Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Procter & Gamble Co., solvency ratios

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Debt Ratios
Debt to equity	0.65	0.74	0.68	0.69	0.75	0.64
Debt to equity (including operating lease liability)	0.66	0.76	0.69	0.71	0.77	0.64
Debt to capital	0.39	0.43	0.40	0.41	0.43	0.39
Debt to capital (including operating lease liability)	0.40	0.43	0.41	0.41	0.43	0.39
Debt to assets	0.27	0.29	0.27	0.27	0.29	0.26
Debt to assets (including operating lease liability)	0.27	0.29	0.28	0.28	0.30	0.26
Financial leverage	2.43	2.58	2.52	2.57	2.59	2.44
Coverage Ratios
Interest coverage	21.28	25.28	41.99	36.09	35.05	12.92
Fixed charge coverage	12.31	13.66	16.98	15.83	14.54	5.85

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

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Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Procter & Gamble Co. debt to assets ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Procter & Gamble Co. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Procter & Gamble Co. financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Procter & Gamble Co. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Procter & Gamble Co. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Procter & Gamble Co., debt to equity calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Debt due within one year	7,191)	10,229)	8,645)	8,889)	11,183)	9,697)
Long-term debt, excluding due within one year	25,269)	24,378)	22,848)	23,099)	23,537)	20,395)
Total debt	32,460)	34,607)	31,493)	31,988)	34,720)	30,092)

Shareholders’ equity attributable to Procter & Gamble	50,287)	46,777)	46,589)	46,378)	46,521)	47,194)
Solvency Ratio
Debt to equity¹	0.65	0.74	0.68	0.69	0.75	0.64
Benchmarks
Debt to Equity, Industry
Consumer Staples	—	1.39	1.26	1.27	1.44	1.34

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
= 32,460 ÷ 50,287 = 0.65

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Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Procter & Gamble Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Debt due within one year	7,191)	10,229)	8,645)	8,889)	11,183)	9,697)
Long-term debt, excluding due within one year	25,269)	24,378)	22,848)	23,099)	23,537)	20,395)
Total debt	32,460)	34,607)	31,493)	31,988)	34,720)	30,092)
Current operating lease liabilities	243)	222)	205)	219)	239)	—)
Noncurrent operating lease liabilities	666)	595)	595)	631)	652)	—)
Total debt (including operating lease liability)	33,369)	35,424)	32,293)	32,838)	35,611)	30,092)

Shareholders’ equity attributable to Procter & Gamble	50,287)	46,777)	46,589)	46,378)	46,521)	47,194)
Solvency Ratio
Debt to equity (including operating lease liability)¹	0.66	0.76	0.69	0.71	0.77	0.64
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Consumer Staples	—	1.57	1.43	1.44	1.64	1.38

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity attributable to Procter & Gamble
= 33,369 ÷ 50,287 = 0.66

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Solvency ratio	Description	The company
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Procter & Gamble Co. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Procter & Gamble Co., debt to capital calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Debt due within one year	7,191)	10,229)	8,645)	8,889)	11,183)	9,697)
Long-term debt, excluding due within one year	25,269)	24,378)	22,848)	23,099)	23,537)	20,395)
Total debt	32,460)	34,607)	31,493)	31,988)	34,720)	30,092)
Shareholders’ equity attributable to Procter & Gamble	50,287)	46,777)	46,589)	46,378)	46,521)	47,194)
Total capital	82,747)	81,384)	78,082)	78,366)	81,241)	77,286)
Solvency Ratio
Debt to capital¹	0.39	0.43	0.40	0.41	0.43	0.39
Benchmarks
Debt to Capital, Industry
Consumer Staples	—	0.58	0.56	0.56	0.59	0.57

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 32,460 ÷ 82,747 = 0.39

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Solvency ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Procter & Gamble Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Debt due within one year	7,191)	10,229)	8,645)	8,889)	11,183)	9,697)
Long-term debt, excluding due within one year	25,269)	24,378)	22,848)	23,099)	23,537)	20,395)
Total debt	32,460)	34,607)	31,493)	31,988)	34,720)	30,092)
Current operating lease liabilities	243)	222)	205)	219)	239)	—)
Noncurrent operating lease liabilities	666)	595)	595)	631)	652)	—)
Total debt (including operating lease liability)	33,369)	35,424)	32,293)	32,838)	35,611)	30,092)
Shareholders’ equity attributable to Procter & Gamble	50,287)	46,777)	46,589)	46,378)	46,521)	47,194)
Total capital (including operating lease liability)	83,656)	82,201)	78,882)	79,216)	82,132)	77,286)
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.40	0.43	0.41	0.41	0.43	0.39
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Consumer Staples	—	0.61	0.59	0.59	0.62	0.58

