Question: What is the Capital Expenditure Ratio for 2024, and how does it compare to 2023?

The Capital Expenditure Ratio is Capital Expenditures divided by Net Sales.
For 2024:
Capital Expenditures = $3,322 million
Net Sales = $84,039 million
Capital Expenditure Ratio = $3,322 million / $84,039 million = 3.95%

For 2023:
Capital Expenditures = $3,062 million
Net Sales = $82,006 million
Capital Expenditure Ratio = $3,062 million / $82,006 million = 3.73%

Item 8. Financial Statements and Supplementary Data.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 39:
The Procter & Gamble Company 39

Consolidated Statements of Cash Flows

Amounts in millions; fiscal years ended June 30	2024		2023		2022

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR	$	8,246 			$	7,214 			$	10,288

OPERATING ACTIVITIES

Net earnings	14,974 			14,738 			14,793

Depreciation and amortization	2,896 			2,714 			2,807

Share-based compensation expense	562 			545 			528

Deferred income taxes	(244)			(453)			(402)

Loss/(gain) on sale of assets	(215)			(40)			(85)

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

Change in accounts receivable	(766)			(307)			(694)

Change in inventories	(70)			(119)			(1,247)

Change in accounts payable and accrued and other liabilities	1,814 			313 			1,429

Change in other operating assets and liabilities	(1,414)			(1,107)			(635)

Other	969 			564 			229

TOTAL OPERATING ACTIVITIES	19,846 			16,848 			16,723

INVESTING ACTIVITIES

Capital expenditures	(3,322)			(3,062)			(3,156)

Proceeds from asset sales	346 			46 			110

Acquisitions, net of cash acquired	(21)			(765)			(1,381)

Other investing activity	(507)			281 			3

TOTAL INVESTING ACTIVITIES	(3,504)			(3,500)			(4,424)

FINANCING ACTIVITIES

Dividends to shareholders	(9,312)			(8,999)			(8,770)

Additions to short-term debt with original maturities of more than three months	3,528 			17,168 			10,411

Reductions in short-term debt with original maturities of more than three months	(7,689)			(13,031)			(11,478)

Net additions/(reductions) to other short-term debt	857 			(3,319)			917

Additions to long-term debt	3,197 			3,997 			4,385

Reductions in long-term debt	(2,335)			(1,878)			(2,343)

Treasury stock purchases	(5,006)			(7,353)			(10,003)

Impact of stock options and other	1,905 			1,269 			2,005

TOTAL FINANCING ACTIVITIES	(14,855)			(12,146)			(14,876)

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(251)			(170)			(497)

CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1,235 			1,032 			(3,074)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR	$	9,482 			$	8,246 			$	7,214

SUPPLEMENTAL DISCLOSURE

Cash payments for interest	$	878 			$	721 			$	451

Cash payments for income taxes	4,363 			4,278 			3,818

See accompanying Notes to Consolidated Financial Statements.

36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

,
The Procter & Gamble Company 39

Consolidated Statements of Cash Flows

Amounts in millions; fiscal years ended June 30	2024		2023		2022

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR	$	8,246 			$	7,214 			$	10,288

OPERATING ACTIVITIES

Net earnings	14,974 			14,738 			14,793

Depreciation and amortization	2,896 			2,714 			2,807

Share-based compensation expense	562 			545 			528

Deferred income taxes	(244)			(453)			(402)

Loss/(gain) on sale of assets	(215)			(40)			(85)

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

Change in accounts receivable	(766)			(307)			(694)

Change in inventories	(70)			(119)			(1,247)

Change in accounts payable and accrued and other liabilities	1,814 			313 			1,429

Change in other operating assets and liabilities	(1,414)			(1,107)			(635)

Other	969 			564 			229

TOTAL OPERATING ACTIVITIES	19,846 			16,848 			16,723

INVESTING ACTIVITIES

Capital expenditures	(3,322)			(3,062)			(3,156)

Proceeds from asset sales	346 			46 			110

Acquisitions, net of cash acquired	(21)			(765)			(1,381)

Other investing activity	(507)			281 			3

TOTAL INVESTING ACTIVITIES	(3,504)			(3,500)			(4,424)

FINANCING ACTIVITIES

Dividends to shareholders	(9,312)			(8,999)			(8,770)

Additions to short-term debt with original maturities of more than three months	3,528 			17,168 			10,411

Reductions in short-term debt with original maturities of more than three months	(7,689)			(13,031)			(11,478)

Net additions/(reductions) to other short-term debt	857 			(3,319)			917

Additions to long-term debt	3,197 			3,997 			4,385

Reductions in long-term debt	(2,335)			(1,878)			(2,343)

Treasury stock purchases	(5,006)			(7,353)			(10,003)

Impact of stock options and other	1,905 			1,269 			2,005

TOTAL FINANCING ACTIVITIES	(14,855)			(12,146)			(14,876)

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(251)			(170)			(497)

CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1,235 			1,032 			(3,074)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR	$	9,482 			$	8,246 			$	7,214

SUPPLEMENTAL DISCLOSURE

Cash payments for interest	$	878 			$	721 			$	451

Cash payments for income taxes	4,363 			4,278 			3,818

See accompanying Notes to Consolidated Financial Statements.


Question: What is Procter & Gamble's Return on Assets for 2024, and how does it compare to 2023?

ROA is Net Earnings divided by Average Total Assets.
For 2024:
Average Total Assets = ($120,829 million (2023) + $122,370 million (2024)) / 2 = $121,599.5 million
ROA = $14,974 million / $121,599.5 million = 12.3%
For 2023:
ROA = $14,738 million / $120,829 million = 12.2%

Item 8. Financial Statements and Supplementary Data.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 37:
The Procter & Gamble Company 37

Consolidated Balance Sheets

Amounts in millions except stated values; as of June 30	2024		2023

Assets

CURRENT ASSETS

Cash and cash equivalents	$	9,482 			$	8,246

Accounts receivable	6,118 			5,471

INVENTORIES

Materials and supplies	1,617 			1,863

Work in process	929 			956

Finished goods	4,470 			4,254

Total inventories	7,016 			7,073

Prepaid expenses and other current assets	2,095 			1,858

TOTAL CURRENT ASSETS	24,709 			22,648

PROPERTY, PLANT AND EQUIPMENT, NET	22,152 			21,909

GOODWILL	40,303 			40,659

TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET	22,047 			23,783

OTHER NONCURRENT ASSETS	13,158 			11,830

TOTAL ASSETS	$	122,370 			$	120,829

Liabilities and Shareholders' Equity

CURRENT LIABILITIES

Accounts payable	$	15,364 			$	14,598

Accrued and other liabilities	11,073 			10,929

Debt due within one year	7,191 			10,229

TOTAL CURRENT LIABILITIES	33,627 			35,756

LONG-TERM DEBT	25,269 			24,378

DEFERRED INCOME TAXES	6,516 			6,478

OTHER NONCURRENT LIABILITIES	6,398 			7,152

TOTAL LIABILITIES	71,811 			73,764

SHAREHOLDERS' EQUITY

Convertible Class A preferred stock, stated value $1 per share (600 shares authorized)	798 			819

Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized)	- 			-

Common stock, stated value $1 per share (10,000 shares authorized; shares issued:                       2024 - 4,009.2, 2023 - 4,009.2)	4,009 			4,009

Additional paid-in capital	67,684 			66,556

Reserve for ESOP debt retirement	(737)			(821)

Accumulated other comprehensive loss	(11,900)			(12,220)

Treasury stock (shares held:  2024 - 1,652.2; 2023 - 1,647.1)	(133,379)			(129,736)

Retained earnings	123,811 			118,170

Noncontrolling interest	272 			288

TOTAL SHAREHOLDERS' EQUITY	50,559 			47,065

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	122,370 			$	120,829

See accompanying Notes to Consolidated Financial Statements.

