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PG (Procter & Gamble Co) ROE % : 31.01% (As of Sep. 2024)


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What is Procter & Gamble Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Procter & Gamble Co's annualized net income for the quarter that ended in Sep. 2024 was $15,836 Mil. Procter & Gamble Co's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $51,063 Mil. Therefore, Procter & Gamble Co's annualized ROE % for the quarter that ended in Sep. 2024 was 31.01%.

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

PG' s ROE % Range Over the Past 10 Years
Min: 7.83   Med: 27.52   Max: 31.71
Current: 28.82

During the past 13 years, Procter & Gamble Co's highest ROE % was 31.71%. The lowest was 7.83%. And the median was 27.52%.

PG's ROE % is ranked better than
91.29% of 1848 companies
in the Consumer Packaged Goods industry
Industry Median: 7.01 vs PG: 28.82

Procter & Gamble Co ROE % Historical Data

The historical data trend for Procter & Gamble Co's ROE % 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.

* Premium members only.

Procter & Gamble Co ROE % Chart

Procter & Gamble Co Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.80 30.80 31.71 31.39 30.66

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
ROE % 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 38.29 28.83 30.46 25.01 31.01

Competitive Comparison of Procter & Gamble Co's ROE %

For the Household & Personal Products subindustry, Procter & Gamble Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Consumer Packaged Goods Industry

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

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



Procter & Gamble Co ROE % Calculation

Procter & Gamble Co's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=14879/( (46777+50286)/ 2 )
=14879/48531.5
=30.66 %

Procter & Gamble Co's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=15836/( (50286+51840)/ 2 )
=15836/51063
=31.01 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Procter & Gamble Co  (NYSE:PG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=15836/51063
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(15836 / 86948)*(86948 / 124426)*(124426 / 51063)
=Net Margin %*Asset Turnover*Equity Multiplier
=18.21 %*0.6988*2.4367
=ROA %*Equity Multiplier
=12.73 %*2.4367
=31.01 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=15836/51063
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (15836 / 20560) * (20560 / 23188) * (23188 / 86948) * (86948 / 124426) * (124426 / 51063)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7702 * 0.8867 * 26.67 % * 0.6988 * 2.4367
=31.01 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Procter & Gamble Co ROE % Related Terms

Thank you for viewing the detailed overview of Procter & Gamble Co's ROE % 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