The business behind the dividend
| Measure | PG | Median | Formula |
|---|---|---|---|
| Return on equity | 29.5% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 23.6% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $14.80bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $15.15bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 22.7% | 15.0% | Operating income ÷ revenue |
| Net margin | 18.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.54x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 22.52x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.68x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.22x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 29.5% | 30.6% | 29.4% | 31.1% | 31.5% | 30.7% | 27.8% | 8.2% | 18.4% | 27.5% | 29.4% |
| Return on capital employed | 23.6% | 24.7% | 23.3% | 24.1% | 24.3% | 24.5% | 21.5% | 7.7% | 17.7% | 18.2% | 23.3% |
| Operating margin | 22.7% | 24.3% | 22.1% | 22.1% | 22.2% | 23.6% | 22.1% | 8.1% | 20.0% | 21.2% | 22.1% |
| Net margin | 18.4% | 19.0% | 17.7% | 17.9% | 18.4% | 18.8% | 18.4% | 5.8% | 14.6% | 23.6% | 18.4% |
| Debt to equity | 0.54x | 0.58x | 0.58x | 0.60x | 0.57x | 0.57x | 0.56x | 0.50x | 0.43x | 0.35x | 0.56x |
| Current ratio | 0.68x | 0.70x | 0.73x | 0.63x | 0.65x | 0.70x | 0.85x | 0.75x | 0.83x | 0.88x | 0.70x |
| Cash conversion | 1.22x | 1.12x | 1.33x | 1.15x | 1.13x | 1.28x | 1.34x | 3.91x | 1.52x | 0.83x | 1.22x |
How it compares in consumer staples
Among the 38 consumer staples companies here measured on free cash flow, Procter & Gamble pays out less than 16 of them. The median for that group is 65.1%, against this company’s 67.6%.
Closest on free cash flow
- Campbell'S (CPB) 65.1%
- Mccormick (MKC) 65.2%
- Flowers Foods (FLO) 65.6%
- Conagra Brands (CAG) 68.4%
Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →