Procter & Gamble Company (PG)
Solvency ratios
Jun 30, 2025 | 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 | |
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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 | 2.40 | 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 |
The analysis of Procter & Gamble's solvency ratios over the examined period reveals a consistent pattern characterized by minimal to nonexistent leverage, as evidenced by the data provided. Notably, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all reported as zero across all reported dates from September 2020 through June 2025. This indicates that the company has not reported any interest-bearing debt or leverage in its financial statements during this period, suggesting an unleveraged capital structure or possibly the exclusion of debt from the reported ratios.
The financial leverage ratio, which measures the proportion of assets financed through debt relative to equity, fluctuates within a relatively narrow band between approximately 2.35 and 2.72 during the period observed. Despite these variations, the ratios do not imply the presence of actual debt, especially considering the other ratios consistently show zero debt levels. This discrepancy could indicate that the leverage ratio is influenced by other accounting factors or that it reflects a different aspect of the company's capital structure that is independent of reported debt.
Overall, the data reflects an extremely conservative or debt-free financing approach, consistent with a high degree of solvency. The absence of debt obligations implies a limited financial risk stemming from leverage and correspondingly high capacity to meet obligations, provided other liabilities are manageable. This debt-free profile suggests strong solvency and financial stability, but also raises considerations about the company's capital structure decisions and operational financing strategies, which may favor internal funding sources over debt accumulation.
Coverage ratios
Jun 30, 2025 | 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 | |
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Interest coverage | 23.23 | 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 |
The interest coverage ratio for Procter & Gamble (P&G) demonstrates a general trend of high and relatively stable ability to meet interest obligations over the specified period. As of September 30, 2020, the ratio stood at 35.05, indicating that the company's earnings before interest and taxes (EBIT) significantly exceeded its interest expenses, suggesting robust coverage and a strong financial position during that time.
Throughout the subsequent periods, the ratio experienced fluctuations but remained notably high, consistently exceeding 20.0. Notably, the ratio peaked at 41.99 on June 30, 2022, reflecting an even stronger capacity to cover interest charges. This sustained high level signifies a conservative leverage profile and a stable earnings base capable of comfortably servicing debt.
Starting around late 2022, there was a gradual decline in the interest coverage ratio. By December 31, 2022, it had decreased to 34.89, and further declines continued through the following periods. For instance, by March 31, 2023, the ratio declined to 29.16, and it further decreased to 25.28 by June 30, 2023. The downward trend persisted, with ratios reaching 23.34 on September 30, 2023, and subsequently declining to 21.14 on December 31, 2023. Yet, the ratios remained above 20.0, maintaining a comfortable margin for interest coverage.
Looking into the more recent periods, the ratio experienced slight fluctuations but did not return to prior peak levels. For example, in the first half of 2024, ratios hovered around the low 21s (21.22 in March 2024 and 21.26 in June 2024), with a modest increase to 20.26 on September 30, 2024. Projections for the subsequent periods suggest a slight recovery, with ratios estimated to be around 22.33 in March 2025 and 23.23 in June 2025.
Overall, despite some decline from historic highs, the company's interest coverage ratio remains well above the typical safety thresholds, indicating that Procter & Gamble has maintained a strong financial buffer to cover interest expenses. The trend reflects a period of stability interspersed with gradual easing of its leverage cushion, but it continues to demonstrate prudent financial management and stable earnings generation relative to debt obligations.