36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

,
The Procter & Gamble Company 37

Consolidated Balance Sheets

Amounts in millions except stated values; as of June 30	2024		2023

Assets

CURRENT ASSETS

Cash and cash equivalents	$	9,482 			$	8,246

Accounts receivable	6,118 			5,471

INVENTORIES

Materials and supplies	1,617 			1,863

Work in process	929 			956

Finished goods	4,470 			4,254

Total inventories	7,016 			7,073

Prepaid expenses and other current assets	2,095 			1,858

TOTAL CURRENT ASSETS	24,709 			22,648

PROPERTY, PLANT AND EQUIPMENT, NET	22,152 			21,909

GOODWILL	40,303 			40,659

TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET	22,047 			23,783

OTHER NONCURRENT ASSETS	13,158 			11,830

TOTAL ASSETS	$	122,370 			$	120,829

Liabilities and Shareholders' Equity

CURRENT LIABILITIES

Accounts payable	$	15,364 			$	14,598

Accrued and other liabilities	11,073 			10,929

Debt due within one year	7,191 			10,229

TOTAL CURRENT LIABILITIES	33,627 			35,756

LONG-TERM DEBT	25,269 			24,378

DEFERRED INCOME TAXES	6,516 			6,478

OTHER NONCURRENT LIABILITIES	6,398 			7,152

TOTAL LIABILITIES	71,811 			73,764

SHAREHOLDERS' EQUITY

Convertible Class A preferred stock, stated value $1 per share (600 shares authorized)	798 			819

Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized)	- 			-

Common stock, stated value $1 per share (10,000 shares authorized; shares issued:                       2024 - 4,009.2, 2023 - 4,009.2)	4,009 			4,009

Additional paid-in capital	67,684 			66,556

Reserve for ESOP debt retirement	(737)			(821)

Accumulated other comprehensive loss	(11,900)			(12,220)

Treasury stock (shares held:  2024 - 1,652.2; 2023 - 1,647.1)	(133,379)			(129,736)

Retained earnings	123,811 			118,170

Noncontrolling interest	272 			288

TOTAL SHAREHOLDERS' EQUITY	50,559 			47,065

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	122,370 			$	120,829

See accompanying Notes to Consolidated Financial Statements.


Question: What is the Return on Capital Employed for 2024, and how does it compare to 2023?

ROCE is Operating Income divided by Capital Employed.
For 2024:
Capital Employed = Total Assets - Current Liabilities = $122,370 million - $33,627 million = $88,743 million
ROCE = $18,545 million / $88,743 million = 20.9%
For 2023:
Capital Employed = $120,829 million - $35,756 million = $85,073 million
ROCE = $18,134 million / $85,073 million = 21.3%

Item 8. Financial Statements and Supplementary Data.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 37:
The Procter & Gamble Company 37

Consolidated Balance Sheets

Amounts in millions except stated values; as of June 30	2024		2023

Assets

CURRENT ASSETS

Cash and cash equivalents	$	9,482 			$	8,246

Accounts receivable	6,118 			5,471

INVENTORIES

Materials and supplies	1,617 			1,863

Work in process	929 			956

Finished goods	4,470 			4,254

Total inventories	7,016 			7,073

Prepaid expenses and other current assets	2,095 			1,858

TOTAL CURRENT ASSETS	24,709 			22,648

PROPERTY, PLANT AND EQUIPMENT, NET	22,152 			21,909

GOODWILL	40,303 			40,659

TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET	22,047 			23,783

OTHER NONCURRENT ASSETS	13,158 			11,830

TOTAL ASSETS	$	122,370 			$	120,829

Liabilities and Shareholders' Equity

CURRENT LIABILITIES

Accounts payable	$	15,364 			$	14,598

Accrued and other liabilities	11,073 			10,929

Debt due within one year	7,191 			10,229

TOTAL CURRENT LIABILITIES	33,627 			35,756

LONG-TERM DEBT	25,269 			24,378

DEFERRED INCOME TAXES	6,516 			6,478

OTHER NONCURRENT LIABILITIES	6,398 			7,152

TOTAL LIABILITIES	71,811 			73,764

SHAREHOLDERS' EQUITY

Convertible Class A preferred stock, stated value $1 per share (600 shares authorized)	798 			819

Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized)	- 			-

Common stock, stated value $1 per share (10,000 shares authorized; shares issued:                       2024 - 4,009.2, 2023 - 4,009.2)	4,009 			4,009

Additional paid-in capital	67,684 			66,556

Reserve for ESOP debt retirement	(737)			(821)

Accumulated other comprehensive loss	(11,900)			(12,220)

Treasury stock (shares held:  2024 - 1,652.2; 2023 - 1,647.1)	(133,379)			(129,736)

Retained earnings	123,811 			118,170

Noncontrolling interest	272 			288

TOTAL SHAREHOLDERS' EQUITY	50,559 			47,065

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	122,370 			$	120,829

See accompanying Notes to Consolidated Financial Statements.

36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

,
The Procter & Gamble Company 37

Consolidated Balance Sheets

Amounts in millions except stated values; as of June 30	2024		2023

Assets

CURRENT ASSETS

Cash and cash equivalents	$	9,482 			$	8,246

Accounts receivable	6,118 			5,471

INVENTORIES

Materials and supplies	1,617 			1,863

Work in process	929 			956

Finished goods	4,470 			4,254

Total inventories	7,016 			7,073

Prepaid expenses and other current assets	2,095 			1,858

TOTAL CURRENT ASSETS	24,709 			22,648

PROPERTY, PLANT AND EQUIPMENT, NET	22,152 			21,909

GOODWILL	40,303 			40,659

TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET	22,047 			23,783

OTHER NONCURRENT ASSETS	13,158 			11,830

TOTAL ASSETS	$	122,370 			$	120,829

Liabilities and Shareholders' Equity

CURRENT LIABILITIES

Accounts payable	$	15,364 			$	14,598

Accrued and other liabilities	11,073 			10,929

Debt due within one year	7,191 			10,229

TOTAL CURRENT LIABILITIES	33,627 			35,756

LONG-TERM DEBT	25,269 			24,378

DEFERRED INCOME TAXES	6,516 			6,478

OTHER NONCURRENT LIABILITIES	6,398 			7,152

TOTAL LIABILITIES	71,811 			73,764

SHAREHOLDERS' EQUITY

Convertible Class A preferred stock, stated value $1 per share (600 shares authorized)	798 			819

Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized)	- 			-

Common stock, stated value $1 per share (10,000 shares authorized; shares issued:                       2024 - 4,009.2, 2023 - 4,009.2)	4,009 			4,009

Additional paid-in capital	67,684 			66,556

Reserve for ESOP debt retirement	(737)			(821)

Accumulated other comprehensive loss	(11,900)			(12,220)

Treasury stock (shares held:  2024 - 1,652.2; 2023 - 1,647.1)	(133,379)			(129,736)

Retained earnings	123,811 			118,170

Noncontrolling interest	272 			288

TOTAL SHAREHOLDERS' EQUITY	50,559 			47,065

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	122,370 			$	120,829

See accompanying Notes to Consolidated Financial Statements.


Question: What is the Free Cash Flow to Sales Ratio for 2024, and how does it compare to 2023?

Free Cash Flow to Sales Ratio is Free Cash Flow divided by Net Sales.
For 2024:
Free Cash Flow = Net Cash from Operating Activities - Capital Expenditures = $19,846 million - $3,322 million = $16,524 million
Net Sales = $84,039 million
Free Cash Flow to Sales Ratio = $16,524 million / $84,039 million = 19.6%
For 2023:
Free Cash Flow = $16,848 million - $3,062 million = $13,786 million
Net Sales = $82,006 million
Free Cash Flow to Sales Ratio = $13,786 million / $82,006 million = 16.8%

Item 8. Financial Statements and Supplementary Data.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 39:
The Procter & Gamble Company 39

Consolidated Statements of Cash Flows

Amounts in millions; fiscal years ended June 30	2024		2023		2022

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR	$	8,246 			$	7,214 			$	10,288

OPERATING ACTIVITIES

Net earnings	14,974 			14,738 			14,793

Depreciation and amortization	2,896 			2,714 			2,807

Share-based compensation expense	562 			545 			528

Deferred income taxes	(244)			(453)			(402)

Loss/(gain) on sale of assets	(215)			(40)			(85)

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

Change in accounts receivable	(766)			(307)			(694)

Change in inventories	(70)			(119)			(1,247)

Change in accounts payable and accrued and other liabilities	1,814 			313 			1,429

Change in other operating assets and liabilities	(1,414)			(1,107)			(635)

Other	969 			564 			229

TOTAL OPERATING ACTIVITIES	19,846 			16,848 			16,723

INVESTING ACTIVITIES

Capital expenditures	(3,322)			(3,062)			(3,156)

Proceeds from asset sales	346 			46 			110

Acquisitions, net of cash acquired	(21)			(765)			(1,381)

Other investing activity	(507)			281 			3

TOTAL INVESTING ACTIVITIES	(3,504)			(3,500)			(4,424)

FINANCING ACTIVITIES

Dividends to shareholders	(9,312)			(8,999)			(8,770)

Additions to short-term debt with original maturities of more than three months	3,528 			17,168 			10,411

Reductions in short-term debt with original maturities of more than three months	(7,689)			(13,031)			(11,478)

Net additions/(reductions) to other short-term debt	857 			(3,319)			917

Additions to long-term debt	3,197 			3,997 			4,385

Reductions in long-term debt	(2,335)			(1,878)			(2,343)

Treasury stock purchases	(5,006)			(7,353)			(10,003)

Impact of stock options and other	1,905 			1,269 			2,005

TOTAL FINANCING ACTIVITIES	(14,855)			(12,146)			(14,876)

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(251)			(170)			(497)

CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1,235 			1,032 			(3,074)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR	$	9,482 			$	8,246 			$	7,214

SUPPLEMENTAL DISCLOSURE

Cash payments for interest	$	878 			$	721 			$	451

Cash payments for income taxes	4,363 			4,278 			3,818

See accompanying Notes to Consolidated Financial Statements.

36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

,
The Procter & Gamble Company 39

Consolidated Statements of Cash Flows

Amounts in millions; fiscal years ended June 30	2024		2023		2022

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR	$	8,246 			$	7,214 			$	10,288

OPERATING ACTIVITIES

Net earnings	14,974 			14,738 			14,793

Depreciation and amortization	2,896 			2,714 			2,807

Share-based compensation expense	562 			545 			528

Deferred income taxes	(244)			(453)			(402)

Loss/(gain) on sale of assets	(215)			(40)			(85)

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

Change in accounts receivable	(766)			(307)			(694)

Change in inventories	(70)			(119)			(1,247)

Change in accounts payable and accrued and other liabilities	1,814 			313 			1,429

Change in other operating assets and liabilities	(1,414)			(1,107)			(635)

Other	969 			564 			229

TOTAL OPERATING ACTIVITIES	19,846 			16,848 			16,723

INVESTING ACTIVITIES

Capital expenditures	(3,322)			(3,062)			(3,156)

Proceeds from asset sales	346 			46 			110

Acquisitions, net of cash acquired	(21)			(765)			(1,381)

Other investing activity	(507)			281 			3

TOTAL INVESTING ACTIVITIES	(3,504)			(3,500)			(4,424)

FINANCING ACTIVITIES

Dividends to shareholders	(9,312)			(8,999)			(8,770)

Additions to short-term debt with original maturities of more than three months	3,528 			17,168 			10,411

Reductions in short-term debt with original maturities of more than three months	(7,689)			(13,031)			(11,478)

Net additions/(reductions) to other short-term debt	857 			(3,319)			917

Additions to long-term debt	3,197 			3,997 			4,385

Reductions in long-term debt	(2,335)			(1,878)			(2,343)

Treasury stock purchases	(5,006)			(7,353)			(10,003)

Impact of stock options and other	1,905 			1,269 			2,005

TOTAL FINANCING ACTIVITIES	(14,855)			(12,146)			(14,876)

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(251)			(170)			(497)

CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1,235 			1,032 			(3,074)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR	$	9,482 			$	8,246 			$	7,214

SUPPLEMENTAL DISCLOSURE

Cash payments for interest	$	878 			$	721 			$	451

Cash payments for income taxes	4,363 			4,278 			3,818

See accompanying Notes to Consolidated Financial Statements.


Question: What is the Cash Conversion Cycle for 2024, and how does it compare to 2023?

The Cash Conversion Cycle (CCC) is calculated as Days Inventory Outstanding (DIO) + Days Sales Outstanding (DSO) - Days Payable Outstanding (DPO).
For 2024:
DIO = (Average Inventory / Cost of Goods Sold) * 365
Average Inventory = ($7,073 million + $7,016 million) / 2 = $7,044.5 million
DIO = ($7,044.5 million / $40,848 million) * 365 = 63.0 days
DSO = (Average Accounts Receivable / Net Sales) * 365
Average Accounts Receivable = ($5,471 million + $6,118 million) / 2 = $5,794.5 million
DSO = ($5,794.5 million / $84,039 million) * 365 = 25.1 days
DPO = (Average Accounts Payable / Cost of Goods Sold) * 365
Average Accounts Payable = ($14,598 million + $15,364 million) / 2 = $14,981 million
DPO = ($14,981 million / $40,848 million) * 365 = 134.2 days
CCC = DIO + DSO - DPO = 63.0 days + 25.1 days - 134.2 days = -46.1 days

For 2023:
DIO = ($7,073 million / $42,760 million) * 365 = 60.4 days
DSO = ($5,471 million / $82,006 million) * 365 = 24.4 days
DPO = ($14,598 million / $42,760 million) * 365 = 124.6 days
CCC = 60.4 days + 24.4 days - 107.6 days = -39.8 days

Analysis: The Cash Conversion Cycle became slightly more negative from -39.8 days in 2023 to -46.1 days in 2024. This improvement indicates that P&G is more efficient in managing its working capital, reducing the time between outlaying cash and receiving cash from sales.

Item 8. Financial Statements and Supplementary Data.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 37:
The Procter & Gamble Company 37

Consolidated Balance Sheets

Amounts in millions except stated values; as of June 30	2024		2023

Assets

CURRENT ASSETS

Cash and cash equivalents	$	9,482 			$	8,246

Accounts receivable	6,118 			5,471

INVENTORIES

Materials and supplies	1,617 			1,863

Work in process	929 			956

Finished goods	4,470 			4,254

Total inventories	7,016 			7,073

Prepaid expenses and other current assets	2,095 			1,858

TOTAL CURRENT ASSETS	24,709 			22,648

PROPERTY, PLANT AND EQUIPMENT, NET	22,152 			21,909

GOODWILL	40,303 			40,659

TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET	22,047 			23,783

OTHER NONCURRENT ASSETS	13,158 			11,830

TOTAL ASSETS	$	122,370 			$	120,829

Liabilities and Shareholders' Equity

CURRENT LIABILITIES

Accounts payable	$	15,364 			$	14,598

Accrued and other liabilities	11,073 			10,929

Debt due within one year	7,191 			10,229

TOTAL CURRENT LIABILITIES	33,627 			35,756

LONG-TERM DEBT	25,269 			24,378

DEFERRED INCOME TAXES	6,516 			6,478

OTHER NONCURRENT LIABILITIES	6,398 			7,152

TOTAL LIABILITIES	71,811 			73,764

SHAREHOLDERS' EQUITY

Convertible Class A preferred stock, stated value $1 per share (600 shares authorized)	798 			819

Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized)	- 			-

Common stock, stated value $1 per share (10,000 shares authorized; shares issued:                       2024 - 4,009.2, 2023 - 4,009.2)	4,009 			4,009

Additional paid-in capital	67,684 			66,556

Reserve for ESOP debt retirement	(737)			(821)

Accumulated other comprehensive loss	(11,900)			(12,220)

Treasury stock (shares held:  2024 - 1,652.2; 2023 - 1,647.1)	(133,379)			(129,736)

Retained earnings	123,811 			118,170

Noncontrolling interest	272 			288

TOTAL SHAREHOLDERS' EQUITY	50,559 			47,065

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	122,370 			$	120,829

See accompanying Notes to Consolidated Financial Statements.

36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

,
The Procter & Gamble Company 37

Consolidated Balance Sheets

Amounts in millions except stated values; as of June 30	2024		2023

Assets

CURRENT ASSETS

Cash and cash equivalents	$	9,482 			$	8,246

Accounts receivable	6,118 			5,471

INVENTORIES

Materials and supplies	1,617 			1,863

Work in process	929 			956

Finished goods	4,470 			4,254

Total inventories	7,016 			7,073

Prepaid expenses and other current assets	2,095 			1,858

TOTAL CURRENT ASSETS	24,709 			22,648

PROPERTY, PLANT AND EQUIPMENT, NET	22,152 			21,909

GOODWILL	40,303 			40,659

TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET	22,047 			23,783

OTHER NONCURRENT ASSETS	13,158 			11,830

TOTAL ASSETS	$	122,370 			$	120,829

Liabilities and Shareholders' Equity

CURRENT LIABILITIES

Accounts payable	$	15,364 			$	14,598

Accrued and other liabilities	11,073 			10,929

Debt due within one year	7,191 			10,229

TOTAL CURRENT LIABILITIES	33,627 			35,756

LONG-TERM DEBT	25,269 			24,378

DEFERRED INCOME TAXES	6,516 			6,478

OTHER NONCURRENT LIABILITIES	6,398 			7,152

TOTAL LIABILITIES	71,811 			73,764

SHAREHOLDERS' EQUITY

Convertible Class A preferred stock, stated value $1 per share (600 shares authorized)	798 			819

Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized)	- 			-

Common stock, stated value $1 per share (10,000 shares authorized; shares issued:                       2024 - 4,009.2, 2023 - 4,009.2)	4,009 			4,009

Additional paid-in capital	67,684 			66,556

Reserve for ESOP debt retirement	(737)			(821)

Accumulated other comprehensive loss	(11,900)			(12,220)

Treasury stock (shares held:  2024 - 1,652.2; 2023 - 1,647.1)	(133,379)			(129,736)

Retained earnings	123,811 			118,170

Noncontrolling interest	272 			288

TOTAL SHAREHOLDERS' EQUITY	50,559 			47,065

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	122,370 			$	120,829

See accompanying Notes to Consolidated Financial Statements.


Question: What is the Revenue per Employee for 2024, and how does it compare to 2023?

Revenue per Employee is Net Sales divided by the number of employees. For 2024:

Number of Employees = 108,000
Revenue per Employee = $84,039 million / 108,000 = $778,139
For 2023:

Number of Employees = 108,000
Revenue per Employee = $82,006 million / 108,000 = $759,314

Item 1. Business.;Item 8. Financial Statements and Supplementary Data.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 2:
2 The Procter & Gamble Company

Government Regulation. Our Company is subject to a wide variety of laws and regulations across the countries in which we do business. In the United States, many of our products and manufacturing operations are subject to one or more federal or state regulatory agencies, including the U.S. Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Federal Trade Commission (FTC) and the Consumer Product Safety Commission (CPSC). We are also subject to anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act, and antitrust and competition laws and regulations that govern our dealings with suppliers, customers, competitors and government officials.
In addition, many foreign jurisdictions in which we do business have regulations and regulatory bodies that govern similar aspects of our operations and products, in some cases to an even more significant degree. We are also subject to expanding laws and regulations related to environmental protection and other sustainability-related matters, non-financial reporting and diligence, labor and employment, trade, taxation and privacy and data protection, including the European Union's General Data Protection Regulation and similar regulations in states within the United States and in countries around the world.
The Company has in place compliance programs and internal and external experts to help guide our business in complying with these and other existing laws and regulations that apply to us around the globe; and we have made, and plan to continue making, necessary expenditures for compliance with these laws and regulations. We also expect that our many suppliers, consultants and other third parties working on our behalf share our commitment to compliance, and we have policies and procedures in place to manage these relationships, though they inherently involve a lesser degree of control over operations and governance. We do not expect that the Company's expenditures for compliance with current government regulations, including current environmental regulations, will have a material effect on our total capital expenditures, earnings or competitive position in fiscal year 2025 as compared to prior periods.
Human Capital. Our employees are a key source of competitive advantage. Their actions, guided by our Purpose, Values and Principles (PVPs), are critical to the long-term success of our business. We aim to retain our talented employees by offering competitive compensation and benefits, strong career development and a respectful and inclusive culture that provides equal opportunity for all.
Our Board of Directors, through the Compensation and Leadership Development Committee (C&LD Committee), provides oversight of the Company's policies and strategy relating to talent, including equality and inclusion, as well as the Company's compensation principles and practices. The C&LD Committee also evaluates and approves the Company's compensation plans, policies and programs applicable to our senior executives.

Employees

As of June 30, 2024, the Company had approximately 108,000 employees, unchanged versus the prior year. The total number of employees is an estimate of total Company employees excluding interns, co-ops, contractors and employees of joint ventures. 48% of our employees are in manufacturing roles and 28% of our employees are located in the United States. 42% of our global employees are women and 32% of our U.S. employees identify as multicultural.

Training and Development

We focus on attracting, developing and retaining the widest pool of talent available, both from universities and the broader market. We recruit from universities across markets in which we compete and are generally able to select from the top talent. We focus on developing our employees by providing a variety of job experiences, training programs and skill development opportunities. Given our develop-from-within model for staffing most of our senior leadership positions, it is particularly important for us to ensure holistic growth and full engagement of our employees.

Diversity, Equality and Inclusion

As a consumer products company, we believe that it is important for our workforce to reflect the diversity of our consumers worldwide. We also seek to foster an inclusive work environment where each individual can bring their authentic self, which helps drive innovation and enables us to better serve our consumers. We aspire to achieve equal gender representation globally and at key management and leadership levels. Within the U.S. workforce, our aspiration is to achieve 40% multicultural representation overall as well as at management and leadership levels.

