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Procter & Gamble Co ROE %

: 25.06% (As of Mar. 2020)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus the preferred dividends paid) divided by its average Total Stockholders Equity over a certain period of time. Procter & Gamble Co's annualized net income attributable to common stockholders for the quarter that ended in Mar. 2020 was $11,412 Mil. Procter & Gamble Co's average Total Stockholders Equity over the quarter that ended in Mar. 2020 was $45,539 Mil. Therefore, Procter & Gamble Co's annualized ROE % for the quarter that ended in Mar. 2020 was 25.06%.

NYSE:PG' s ROE % Range Over the Past 10 Years
Min: 7.31   Med: 16.98   Max: 26.8
Current: 9.85

7.31
26.8

During the past 13 years, Procter & Gamble Co's highest ROE % was 26.80%. The lowest was 7.31%. And the median was 16.98%.

NYSE:PG's ROE % is ranked higher than
66% of the 1578 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 5.58 vs. NYSE:PG: 9.85 )

Procter & Gamble Co ROE % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Procter & Gamble Co Annual Data
Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.30 17.12 26.80 17.65 7.31

Procter & Gamble Co Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
ROE % 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 Premium Member Only Premium Member Only Premium Member Only 19.67 -41.53 30.10 31.73 25.06

Competitive Comparison
* 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.


Procter & Gamble Co ROE % Distribution

* 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. 2019 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Jun. 2019 )/( (Total Stockholders Equity (A: Jun. 2018 )+Total Stockholders Equity (A: Jun. 2019 ))/ count )
=3634/( (52293+47194)/ 2 )
=3634/49743.5
=7.31 %

Procter & Gamble Co's annualized ROE % for the quarter that ended in Mar. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Mar. 2020 )/( (Total Stockholders Equity (Q: Dec. 2019 )+Total Stockholders Equity (Q: Mar. 2020 ))/ count )
=11412/( (45538+45540)/ 2 )
=11412/45539
=25.06 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual ROE %, the net income attributable to common stockholders 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 attributable to common stockholders data used here is four times the quarterly (Mar. 2020) net income attributable to common stockholders 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: Mar. 2020 )
=Net Income attributable to Common Stockholders/Total Stockholders Equity
=11412/45539
=(Net Income attributable to Common Stockholders / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(11412 / 68856)*(68856 / 115141.5)*(115141.5 / 45539)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.57 %*0.598*2.5284
=ROA %*Equity Multiplier
=9.91 %*2.5284
=25.06 %

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: Mar. 2020 )
=Net Income to Common Stockholder/Total Stockholders Equity
=11412/45539
=(NI to Com. Stockholder/Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (11412 / 13992) * (13992 / 13812) * (13812 / 68856) * (68856 / 115141.5) * (115141.5 / 45539)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8156 * 1.013 * 20.06 % * 0.598 * 2.5284
=25.06 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Mar. 2020) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Mar. 2020) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

Net income attributable to common stockholders 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.


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