Procter & Gamble Company (PG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.20 | 0.19 | 0.20 | 0.20 | 0.19 | 0.17 | 0.18 | 0.19 | 0.20 | 0.18 | 0.17 | 0.19 | 0.18 | 0.19 | 0.20 | 0.20 | 0.20 | 0.17 | 0.18 |
| Debt-to-capital ratio | 0.33 | 0.33 | 0.32 | 0.33 | 0.34 | 0.33 | 0.32 | 0.32 | 0.33 | 0.34 | 0.33 | 0.31 | 0.33 | 0.31 | 0.32 | 0.33 | 0.33 | 0.34 | 0.29 | 0.30 |
| Debt-to-equity ratio | 0.50 | 0.48 | 0.47 | 0.50 | 0.52 | 0.50 | 0.46 | 0.48 | 0.49 | 0.52 | 0.50 | 0.44 | 0.50 | 0.45 | 0.46 | 0.49 | 0.50 | 0.51 | 0.41 | 0.43 |
| 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 |
Procter & Gamble Company's solvency ratios provide insights into its ability to meet its long-term financial obligations.
The debt-to-assets ratio has remained relatively stable over the past few quarters, hovering around the 0.20 mark, indicating that the company relies on debt to finance approximately 20% of its assets. This suggests a conservative approach to leverage, as the company has a relatively low level of debt compared to its total assets.
The debt-to-capital ratio shows a similar trend, also remaining fairly consistent around the 0.33 level. This ratio indicates that about one-third of the company's capital structure is made up of debt, with the rest coming from equity. Again, this demonstrates a balanced mix of debt and equity financing.
The debt-to-equity ratio has fluctuated slightly but generally remains around the 0.50 mark. This ratio indicates that for every dollar of equity, the company has approximately $0.50 in debt. While this level of leverage is moderate, it is important for investors and creditors to monitor any significant changes in this ratio over time.
The financial leverage ratio, which measures the company's overall debt levels compared to its equity, has shown some variability, ranging from 2.38 to 2.70 over the past quarters. This indicates that the company has, on average, total assets more than twice as much as its total equity. It implies that the company relies more on debt to finance its operations, which may increase financial risk but can also potentially lead to higher returns.
Overall, Procter & Gamble's solvency ratios suggest a prudent approach to managing its long-term financial obligations, with a balanced mix of debt and equity in its capital structure. Investors should continue to monitor these ratios for any significant changes that may impact the company's financial health and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 20.94 | 21.12 | 21.03 | 23.22 | 25.16 | 29.03 | 34.75 | 40.51 | 41.87 | 41.50 | 41.41 | 37.47 | 36.00 | 33.25 | 32.80 | 34.88 | 34.89 | 18.22 | 16.56 | 14.10 |
The interest coverage ratio of Procter & Gamble Company has shown a generally strong and improving trend over the past few quarters. The ratio has consistently been above 20 across all reporting periods, indicating that the company has had more than sufficient earnings to cover its interest obligations.
The interest coverage ratio has shown an increasing pattern, reaching a peak of 41.87 in the most recent reporting period. This signifies that the company's operating income is robust relative to its interest expenses, reflecting a healthy financial position.
The consistent high levels of interest coverage suggest that Procter & Gamble has a strong ability to meet its interest payments and demonstrates financial stability. Investors and creditors may view this positively as it indicates a low risk of default on debt obligations.