Compensation and Benefits

Market-competitive compensation and reward programs are critical elements of our employee value equation to attract and retain the best talent. Our total rewards programs are based on the principles of paying for performance, paying competitively versus peer companies that we compete with for talent in the marketplace and focusing on long-term success through a combination of short-term and long-term incentive programs. We also offer competitive benefit programs, including retirement plans and health insurance, in line with local country practices, with flexibility to accommodate the needs of a diverse workforce.
Sustainability. Environmental sustainability is integrated into our business strategy. We are focused on designing and manufacturing irresistibly superior products that are more sustainable. We aim to reduce our own environmental footprint and enable our consumers to reduce their footprint without compromising on the performance of the products they use. We develop and license technologies that can be used across industries to improve environmental sustainability at a broader scale.

, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings
|    |                                                                          |        |        |      |        |      |        |        |    |        |
|---:|:-------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:-------|
|  1 | Amounts in millions except per share amounts; fiscal years ended June 30 | 2024   |        | 2023 |        | 2022 |        |        |    |        |
|  2 | NET SALES                                                                | $      | 84,039 |      |        | $    | 82,006 |        | $  | 80,187 |
|  3 | Cost of products sold                                                    | 40,848 |        |      | 42,760 |      |        | 42,157 |    |        |
|  4 | Selling, general and administrative expense                              | 23,305 |        |      | 21,112 |      |        | 20,217 |    |        |
|  5 | Indefinite-lived intangible asset impairment charge                      | 1,341  |        |      | -      |      |        | -      |    |        |
|  6 | OPERATING INCOME                                                         | 18,545 |        |      | 18,134 |      |        | 17,813 |    |        |
|  7 | Interest expense                                                         | (925)  |        |      | (756)  |      |        | (439)  |    |        |
|  8 | Interest income                                                          | 473    |        |      | 307    |      |        | 51     |    |        |
|  9 | Other non-operating income, net                                          | 668    |        |      | 668    |      |        | 570    |    |        |
| 10 | EARNINGS BEFORE INCOME TAXES                                             | 18,761 |        |      | 18,353 |      |        | 17,995 |    |        |
| 11 | Income taxes                                                             | 3,787  |        |      | 3,615  |      |        | 3,202  |    |        |
| 14 | NET EARNINGS                                                             | 14,974 |        |      | 14,738 |      |        | 14,793 |    |        |
| 15 | Less: Net earnings attributable to noncontrolling interests              | 95     |        |      | 85     |      |        | 51     |    |        |
| 16 | NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE                            | $      | 14,879 |      |        | $    | 14,653 |        | $  | 14,742 |
| 18 | NET EARNINGS PER COMMON SHARE (1)                                        |        |        |      |        |      |        |        |    |        |
| 19 | Basic                                                                    | $      | 6.18   |      |        | $    | 6.07   |        | $  | 6.00   |
| 23 | Diluted                                                                  | $      | 6.02   |      |        | $    | 5.90   |        | $  | 5.81   |
(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income
|    |                                                                                |        |        |      |        |      |        |         |    |        |
|---:|:--------------------------------------------------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------|
|  1 | Amounts in millions; fiscal years ended June 30                                                                     | 2024   |        | 2023 |        | 2022 |        |         |    |        |
|  2 | NET EARNINGS                                                                                | $      | 14,974 |      |        | $    | 14,738 |         | $  | 14,793 |
|  3 | OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX                                                                       |        |        |      |        |      |        |         |    |        |
|  4 | Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)                   | (226)  |        |      | (71)   |      |        | (1,450) |    |        |
|  5 | Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively) | (3)    |        |      | (7)    |      |        | 5       |    |        |
|  6 | Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)   | 546    |        |      | 40     |      |        | 2,992   |    |        |
|  7 | TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX                                                                 | 317    |        |      | (38)   |      |        | 1,547   |    |        |
|  8 | TOTAL COMPREHENSIVE INCOME                                                                                | 15,291 |        |      | 14,700 |      |        | 16,340  |    |        |
|  9 | Less: Comprehensive income attributable to noncontrolling interests                                                 | 92     |        |      | 78     |      |        | 43      |    |        |
| 10 | TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE                                                         | $      | 15,199 |      |        | $    | 14,622 |         | $  | 16,297 |

See accompanying Notes to Consolidated Financial Statements.

2 The Procter & Gamble Company

Government Regulation. Our Company is subject to a wide variety of laws and regulations across the countries in which we do business. In the United States, many of our products and manufacturing operations are subject to one or more federal or state regulatory agencies, including the U.S. Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Federal Trade Commission (FTC) and the Consumer Product Safety Commission (CPSC). We are also subject to anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act, and antitrust and competition laws and regulations that govern our dealings with suppliers, customers, competitors and government officials.
In addition, many foreign jurisdictions in which we do business have regulations and regulatory bodies that govern similar aspects of our operations and products, in some cases to an even more significant degree. We are also subject to expanding laws and regulations related to environmental protection and other sustainability-related matters, non-financial reporting and diligence, labor and employment, trade, taxation and privacy and data protection, including the European Union's General Data Protection Regulation and similar regulations in states within the United States and in countries around the world.
The Company has in place compliance programs and internal and external experts to help guide our business in complying with these and other existing laws and regulations that apply to us around the globe; and we have made, and plan to continue making, necessary expenditures for compliance with these laws and regulations. We also expect that our many suppliers, consultants and other third parties working on our behalf share our commitment to compliance, and we have policies and procedures in place to manage these relationships, though they inherently involve a lesser degree of control over operations and governance. We do not expect that the Company's expenditures for compliance with current government regulations, including current environmental regulations, will have a material effect on our total capital expenditures, earnings or competitive position in fiscal year 2025 as compared to prior periods.
Human Capital. Our employees are a key source of competitive advantage. Their actions, guided by our Purpose, Values and Principles (PVPs), are critical to the long-term success of our business. We aim to retain our talented employees by offering competitive compensation and benefits, strong career development and a respectful and inclusive culture that provides equal opportunity for all.
Our Board of Directors, through the Compensation and Leadership Development Committee (C&LD Committee), provides oversight of the Company's policies and strategy relating to talent, including equality and inclusion, as well as the Company's compensation principles and practices. The C&LD Committee also evaluates and approves the Company's compensation plans, policies and programs applicable to our senior executives.

Employees

As of June 30, 2024, the Company had approximately 108,000 employees, unchanged versus the prior year. The total number of employees is an estimate of total Company employees excluding interns, co-ops, contractors and employees of joint ventures. 48% of our employees are in manufacturing roles and 28% of our employees are located in the United States. 42% of our global employees are women and 32% of our U.S. employees identify as multicultural.

Training and Development

We focus on attracting, developing and retaining the widest pool of talent available, both from universities and the broader market. We recruit from universities across markets in which we compete and are generally able to select from the top talent. We focus on developing our employees by providing a variety of job experiences, training programs and skill development opportunities. Given our develop-from-within model for staffing most of our senior leadership positions, it is particularly important for us to ensure holistic growth and full engagement of our employees.

Diversity, Equality and Inclusion

As a consumer products company, we believe that it is important for our workforce to reflect the diversity of our consumers worldwide. We also seek to foster an inclusive work environment where each individual can bring their authentic self, which helps drive innovation and enables us to better serve our consumers. We aspire to achieve equal gender representation globally and at key management and leadership levels. Within the U.S. workforce, our aspiration is to achieve 40% multicultural representation overall as well as at management and leadership levels.

Compensation and Benefits

Market-competitive compensation and reward programs are critical elements of our employee value equation to attract and retain the best talent. Our total rewards programs are based on the principles of paying for performance, paying competitively versus peer companies that we compete with for talent in the marketplace and focusing on long-term success through a combination of short-term and long-term incentive programs. We also offer competitive benefit programs, including retirement plans and health insurance, in line with local country practices, with flexibility to accommodate the needs of a diverse workforce.
Sustainability. Environmental sustainability is integrated into our business strategy. We are focused on designing and manufacturing irresistibly superior products that are more sustainable. We aim to reduce our own environmental footprint and enable our consumers to reduce their footprint without compromising on the performance of the products they use. We develop and license technologies that can be used across industries to improve environmental sustainability at a broader scale.

