PG Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Procter & Gamble Co - Alpha Spread

Procter & Gamble Co
NYSE:PG

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Procter & Gamble Co
NYSE:PG
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Price: 168.16 USD 0.62% Market Closed
Market Cap: 396.4B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Procter & Gamble Co

Revenue
84B USD
Cost of Revenue
-40.6B USD
Gross Profit
43.4B USD
Operating Expenses
-23.2B USD
Operating Income
20.3B USD
Other Expenses
-5.7B USD
Net Income
14.6B USD

Margins Comparison
Procter & Gamble Co Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Procter & Gamble Co
NYSE:PG
396.4B USD
52%
24%
17%
US
Colgate-Palmolive Co
NYSE:CL
82.2B USD
60%
22%
14%
US
Kimberly-Clark Corp
NYSE:KMB
47.9B USD
36%
16%
11%
UK
Reckitt Benckiser Group PLC
LSE:RKT
32.5B GBP
61%
23%
11%
DE
Henkel AG & Co KGaA
XETRA:HEN3
34.5B EUR
46%
12%
6%
US
Church & Dwight Co Inc
NYSE:CHD
24.5B USD
45%
19%
13%
SE
Essity AB (publ)
STO:ESSITY B
217.9B SEK
34%
14%
15%
US
Clorox Co
NYSE:CLX
19.8B USD
43%
13%
4%
JP
Unicharm Corp
TSE:8113
2.9T JPY
39%
15%
9%
US
Reynolds Consumer Products Inc
NASDAQ:REYN
6.3B USD
27%
15%
10%
ID
Unilever Indonesia Tbk PT
IDX:UNVR
88.5T IDR
50%
16%
12%
Country US
Market Cap 396.4B USD
Gross Margin
52%
Operating Margin
24%
Net Margin
17%
Country US
Market Cap 82.2B USD
Gross Margin
60%
Operating Margin
22%
Net Margin
14%
Country US
Market Cap 47.9B USD
Gross Margin
36%
Operating Margin
16%
Net Margin
11%
Country UK
Market Cap 32.5B GBP
Gross Margin
61%
Operating Margin
23%
Net Margin
11%
Country DE
Market Cap 34.5B EUR
Gross Margin
46%
Operating Margin
12%
Net Margin
6%
Country US
Market Cap 24.5B USD
Gross Margin
45%
Operating Margin
19%
Net Margin
13%
Country SE
Market Cap 217.9B SEK
Gross Margin
34%
Operating Margin
14%
Net Margin
15%
Country US
Market Cap 19.8B USD
Gross Margin
43%
Operating Margin
13%
Net Margin
4%
Country JP
Market Cap 2.9T JPY
Gross Margin
39%
Operating Margin
15%
Net Margin
9%
Country US
Market Cap 6.3B USD
Gross Margin
27%
Operating Margin
15%
Net Margin
10%
Country ID
Market Cap 88.5T IDR
Gross Margin
50%
Operating Margin
16%
Net Margin
12%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Procter & Gamble Co Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Procter & Gamble Co
NYSE:PG
396.4B USD
30%
12%
23%
17%
US
Colgate-Palmolive Co
NYSE:CL
82.2B USD
9 627%
17%
38%
24%
US
Kimberly-Clark Corp
NYSE:KMB
47.9B USD
280%
13%
30%
19%
UK
Reckitt Benckiser Group PLC
LSE:RKT
32.5B GBP
18%
6%
17%
11%
DE
Henkel AG & Co KGaA
XETRA:HEN3
34.5B EUR
7%
4%
10%
7%
US
Church & Dwight Co Inc
NYSE:CHD
24.5B USD
20%
9%
15%
12%
SE
Essity AB (publ)
STO:ESSITY B
217.9B SEK
25%
9%
13%
8%
US
Clorox Co
NYSE:CLX
19.8B USD
102%
5%
22%
17%
JP
Unicharm Corp
TSE:8113
2.9T JPY
13%
8%
16%
17%
US
Reynolds Consumer Products Inc
NASDAQ:REYN
6.3B USD
19%
7%
13%
10%
ID
Unilever Indonesia Tbk PT
IDX:UNVR
88.5T IDR
133%
23%
111%
37%
Country US
Market Cap 396.4B USD
ROE
30%
ROA
12%
ROCE
23%
ROIC
17%
Country US
Market Cap 82.2B USD
ROE
9 627%
ROA
17%
ROCE
38%
ROIC
24%
Country US
Market Cap 47.9B USD
ROE
280%
ROA
13%
ROCE
30%
ROIC
19%
Country UK
Market Cap 32.5B GBP
ROE
18%
ROA
6%
ROCE
17%
ROIC
11%
Country DE
Market Cap 34.5B EUR
ROE
7%
ROA
4%
ROCE
10%
ROIC
7%
Country US
Market Cap 24.5B USD
ROE
20%
ROA
9%
ROCE
15%
ROIC
12%
Country SE
Market Cap 217.9B SEK
ROE
25%
ROA
9%
ROCE
13%
ROIC
8%
Country US
Market Cap 19.8B USD
ROE
102%
ROA
5%
ROCE
22%
ROIC
17%
Country JP
Market Cap 2.9T JPY
ROE
13%
ROA
8%
ROCE
16%
ROIC
17%
Country US
Market Cap 6.3B USD
ROE
19%
ROA
7%
ROCE
13%
ROIC
10%
Country ID
Market Cap 88.5T IDR
ROE
133%
ROA
23%
ROCE
111%
ROIC
37%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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