Cash conversion efficiency remains high, evidenced by an OCF/NI ratio of 218.65 in 2026Q3, despite FCF margins fluctuating between 14.3% and 24.2% over the last ten quarters.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | 19.41B | 17.82B | 19.85B | 16.85B | 16.72B | 18.37B | 17.4B | 15.24B | 14.87B | 12.75B | 15.44B | 14.61B | 13.96B | 14.87B | 13.28B | 13.33B | 16.07B | 14.92B | 15.01B | 13.44B | 11.38B | 8.68B | 9.36B | 8.7B | 7.74B | 5.8B | 4.67B | 5.54B | 4.88B | 5.88B | 4.16B |
| Operating CF Margin % | - | 21.14% | 23.62% | 20.54% | 20.86% | 24.13% | 24.53% | 22.52% | 22.25% | 19.6% | 23.64% | 20.65% | 18.76% | 18.56% | 16.2% | 16.44% | 20.72% | 19.45% | 18.36% | 17.57% | 16.67% | 15.3% | 18.21% | 20.06% | 19.24% | 14.79% | 11.7% | 14.54% | 13.15% | 16.45% | 11.78% |
| Operating CF Growth % | 24.57% | -10.22% | 17.79% | 0.75% | -8.97% | 5.56% | 14.18% | 2.52% | 16.58% | -17.38% | 5.66% | 4.66% | -6.15% | 11.96% | -0.35% | -17.06% | 7.73% | -0.59% | 11.71% | 18.11% | 31.06% | -7.3% | 7.61% | 12.37% | 33.39% | 24.15% | -15.67% | 13.49% | -16.95% | 41.46% | 16.54% |
| Net Income | 12.72B | 16.07B | 14.88B | 14.74B | 14.79B | 14.35B | 13.1B | 3.97B | 9.86B | 15.33B | 10.6B | 7.14B | 11.79B | 11.4B | 10.9B | 11.93B | 12.74B | 13.44B | 12.07B | 10.34B | 8.68B | 6.92B | 6.48B | 5.19B | 4.35B | 2.92B | 3.54B | 3.76B | 3.78B | 3.42B | 3.05B |
| Depreciation & Amortization | 3.07B | 2.85B | 2.9B | 2.71B | 2.81B | 2.73B | 3.01B | 2.82B | 2.83B | 2.82B | 3.08B | 3.13B | 3.14B | 2.98B | 3.2B | 2.84B | 3.11B | 3.08B | 3.17B | 3.13B | 2.63B | 1.88B | 1.73B | 1.7B | 1.69B | 2.27B | 2.19B | 2.15B | 1.6B | 1.49B | 1.36B |
| Stock-Based Compensation | 506M | 476M | 562M | 545M | 528M | 540M | 558M | 515M | 395M | 366M | 342M | 337M | 360M | 346M | 377M | 414M | 453M | 516M | 555M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 144M | 149M | -244M | -453M | -402M | -258M | -596M | -411M | -1.84B | -601M | -815M | -803M | -44M | -307M | -65M | 128M | 36M | 596M | 1.21B | 253M | -112M | 564M | 415M | 63M | 389M | -102M | 463M | -60M | -101M | -26M | 328M |
| Other Non-Cash Items | -3.46B | 755M | 2.19B | 524M | 144M | 631M | 115M | 7.98B | 601M | -4.71B | 586M | 4.18B | 177M | -231M | -320M | -187M | -2.47B | -2.38B | -284M | 668M | 585M | 524M | 299M | 527M | 467M | 44M | -122M | 130M | -137M | 5M | 289M |
| Working Capital Changes | 2.46B | -2.47B | -436M | -1.22B | -1.15B | 371M | 1.21B | 368M | 3.02B | -443M | 1.64B | 614M | -1.46B | 681M | -816M | -1.79B | 2.21B | -334M | -1.72B | -956M | -409M | -1.22B | 434M | 1.22B | 841M | 669M | -1.4B | -437M | -255M | 1B | -863M |
| Change in Receivables | -62M | 45M | -766M | -307M | -694M | -342M | 634M | -276M | -177M | -322M | 35M | 349M | 87M | -415M | -427M | -426M | -14M | 415M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -261M | -324M | -70M | -119M | -1.25B | -309M | -637M | -239M | -188M | 71M | 116M | 313M | 8M | -225M | 77M | -501M | 86M | 721M | -1.05B | -389M | 383M | -644M | 56M | -56M | 159M | -67M | -176M | -96M | -229M | -71M | 202M |
| Change in Payables | 1.32B | -542M | 1.81B | 313M | 1.43B | 1.39B | 1.92B | 1.86B | 1.39B | -149M | 1.28B | 928M | 1M | 1.25B | -22M | 358M | 2.45B | -742M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -4.49B | -3.82B | -3.5B | -3.5B | -4.42B | -2.83B | 3.04B | -3.49B | -3.51B | -6.68B | -5.58B | -2.89B | -4.11B | -6.29B | -1.09B | -3.48B | -597M | -2.35B | -2.55B | -2.48B | -730M | -2.34B | -10.14B | -1.51B | -6.83B | -1.84B | -5.34B | -2.17B | -5.21B | -2.07B | -2.47B |
| Capital Expenditures | -4.38B | -3.77B | -3.32B | -3.06B | -3.16B | -2.79B | -3.07B | -3.35B | -3.72B | -3.38B | -3.31B | -3.74B | -3.85B | -4.01B | -3.96B | -3.31B | -3.07B | -3.24B | -3.05B | -2.94B | -2.67B | -2.18B | -2.02B | -1.48B | -1.68B | -2.49B | -3.02B | -2.83B | -2.56B | -2.13B | -2.18B |
