:
All three ratios are uniformly reported as zero across the entire timeline from June 2020 through March 2025. This indicates that the company has had no short-term or long-term debt obligations relative to its total assets, capitalization, or equity during this period. Such a pattern suggests that Procter & Gamble has not utilized debt financing and relies predominantly on equity or retained earnings for its capital structure.
Financial Leverage Ratio:
The financial leverage ratio fluctuates within a narrow range, from approximately 2.35 to 2.72, with a general trend of slight decline over the period. The ratio's values imply that the company’s total assets are roughly 2.4 to 2.7 times its equity, which aligns with a conservative capital structure. A declining trend, from around 2.66 to 2.35, indicates a gradual reduction in leverage, enhancing the company's solvency profile and indicating a lower reliance on borrowed funds over time.
Summary:
The data consistently indicate that Procter & Gamble maintains a robust solvency status with negligible to no debt levels. The zero debt ratios confirm a debt-free capital structure, while the stable and slightly declining financial leverage ratio reinforces the company's conservative approach to leverage. This position minimizes financial risk, suggesting a stable and resilient solvency profile over the considered period.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 22.33 | 21.88 | 20.26 | 21.26 | 21.22 | 21.14 | 23.34 | 25.28 | 29.16 | 34.89 | 40.64 | 41.99 | 41.61 | 41.45 | 37.53 | 36.09 | 33.31 | 32.96 | 35.05 | 35.05 |
The interest coverage ratios for Procter & Gamble Company over the specified periods demonstrate a pattern of high initial coverage levels, which gradually decline over time. As of June 30 and September 30, 2020, the ratio stood at 35.05, indicating that the company's earnings before interest and taxes (EBIT) were more than thirty-five times the interest expense, reflecting a very strong ability to meet interest obligations.
Throughout 2020 and 2021, the ratios remained robust, fluctuating within a range that suggests healthy interest coverage. For example, at December 31, 2020, the ratio decreased slightly to 32.96, then increased again in subsequent quarters, peaking at 41.45 on December 31, 2021, and maintaining similarly high levels into March 2022.
From mid-2022 onwards, a noticeable downward trend emerges. The ratio decreased from approximately 41.99 in June 2022 to 34.89 by December 2022, continuing its decline to around 29.16 in March 2023. This downward movement persisted into 2023, with ratios falling further to 25.28 in June, 23.34 in September, and 21.14 at December 2023. These figures suggest that the company's ability to cover interest costs has diminished considerably compared to previous years, although the ratios still remain above 20, indicating that earnings continue to comfortably cover interest expenses.
The ratios observed into 2024 show slight stabilization and modest recovery, with values of 21.88 in December 2024 and 22.33 in March 2025. Overall, the trend reflects a reduction in interest coverage capacity over time but still indicates sufficient earnings relative to interest obligations. The decreasing trend may warrant monitoring, as continued decline could impact financial flexibility and risk profile if it persists.