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PG (Procter & Gamble Co) Interest Coverage : 24.36 (As of Sep. 2024)


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What is Procter & Gamble Co Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Procter & Gamble Co's Operating Income for the three months ended in Sep. 2024 was $5,797 Mil. Procter & Gamble Co's Interest Expense for the three months ended in Sep. 2024 was $-238 Mil. Procter & Gamble Co's interest coverage for the quarter that ended in Sep. 2024 was 24.36. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Procter & Gamble Co's Interest Coverage or its related term are showing as below:

PG' s Interest Coverage Range Over the Past 10 Years
Min: 20.89   Med: 26.79   Max: 40.58
Current: 21.21


PG's Interest Coverage is ranked better than
66.92% of 1433 companies
in the Consumer Packaged Goods industry
Industry Median: 8.64 vs PG: 21.21

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Procter & Gamble Co Interest Coverage Historical Data

The historical data trend for Procter & Gamble Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Procter & Gamble Co Interest Coverage Chart

Procter & Gamble Co Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.78 35.83 40.58 23.99 21.50

Procter & Gamble Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.63 23.29 19.14 17.66 24.36

Competitive Comparison of Procter & Gamble Co's Interest Coverage

For the Household & Personal Products subindustry, Procter & Gamble Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Procter & Gamble Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Procter & Gamble Co's Interest Coverage falls into.



Procter & Gamble Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Procter & Gamble Co's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Procter & Gamble Co's Interest Expense was $-925 Mil. Its Operating Income was $19,886 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,935 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2024 )/Interest Expense (A: Jun. 2024 )
=-1*19886/-925
=21.50

Procter & Gamble Co's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Procter & Gamble Co's Interest Expense was $-238 Mil. Its Operating Income was $5,797 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,744 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*5797/-238
=24.36

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Procter & Gamble Co  (NYSE:PG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Procter & Gamble Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Procter & Gamble Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Procter & Gamble Co Business Description

Address
One Procter and Gamble Plaza, Cincinnati, OH, USA, 45202
Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, generating more than $80 billion in annual sales. It operates with a lineup of leading brands, including more than 20 that generate north of $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. Sales outside its home turf represent more than half of the firm's consolidated total.
Executives
Jon R Moeller officer: Chief Financial Officer ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Andre Schulten officer: Chief Financial Officer ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Shailesh Jejurikar officer: President - Global Fabric Care ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
R. Alexandra Keith officer: President Global Hair & Beauty ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Gary A Coombe officer: President-Europe SMO ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Ma. Fatima Francisco officer: President - Global Baby ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Sundar G. Raman officer: CEO-Fabric & Home Care ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Balaji Purushothaman officer: Chief Human Resources Officer 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Marc S. Pritchard officer: Global Marketing Officer ONE PROCTER AND GAMBLE PLAZA, CINCINNATI OH 45202
Aguilar Moses Victor Javier officer: Chf Rsch, Dev & Innov Officer ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Jennifer L. Davis officer: CEO - Health Care 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Susan Street Whaley officer: Chief Legal Officer & Secy 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Matthew W. Janzaruk officer: SVP - Chief Accounting Officer 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
M. Brett Biggs director 702 SW 8TH STREET, BENTONVILLE AR 72716
Sheila Bonini director 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202