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 33,369 ÷ 83,656 = 0.40

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Solvency ratio	Description	The company
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Procter & Gamble Co. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Procter & Gamble Co., debt to assets calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Debt due within one year	7,191)	10,229)	8,645)	8,889)	11,183)	9,697)
Long-term debt, excluding due within one year	25,269)	24,378)	22,848)	23,099)	23,537)	20,395)
Total debt	32,460)	34,607)	31,493)	31,988)	34,720)	30,092)

Total assets	122,370)	120,829)	117,208)	119,307)	120,700)	115,095)
Solvency Ratio
Debt to assets¹	0.27	0.29	0.27	0.27	0.29	0.26
Benchmarks
Debt to Assets, Industry
Consumer Staples	—	0.33	0.31	0.32	0.35	0.35

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 32,460 ÷ 122,370 = 0.27

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Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Procter & Gamble Co. debt to assets ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Procter & Gamble Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Debt due within one year	7,191)	10,229)	8,645)	8,889)	11,183)	9,697)
Long-term debt, excluding due within one year	25,269)	24,378)	22,848)	23,099)	23,537)	20,395)
Total debt	32,460)	34,607)	31,493)	31,988)	34,720)	30,092)
Current operating lease liabilities	243)	222)	205)	219)	239)	—)
Noncurrent operating lease liabilities	666)	595)	595)	631)	652)	—)
Total debt (including operating lease liability)	33,369)	35,424)	32,293)	32,838)	35,611)	30,092)

Total assets	122,370)	120,829)	117,208)	119,307)	120,700)	115,095)
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.27	0.29	0.28	0.28	0.30	0.26
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Consumer Staples	—	0.38	0.36	0.36	0.40	0.36

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 33,369 ÷ 122,370 = 0.27

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Solvency ratio	Description	The company
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Procter & Gamble Co. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Procter & Gamble Co., financial leverage calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Total assets	122,370)	120,829)	117,208)	119,307)	120,700)	115,095)
Shareholders’ equity attributable to Procter & Gamble	50,287)	46,777)	46,589)	46,378)	46,521)	47,194)
Solvency Ratio
Financial leverage¹	2.43	2.58	2.52	2.57	2.59	2.44
Benchmarks
Financial Leverage, Industry
Consumer Staples	—	4.19	3.99	4.01	4.15	3.82

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= 122,370 ÷ 50,287 = 2.43

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Solvency ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Procter & Gamble Co. financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Procter & Gamble Co., interest coverage calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)	14,879)	14,653)	14,742)	14,306)	13,027)	3,897)
Add: Net income attributable to noncontrolling interest	95)	85)	51)	46)	76)	69)
Add: Income tax expense	3,787)	3,615)	3,202)	3,263)	2,731)	2,103)
Add: Interest expense	925)	756)	439)	502)	465)	509)
Earnings before interest and tax (EBIT)	19,686)	19,109)	18,434)	18,117)	16,299)	6,578)
Solvency Ratio
Interest coverage¹	21.28	25.28	41.99	36.09	35.05	12.92
Benchmarks
Interest Coverage, Industry
Consumer Staples	—	11.27	14.88	10.59	11.00	8.58

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 19,686 ÷ 925 = 21.28

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Procter & Gamble Co. interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Procter & Gamble Co., fixed charge coverage calculation, comparison to benchmarks

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)	14,879)	14,653)	14,742)	14,306)	13,027)	3,897)
Add: Net income attributable to noncontrolling interest	95)	85)	51)	46)	76)	69)
Add: Income tax expense	3,787)	3,615)	3,202)	3,263)	2,731)	2,103)
Add: Interest expense	925)	756)	439)	502)	465)	509)
Earnings before interest and tax (EBIT)	19,686)	19,109)	18,434)	18,117)	16,299)	6,578)
Add: Operating lease cost	343)	308)	309)	320)	347)	341)
Earnings before fixed charges and tax	20,029)	19,417)	18,743)	18,437)	16,646)	6,919)

Interest expense	925)	756)	439)	502)	465)	509)
Operating lease cost	343)	308)	309)	320)	347)	341)
Preferred dividends	284)	282)	281)	271)	263)	263)
Preferred dividends, tax adjustment¹	75)	75)	75)	72)	70)	70)
Preferred dividends, after tax adjustment	359)	357)	356)	343)	333)	333)
Fixed charges	1,627)	1,421)	1,104)	1,165)	1,145)	1,183)
Solvency Ratio
Fixed charge coverage²	12.31	13.66	16.98	15.83	14.54	5.85
Benchmarks
Fixed Charge Coverage, Industry
Consumer Staples	—	6.97	8.29	6.71	6.68	5.11

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

¹ 2024 Calculation
Preferred dividends, tax adjustment = (Preferred dividends × U.S. federal statutory income tax rate) ÷ (1 − U.S. federal statutory income tax rate)
= (284 × 21.00%) ÷ (1 − 21.00%) = 75

² 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 20,029 ÷ 1,627 = 12.31

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Solvency ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Procter & Gamble Co. fixed charge coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Procter & Gamble Co. (NYSE:PG)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage