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PG (Procter & Gamble Co) Altman Z-Score : 5.60 (As of Oct. 31, 2024)


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What is Procter & Gamble Co Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 5.62 is strong.

Procter & Gamble Co has a Altman Z-Score of 5.60, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Procter & Gamble Co's Altman Z-Score or its related term are showing as below:

PG' s Altman Z-Score Range Over the Past 10 Years
Min: 3.57   Med: 4.49   Max: 5.92
Current: 5.62

During the past 13 years, Procter & Gamble Co's highest Altman Z-Score was 5.92. The lowest was 3.57. And the median was 4.49.


Procter & Gamble Co Altman Z-Score Historical Data

The historical data trend for Procter & Gamble Co's Altman Z-Score 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 Altman Z-Score Chart

Procter & Gamble Co Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.56 4.99 5.36 5.36 5.79

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
Altman Z-Score 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 5.24 5.40 5.92 5.79 5.75

Competitive Comparison of Procter & Gamble Co's Altman Z-Score

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

For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Procter & Gamble Co's Altman Z-Score falls into.



Procter & Gamble Co Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Procter & Gamble Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0709+1.4*0.9911+3.3*0.1505+0.6*5.2327+1.0*0.6634
=5.60

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $126,482 Mil.
Total Current Assets was $27,449 Mil.
Total Current Liabilities was $36,420 Mil.
Retained Earnings was $125,361 Mil.
Pre-Tax Income was 5140 + 3870 + 4592 + 4496 = $18,098 Mil.
Interest Expense was -238 + -220 + -233 + -248 = $-939 Mil.
Revenue was 21737 + 20532 + 20195 + 21441 = $83,905 Mil.
Market Cap (Today) was $389,006 Mil.
Total Liabilities was $74,342 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(27449 - 36420)/126482
=-0.0709

X2=Retained Earnings/Total Assets
=125361/126482
=0.9911

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(18098 - -939)/126482
=0.1505

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=389005.792/74342
=5.2327

X5=Revenue/Total Assets
=83905/126482
=0.6634

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Procter & Gamble Co has a Altman Z-Score of 5.60 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Procter & Gamble Co  (NYSE:PG) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Procter & Gamble Co Altman Z-Score Related Terms

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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