| CapEx % of Revenue | 5.05% | 4.48% | 3.95% | 3.73% | 3.94% | 3.66% | 4.33% | 4.95% | 5.56% | 5.2% | 5.08% | 5.28% | 5.17% | 5% | 4.83% | 4.08% | 3.95% | 4.22% | 3.73% | 3.85% | 3.91% | 3.84% | 3.94% | 3.42% | 4.17% | 6.33% | 7.55% | 7.42% | 6.89% | 5.95% | 6.18% |
| Acquisitions | -85M | -11M | -21M | -765M | -1.38B | -34M | -58M | -3.94B | -109M | -491M | -329M | -1.04B | -24M | -1.15B | -134M | -474M | -425M | -368M | -381M | -492M | 171M | -572M | -7.48B | -61M | -5.47B | -138M | -2.97B | -137M | -3.27B | -150M | -358M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -24M | -34M | -161M | 327M | 110M | 42M | 30M | 394M | 269M | 571M | -564M | 4.5B | 570M | 584M | 2.89B | 225M | 3.07B | 1.09B | 928M | 281M | 882M | 517M | 230M | 82M | 227M | 650M | 419M | 297M | 555M | 370M | 44M |
| Cash from Financing | -11.77B | -14.04B | -14.86B | -12.15B | -14.88B | -21.53B | -8.37B | -9.99B | -14.38B | -8.57B | -9.21B | -13.02B | -7.28B | -7.07B | -10.41B | -10.12B | -17.31B | -10.81B | -14.84B | -12.48B | -10.58B | -4.13B | -361M | -5.09B | 197M | -3.01B | -196M | -2.61B | -380M | -3.51B | -1.58B |
| Debt Issued (Net) | 1.62B | 630M | -2.44B | 2.94B | 1.89B | -3.9B | 4.85B | -817M | -1.24B | 1.4B | 1.28B | -3.95B | 3.54B | 1.99B | -1.98B | 1.48B | -6.51B | -81M | -2.01B | -4.19B | 8.64B | 3.11B | 5.69B | -1.88B | 2.62B | 38M | 3.03B | 1.34B | 2.85B | -660M | -38M |
| Equity Issued (Net) | -4.23B | -4.79B | -5.01B | -7.35B | -10B | -11.01B | -7.41B | -5B | -7B | -5.2B | -5.73B | -4.6B | -6B | -5.99B | -4.02B | -7.04B | -6B | -6.37B | -10.05B | -4.08B | -15.51B | -4.5B | -3.51B | -967M | -331M | -1.11B | -1.43B | -2.32B | -1.77B | -1.52B | -343M |
| Dividends Paid | -10.18B | -9.87B | -9.31B | -9B | -8.77B | -8.26B | -7.79B | -7.5B | -7.31B | -7.24B | -7.44B | -7.29B | -6.91B | -6.52B | -6.14B | -5.77B | -5.46B | -5.04B | -4.66B | -4.21B | -3.7B | -2.73B | -2.54B | -2.25B | -2.1B | -1.94B | -1.8B | -1.63B | -1.46B | -1.33B | -1.2B |
| Share Repurchases | -4.85B | -6.5B | -5.01B | -7.35B | -10B | -11.01B | -7.41B | -5B | -7B | -5.2B | -5.73B | -4.6B | -6B | -5.99B | -4.02B | -7.04B | -6B | -6.37B | -10.05B | -5.58B | -16.83B | -5.03B | -4.07B | -1.24B | -568M | -1.25B | -1.77B | -2.53B | -1.93B | -1.65B | -432M |
| Other Financing | 1.02B | -1M | 1.91B | 1.27B | 2B | 1.64B | 1.98B | 3.32B | 1.18B | 2.47B | 2.67B | 2.83B | 2.09B | 3.45B | 1.73B | 1.2B | 662M | 681M | 1.87B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 3.19B | 74M | 1.24B | 1.03B | -3.07B | -5.89B | 11.94B | 1.67B | -3B | -1.53B | 266M | -1.71B | 2.62B | 1.51B | 1.67B | -111M | -1.9B | 1.47B | -2.04B | -1.34B | 304M | 2.16B | -1.2B | 2.48B | 1.12B | 891M | -879M | 745M | -801M | 276M | 46M |
| Free Cash Flow | 15.03B | 14.04B | 16.52B | 13.79B | 13.57B | 15.58B | 14.33B | 11.89B | 11.15B | 9.37B | 12.12B | 10.87B | 10.11B | 10.87B | 9.32B | 10.02B | 13.06B | 11.68B | 11.96B | 10.49B | 8.71B | 6.5B | 7.34B | 7.22B | 6.06B | 3.32B | 1.66B | 2.72B | 2.33B | 3.75B | 1.98B |
| FCF Margin % | 17.33% | 16.66% | 19.66% | 16.81% | 16.92% | 20.47% | 20.2% | 17.57% | 16.68% | 14.4% | 18.56% | 15.37% | 13.59% | 13.56% | 11.37% | 12.36% | 16.84% | 15.23% | 14.63% | 13.72% | 12.76% | 11.45% | 14.27% | 16.64% | 15.07% | 8.45% | 4.15% | 7.12% | 6.26% | 10.49% | 5.61% |
| FCF Growth % | 0.02% | -15.01% | 19.86% | 1.61% | -12.94% | 8.75% | 20.47% | 6.68% | 19.01% | -22.7% | 11.49% | 7.54% | -6.95% | 16.58% | -7.02% | -23.27% | 11.84% | -2.35% | 14.03% | 20.46% | 34.01% | -11.45% | 1.66% | 19.05% | 82.73% | 100.24% | -38.99% | 16.77% | -38.02% | 89.64% | 39.17% |
| FCF per Share | 6.22 | 5.72 | 6.68 | 5.55 | 5.34 | 5.99 | 5.46 | 4.68 | 4.20 | 3.42 | 4.26 | 3.77 | 3.48 | 3.71 | 3.17 | 3.34 | 4.22 | 3.70 | 3.61 | 3.09 | 2.65 | 2.37 | 2.63 | 2.58 | 2.16 | 1.18 | 0.61 | 0.99 | 0.75 | 1.25 | 0.66 |