,
36 The Procter & Gamble Company

Consolidated Statements of Earnings
|    |                                                                          |        |        |      |        |      |        |        |    |        |
|---:|:-------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:-------|
|  1 | Amounts in millions except per share amounts; fiscal years ended June 30 | 2024   |        | 2023 |        | 2022 |        |        |    |        |
|  2 | NET SALES                                                                | $      | 84,039 |      |        | $    | 82,006 |        | $  | 80,187 |
|  3 | Cost of products sold                                                    | 40,848 |        |      | 42,760 |      |        | 42,157 |    |        |
|  4 | Selling, general and administrative expense                              | 23,305 |        |      | 21,112 |      |        | 20,217 |    |        |
|  5 | Indefinite-lived intangible asset impairment charge                      | 1,341  |        |      | -      |      |        | -      |    |        |
|  6 | OPERATING INCOME                                                         | 18,545 |        |      | 18,134 |      |        | 17,813 |    |        |
|  7 | Interest expense                                                         | (925)  |        |      | (756)  |      |        | (439)  |    |        |
|  8 | Interest income                                                          | 473    |        |      | 307    |      |        | 51     |    |        |
|  9 | Other non-operating income, net                                          | 668    |        |      | 668    |      |        | 570    |    |        |
| 10 | EARNINGS BEFORE INCOME TAXES                                             | 18,761 |        |      | 18,353 |      |        | 17,995 |    |        |
| 11 | Income taxes                                                             | 3,787  |        |      | 3,615  |      |        | 3,202  |    |        |
| 14 | NET EARNINGS                                                             | 14,974 |        |      | 14,738 |      |        | 14,793 |    |        |
| 15 | Less: Net earnings attributable to noncontrolling interests              | 95     |        |      | 85     |      |        | 51     |    |        |
| 16 | NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE                            | $      | 14,879 |      |        | $    | 14,653 |        | $  | 14,742 |
| 18 | NET EARNINGS PER COMMON SHARE (1)                                        |        |        |      |        |      |        |        |    |        |
| 19 | Basic                                                                    | $      | 6.18   |      |        | $    | 6.07   |        | $  | 6.00   |
| 23 | Diluted                                                                  | $      | 6.02   |      |        | $    | 5.90   |        | $  | 5.81   |
(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income
|    |                                                                                |        |        |      |        |      |        |         |    |        |
|---:|:--------------------------------------------------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------|
|  1 | Amounts in millions; fiscal years ended June 30                                                                     | 2024   |        | 2023 |        | 2022 |        |         |    |        |
|  2 | NET EARNINGS                                                                                | $      | 14,974 |      |        | $    | 14,738 |         | $  | 14,793 |
|  3 | OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX                                                                       |        |        |      |        |      |        |         |    |        |
|  4 | Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)                   | (226)  |        |      | (71)   |      |        | (1,450) |    |        |
|  5 | Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively) | (3)    |        |      | (7)    |      |        | 5       |    |        |
|  6 | Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)   | 546    |        |      | 40     |      |        | 2,992   |    |        |
|  7 | TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX                                                                 | 317    |        |      | (38)   |      |        | 1,547   |    |        |
|  8 | TOTAL COMPREHENSIVE INCOME                                                                                | 15,291 |        |      | 14,700 |      |        | 16,340  |    |        |
|  9 | Less: Comprehensive income attributable to noncontrolling interests                                                 | 92     |        |      | 78     |      |        | 43      |    |        |
| 10 | TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE                                                         | $      | 15,199 |      |        | $    | 14,622 |         | $  | 16,297 |

See accompanying Notes to Consolidated Financial Statements.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 2:
2 The Procter & Gamble Company

Government Regulation. Our Company is subject to a wide variety of laws and regulations across the countries in which we do business. In the United States, many of our products and manufacturing operations are subject to one or more federal or state regulatory agencies, including the U.S. Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Federal Trade Commission (FTC) and the Consumer Product Safety Commission (CPSC). We are also subject to anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act, and antitrust and competition laws and regulations that govern our dealings with suppliers, customers, competitors and government officials.
In addition, many foreign jurisdictions in which we do business have regulations and regulatory bodies that govern similar aspects of our operations and products, in some cases to an even more significant degree. We are also subject to expanding laws and regulations related to environmental protection and other sustainability-related matters, non-financial reporting and diligence, labor and employment, trade, taxation and privacy and data protection, including the European Union's General Data Protection Regulation and similar regulations in states within the United States and in countries around the world.
The Company has in place compliance programs and internal and external experts to help guide our business in complying with these and other existing laws and regulations that apply to us around the globe; and we have made, and plan to continue making, necessary expenditures for compliance with these laws and regulations. We also expect that our many suppliers, consultants and other third parties working on our behalf share our commitment to compliance, and we have policies and procedures in place to manage these relationships, though they inherently involve a lesser degree of control over operations and governance. We do not expect that the Company's expenditures for compliance with current government regulations, including current environmental regulations, will have a material effect on our total capital expenditures, earnings or competitive position in fiscal year 2025 as compared to prior periods.
Human Capital. Our employees are a key source of competitive advantage. Their actions, guided by our Purpose, Values and Principles (PVPs), are critical to the long-term success of our business. We aim to retain our talented employees by offering competitive compensation and benefits, strong career development and a respectful and inclusive culture that provides equal opportunity for all.
Our Board of Directors, through the Compensation and Leadership Development Committee (C&LD Committee), provides oversight of the Company's policies and strategy relating to talent, including equality and inclusion, as well as the Company's compensation principles and practices. The C&LD Committee also evaluates and approves the Company's compensation plans, policies and programs applicable to our senior executives.

Employees

As of June 30, 2024, the Company had approximately 108,000 employees, unchanged versus the prior year. The total number of employees is an estimate of total Company employees excluding interns, co-ops, contractors and employees of joint ventures. 48% of our employees are in manufacturing roles and 28% of our employees are located in the United States. 42% of our global employees are women and 32% of our U.S. employees identify as multicultural.

Training and Development

We focus on attracting, developing and retaining the widest pool of talent available, both from universities and the broader market. We recruit from universities across markets in which we compete and are generally able to select from the top talent. We focus on developing our employees by providing a variety of job experiences, training programs and skill development opportunities. Given our develop-from-within model for staffing most of our senior leadership positions, it is particularly important for us to ensure holistic growth and full engagement of our employees.

Diversity, Equality and Inclusion

As a consumer products company, we believe that it is important for our workforce to reflect the diversity of our consumers worldwide. We also seek to foster an inclusive work environment where each individual can bring their authentic self, which helps drive innovation and enables us to better serve our consumers. We aspire to achieve equal gender representation globally and at key management and leadership levels. Within the U.S. workforce, our aspiration is to achieve 40% multicultural representation overall as well as at management and leadership levels.

Compensation and Benefits

Market-competitive compensation and reward programs are critical elements of our employee value equation to attract and retain the best talent. Our total rewards programs are based on the principles of paying for performance, paying competitively versus peer companies that we compete with for talent in the marketplace and focusing on long-term success through a combination of short-term and long-term incentive programs. We also offer competitive benefit programs, including retirement plans and health insurance, in line with local country practices, with flexibility to accommodate the needs of a diverse workforce.
Sustainability. Environmental sustainability is integrated into our business strategy. We are focused on designing and manufacturing irresistibly superior products that are more sustainable. We aim to reduce our own environmental footprint and enable our consumers to reduce their footprint without compromising on the performance of the products they use. We develop and license technologies that can be used across industries to improve environmental sustainability at a broader scale.

, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.

2 The Procter & Gamble Company

Government Regulation. Our Company is subject to a wide variety of laws and regulations across the countries in which we do business. In the United States, many of our products and manufacturing operations are subject to one or more federal or state regulatory agencies, including the U.S. Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Federal Trade Commission (FTC) and the Consumer Product Safety Commission (CPSC). We are also subject to anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act, and antitrust and competition laws and regulations that govern our dealings with suppliers, customers, competitors and government officials.
In addition, many foreign jurisdictions in which we do business have regulations and regulatory bodies that govern similar aspects of our operations and products, in some cases to an even more significant degree. We are also subject to expanding laws and regulations related to environmental protection and other sustainability-related matters, non-financial reporting and diligence, labor and employment, trade, taxation and privacy and data protection, including the European Union's General Data Protection Regulation and similar regulations in states within the United States and in countries around the world.
The Company has in place compliance programs and internal and external experts to help guide our business in complying with these and other existing laws and regulations that apply to us around the globe; and we have made, and plan to continue making, necessary expenditures for compliance with these laws and regulations. We also expect that our many suppliers, consultants and other third parties working on our behalf share our commitment to compliance, and we have policies and procedures in place to manage these relationships, though they inherently involve a lesser degree of control over operations and governance. We do not expect that the Company's expenditures for compliance with current government regulations, including current environmental regulations, will have a material effect on our total capital expenditures, earnings or competitive position in fiscal year 2025 as compared to prior periods.
Human Capital. Our employees are a key source of competitive advantage. Their actions, guided by our Purpose, Values and Principles (PVPs), are critical to the long-term success of our business. We aim to retain our talented employees by offering competitive compensation and benefits, strong career development and a respectful and inclusive culture that provides equal opportunity for all.
Our Board of Directors, through the Compensation and Leadership Development Committee (C&LD Committee), provides oversight of the Company's policies and strategy relating to talent, including equality and inclusion, as well as the Company's compensation principles and practices. The C&LD Committee also evaluates and approves the Company's compensation plans, policies and programs applicable to our senior executives.

Employees

As of June 30, 2024, the Company had approximately 108,000 employees, unchanged versus the prior year. The total number of employees is an estimate of total Company employees excluding interns, co-ops, contractors and employees of joint ventures. 48% of our employees are in manufacturing roles and 28% of our employees are located in the United States. 42% of our global employees are women and 32% of our U.S. employees identify as multicultural.

Training and Development

We focus on attracting, developing and retaining the widest pool of talent available, both from universities and the broader market. We recruit from universities across markets in which we compete and are generally able to select from the top talent. We focus on developing our employees by providing a variety of job experiences, training programs and skill development opportunities. Given our develop-from-within model for staffing most of our senior leadership positions, it is particularly important for us to ensure holistic growth and full engagement of our employees.

Diversity, Equality and Inclusion

As a consumer products company, we believe that it is important for our workforce to reflect the diversity of our consumers worldwide. We also seek to foster an inclusive work environment where each individual can bring their authentic self, which helps drive innovation and enables us to better serve our consumers. We aspire to achieve equal gender representation globally and at key management and leadership levels. Within the U.S. workforce, our aspiration is to achieve 40% multicultural representation overall as well as at management and leadership levels.

Compensation and Benefits

Market-competitive compensation and reward programs are critical elements of our employee value equation to attract and retain the best talent. Our total rewards programs are based on the principles of paying for performance, paying competitively versus peer companies that we compete with for talent in the marketplace and focusing on long-term success through a combination of short-term and long-term incentive programs. We also offer competitive benefit programs, including retirement plans and health insurance, in line with local country practices, with flexibility to accommodate the needs of a diverse workforce.
Sustainability. Environmental sustainability is integrated into our business strategy. We are focused on designing and manufacturing irresistibly superior products that are more sustainable. We aim to reduce our own environmental footprint and enable our consumers to reduce their footprint without compromising on the performance of the products they use. We develop and license technologies that can be used across industries to improve environmental sustainability at a broader scale.

,
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.


Question: What is the Revenue Growth Rate from 2023 to 2024?

The Revenue Growth Rate is calculated as (Revenue for 2024 - Revenue for 2023) / Revenue for 2023.

Revenue Growth Rate = ($84,039 million - $82,006 million) / $82,006 million = 2.5%

Item 8. Financial Statements and Supplementary Data.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 36:
36 The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; fiscal years ended June 30	2024		2023		2022

NET SALES	$	84,039 			$	82,006 			$	80,187

Cost of products sold	40,848 			42,760 			42,157

Selling, general and administrative expense	23,305 			21,112 			20,217

Indefinite-lived intangible asset impairment charge	1,341 			- 			-

OPERATING INCOME	18,545 			18,134 			17,813

Interest expense	(925)			(756)			(439)

Interest income	473 			307 			51

Other non-operating income, net	668 			668 			570

EARNINGS BEFORE INCOME TAXES	18,761 			18,353 			17,995

Income taxes	3,787 			3,615 			3,202

NET EARNINGS	14,974 			14,738 			14,793

Less: Net earnings attributable to noncontrolling interests	95 			85 			51

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$	14,879 			$	14,653 			$	14,742

NET EARNINGS PER COMMON SHARE (1)

Basic	$	6.18 			$	6.07 			$	6.00

Diluted	$	6.02 			$	5.90 			$	5.81

(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

Consolidated Statements of Comprehensive Income

Amounts in millions; fiscal years ended June 30	2024		2023		2022

NET EARNINGS	$	14,974 			$	14,738 			$	14,793

OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX

Foreign currency translation (net of tax (benefit)/expense of $66, $(197) and $515, respectively)	(226)			(71)			(1,450)

Unrealized gains/(losses) on investment securities(net of tax (benefit)/expense of $(1), $(2) and $1, respectively)	(3)			(7)			5

Unrealized gains on defined benefit postretirement plans(net of tax expense of $230, $9 and $1,022, respectively)	546 			40 			2,992

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX	317 			(38)			1,547

TOTAL COMPREHENSIVE INCOME	15,291 			14,700 			16,340

Less: Comprehensive income attributable to noncontrolling interests	92 			78 			43

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO           PROCTER & GAMBLE	$	15,199 			$	14,622 			$	16,297

See accompanying Notes to Consolidated Financial Statements.


Question: What is the Free Cash Flow Margin for 2024, and how does it compare to 2023?

