Procter & Gamble Co (BUE:PG) Interest Coverage

: 23.29 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Procter & Gamble Co's Operating Income for the three months ended in Dec. 2023 was ARS2,084,775 Mil. Procter & Gamble Co's Interest Expense for the three months ended in Dec. 2023 was ARS-89,528 Mil. Procter & Gamble Co's interest coverage for the quarter that ended in Dec. 2023 was 23.29. The higher the ratio, the stronger the company's financial strength is.

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

BUE:PG' s Interest Coverage Range Over the Past 10 Years
Min: 19.62 Med: 26.79 Max: 40.58
Current: 21.34

BUE:PG's Interest Coverage is ranked better than
68.05% of 1374 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs BUE:PG: 21.34

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Procter & Gamble Co Interest Coverage Historical Data

The historical data trend for Procter & Gamble Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Procter & Gamble Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

27.17

33.78

35.83

40.58

23.99

Procter & Gamble Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																27.98	19.14	17.34	25.63	23.29

Competitive Comparison

For the Household & Personal Products subindustry, Procter & Gamble Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

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

Procter & Gamble Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Procter & Gamble Co's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Procter & Gamble Co's Interest Expense was ARS-181,440 Mil. Its Operating Income was ARS4,352,160 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS5,993,520 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	4352159.965	/	-181439.999
	=	23.99

Procter & Gamble Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Procter & Gamble Co's Interest Expense was ARS-89,528 Mil. Its Operating Income was ARS2,084,775 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS8,337,656 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2084775.002	/	-89528
	=	23.29

The higher the ratio, the stronger the company's Financial Strength is.

Procter & Gamble Co (BUE:PG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Procter & Gamble Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Procter & Gamble Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Procter & Gamble Co (BUE:PG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Procter & Gamble Co (BUE:PG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PG:USA PG:Peru PG:Mexico 1PG:Italy PRGd:UK 0NOF:UK PRG:Germany PG:Canada PGCO34:Brazil PG:Austria

Address

One Procter and Gamble Plaza, Cincinnati, OH, USA, 45202

Website

https://www.pginvestor.com

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. P&G sold its last remaining food brand, Pringles, to Kellogg in calendar 2012. Sales outside its home turf represent just more than half of the firm's consolidated total.