| FCF Conversion (FCF/Net Income) | 1.18x | 1.12x | 1.33x | 1.15x | 1.13x | 1.28x | 1.34x | 3.91x | 1.52x | 0.83x | 1.47x | 2.08x | 1.20x | 1.31x | 1.24x | 1.13x | 1.26x | 1.31x | 1.24x | 1.30x | 1.31x | 1.25x | 1.52x | 1.68x | 1.78x | 1.99x | 1.32x | 1.47x | 1.29x | 1.72x | 1.37x |
| Interest Paid | 0 | 896M | 878M | 721M | 451M | 531M | 434M | 497M | 529M | 518M | 569M | 678M | 686M | 683M | -740M | 806M | 1.18B | 1.23B | 1.37B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 4.55B | 4.36B | 4.28B | 3.82B | 3.82B | 3.55B | 3.06B | 2.83B | 3.71B | 3.73B | 4.56B | 3.32B | 3.78B | -4.35B | 2.99B | 4.17B | 3.25B | 3.5B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Volume and pricing divergence
As reported in recent quarterly filings, the company's OCF/NI ratio reached an extreme 218.65 in 2026Q3, highlighting a significant disconnect between accounting net income and actual cash generation that warrants further investigation into non-operating charges or tax-related distortions impacting the bottom line.
The massive divergence between net income and operating cash flow suggests that GAAP earnings are currently being suppressed by non-cash or non-recurring items. Investors should monitor whether this trend reflects structural accounting noise or a temporary impairment that obscures the underlying cash-generating power of the core business.
Based on the provided financial statements, FCF margins have fluctuated between 14.3% and 24.2% over the last ten quarters, indicating that while the company remains a consistent cash generator, its ability to convert revenue into free cash flow is sensitive to periodic working capital and investment cycles.
The variability in FCF margins appears to be driven by shifts in working capital requirements rather than a fundamental decline in operational efficiency. This suggests that the company's cash trajectory remains robust, though it is subject to the timing of inventory builds and retailer payment cycles.
According to the latest data, the company maintains a disciplined capital intensity, with CapEx/Revenue ratios consistently ranging between 3.8% and 5.4%, suggesting that management is successfully balancing necessary maintenance expenditures with the ongoing need to modernize its global manufacturing and distribution infrastructure.
The relatively stable CapEx profile indicates that the company is not currently engaged in an aggressive, high-risk capacity expansion phase. This level of investment appears sufficient to maintain the company's competitive moat in shelf-space management without placing undue pressure on free cash flow generation.
As evidenced by the quarterly cash flow data, the company consistently returns significant capital to shareholders, with dividend payments totaling $2.5 billion in 2026Q3 alone, alongside opportunistic share repurchases that demonstrate a commitment to managing the equity base despite fluctuating revenue growth trends.
The reliance on dividends and buybacks as primary capital deployment tools suggests that management views the business as a mature cash cow with limited high-return internal reinvestment opportunities. Investors should monitor whether this capital return strategy remains sustainable if volume growth continues to face headwinds.
Quick answers to the most common questions about buying PG stock.
The Procter & Gamble Company (PG) generated $17.82B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Procter & Gamble Company (PG) generated $14.04B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Procter & Gamble Company (PG) spent $3.77B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Procter & Gamble Company (PG) returned $9.87B to shareholders via cash dividends and spent $6.50B on share repurchases. This shows the company's commitment to returning capital to its equity investors.