Free Cash Flow Margin is Free Cash Flow divided by Net Sales. For 2024:

Free Cash Flow = $16,946 million
Free Cash Flow Margin = $16,946 million / $84,039 million = 20.2%
For 2023:

Free Cash Flow Margin = $14,011 million / $82,006 million = 17.1%

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 25:
The Procter & Gamble Company 25

Cash Flow Analysis

|    |                                           |          |        |      |          |    |        |
|---:|:------------------------------------------|:---------|:-------|:-----|:---------|:---|:-------|
|  1 | ($ millions)                              | 2024     |        | 2023 |          |    |        |
|  2 | Net cash provided by operating activities | $        | 19,846 |      |          | $  | 16,848 |
|  3 | Net cash used in investing activities     | (3,504)  |        |      | (3,500)  |    |        |
|  4 | Net cash used in financing activities     | (14,855) |        |      | (12,146) |    |        |
|  5 | Adjusted Free Cash Flow                   | 16,946   |        |      | 14,011   |    |        |
|  6 | Adjusted Free Cash Flow Productivity      | 105      | %      |      | 95       | %  |        |

Operating Cash Flow

Operating cash flow was $19.8 billion in 2024, an 18% increase versus the prior year. Net earnings, adjusted for certain non-cash items (depreciation and amortization, intangible asset impairment, share-based compensation expense, deferred income taxes and gain on sale of assets) generated approximately $19.3 billion of operating cash flow. Working capital and other impacts generated $533 million of cash in the period primarily driven by an increase in trade payables and other non-cash add-backs, partially offset by an increase in accounts receivable and a decrease in post-retirement benefit accruals. The increase in trade payables is primarily from increased marketing support activities and extended payment terms with suppliers, partially offset by lower supply chain payables due to a decrease in commodity costs. Other non-cash add-backs include the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria. The increase in Accounts Receivable is primarily from sales growth. The decrease in post-retirement benefit accruals is due to payments and the net periodic credit from other retiree benefits. Days sales outstanding increased by two days. Days inventory on hand increased by two days.
Adjusted Free Cash Flow. We view adjusted free cash flow as an important non-GAAP measure because it is a factor impacting the amount of cash available for dividends, share repurchases, acquisitions and other discretionary investments. It is defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the U.S. Tax Act. Adjusted free cash flow is one of the measures used to evaluate senior management and determine their at-risk compensation.
Adjusted free cash flow was $16.9 billion in 2024, an increase of 21% versus the prior year. The increase was primarily driven by the increase in operating cash flows as discussed above. Adjusted free cash flow productivity, defined as the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105% in 2024.

Investing Cash Flow

Net investing activities used $3.5 billion of cash in 2024, primarily due to capital expenditures and the settlement of net investment hedges.

Financing Cash Flow

Net financing activities used $14.9 billion of cash in 2024, mainly due to dividends to shareholders, treasury stock purchases and a net debt decrease, partially offset by the impact of stock options and other.

Liquidity

At June 30, 2024, our current liabilities exceeded current assets by $8.9 billion, largely due to accounts payable, short-term borrowings and debt due within one year. We anticipate being able to support our short-term liquidity and operating needs largely through cash generated from operations. The Company regularly assesses its cash needs and the available sources to fund these needs. As of June 30, 2024, the Company had $6.1 billion of cash and cash equivalents related to foreign subsidiaries, primarily in various European and Asian countries. We did not have material cash and cash equivalents related to any country subject to exchange controls that significantly restrict our ability to access or repatriate the funds. Under current law, we do not expect restrictions or taxes on repatriation of cash held outside of the U.S. to have a material effect on our overall liquidity, financial condition or the results of operations for the foreseeable future.
We utilize short- and long-term debt to fund discretionary items, such as acquisitions and share repurchases. We have strong short- and long-term debt ratings, which have enabled and should continue to enable us to refinance our debt as it becomes due in commercial paper and bond markets. In addition, we have agreements with a diverse group of financial institutions that, if needed, should provide sufficient funding to meet short-term financing requirements.
On June 30, 2024, our short-term credit ratings were P-1 (Moody's) and A-1+ (Standard & Poor's), while our long-term credit ratings were Aa3 (Moody's) and AA- (Standard & Poor's), all with a stable outlook.
We maintain bank credit facilities to support our ongoing commercial paper program. The current facility is an $8.0 billion facility split between a $3.2 billion five-year facility and a $4.8 billion 364-day facility, which expire in November 2028 and October 2024, respectively. Both facilities can be extended for certain periods of time as specified in the terms of the credit agreement. These facilities are currently undrawn and we anticipate that they will remain undrawn. These credit facilities do not

PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 25:
The Procter & Gamble Company 25

Cash Flow Analysis

($ millions)	2024		2023

Net cash provided by operating activities	$	19,846 			$	16,848

Net cash used in investing activities	(3,504)			(3,500)

Net cash used in financing activities	(14,855)			(12,146)

Adjusted Free Cash Flow	16,946 			14,011

Adjusted Free Cash Flow Productivity	105 	%		95 	%

Operating Cash Flow

Operating cash flow was $19.8 billion in 2024, an 18% increase versus the prior year. Net earnings, adjusted for certain non-cash items (depreciation and amortization, intangible asset impairment, share-based compensation expense, deferred income taxes and gain on sale of assets) generated approximately $19.3 billion of operating cash flow. Working capital and other impacts generated $533 million of cash in the period primarily driven by an increase in trade payables and other non-cash add-backs, partially offset by an increase in accounts receivable and a decrease in post-retirement benefit accruals. The increase in trade payables is primarily from increased marketing support activities and extended payment terms with suppliers, partially offset by lower supply chain payables due to a decrease in commodity costs. Other non-cash add-backs include the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria. The increase in Accounts Receivable is primarily from sales growth. The decrease in post-retirement benefit accruals is due to payments and the net periodic credit from other retiree benefits. Days sales outstanding increased by two days. Days inventory on hand increased by two days.
Adjusted Free Cash Flow. We view adjusted free cash flow as an important non-GAAP measure because it is a factor impacting the amount of cash available for dividends, share repurchases, acquisitions and other discretionary investments. It is defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the U.S. Tax Act. Adjusted free cash flow is one of the measures used to evaluate senior management and determine their at-risk compensation.
Adjusted free cash flow was $16.9 billion in 2024, an increase of 21% versus the prior year. The increase was primarily driven by the increase in operating cash flows as discussed above. Adjusted free cash flow productivity, defined as the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105% in 2024.

Investing Cash Flow

Net investing activities used $3.5 billion of cash in 2024, primarily due to capital expenditures and the settlement of net investment hedges.

Financing Cash Flow

Net financing activities used $14.9 billion of cash in 2024, mainly due to dividends to shareholders, treasury stock purchases and a net debt decrease, partially offset by the impact of stock options and other.

Liquidity

At June 30, 2024, our current liabilities exceeded current assets by $8.9 billion, largely due to accounts payable, short-term borrowings and debt due within one year. We anticipate being able to support our short-term liquidity and operating needs largely through cash generated from operations. The Company regularly assesses its cash needs and the available sources to fund these needs. As of June 30, 2024, the Company had $6.1 billion of cash and cash equivalents related to foreign subsidiaries, primarily in various European and Asian countries. We did not have material cash and cash equivalents related to any country subject to exchange controls that significantly restrict our ability to access or repatriate the funds. Under current law, we do not expect restrictions or taxes on repatriation of cash held outside of the U.S. to have a material effect on our overall liquidity, financial condition or the results of operations for the foreseeable future.
We utilize short- and long-term debt to fund discretionary items, such as acquisitions and share repurchases. We have strong short- and long-term debt ratings, which have enabled and should continue to enable us to refinance our debt as it becomes due in commercial paper and bond markets. In addition, we have agreements with a diverse group of financial institutions that, if needed, should provide sufficient funding to meet short-term financing requirements.
On June 30, 2024, our short-term credit ratings were P-1 (Moody's) and A-1+ (Standard & Poor's), while our long-term credit ratings were Aa3 (Moody's) and AA- (Standard & Poor's), all with a stable outlook.
We maintain bank credit facilities to support our ongoing commercial paper program. The current facility is an $8.0 billion facility split between a $3.2 billion five-year facility and a $4.8 billion 364-day facility, which expire in November 2028 and October 2024, respectively. Both facilities can be extended for certain periods of time as specified in the terms of the credit agreement. These facilities are currently undrawn and we anticipate that they will remain undrawn. These credit facilities do not