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Compare Procter & Gamble and Coca-Cola on leverage.

ok
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comparison
5/5
evidence
5/5
honesty
4/5
faithfulness
5.0/5
elapsed
1.1s

Report

Leverage

Both PG and KO carry substantial debt loads typical of large-cap consumer staples, but KO's absolute debt stack is meaningfully larger relative to its equity base. For PG in FY2025, total debt sums to roughly $34.5 billion (long-term noncurrent $24,995M [PG:Q3] + current maturities $5,377M [PG:Q7] + commercial paper $4,108M [PG:Q11]), set against equity of $52,284M [PG:Q15] and cash of $9,556M [PG:Q19], implying a gross debt-to-equity ratio of approximately 0.66x and net debt of roughly $24.9 billion. KO in FY2025 carries long-term debt and capital lease obligations of $42,119M [KO:Q3] plus current maturities of $1,822M [KO:Q7] and commercial paper of $1,495M [KO:Q11], totaling roughly $45.4 billion in gross debt against equity of only $32,169M [KO:Q15] and cash of $10,270M [KO:Q19], yielding a gross debt-to-equity ratio of approximately 1.41x and net debt of roughly $35.1 billion. KO's leverage ratio is therefore roughly twice that of PG on a gross debt-to-equity basis, though both companies have been managing their debt stacks in a relatively stable range over the FY2022–FY2025 period. PG's long-term noncurrent debt has drifted modestly upward from $22,848M [PG:Q0] in FY2022 to $24,995M [PG:Q3] in FY2025, while KO's noncurrent long-term obligations rose more sharply from $36,377M [KO:Q0] in FY2022 to $42,119M [KO:Q3] by FY2025, partly reflecting the tag change to include capital lease obligations in later filings.

PG: PG maintains a moderate leverage profile, with FY2025 gross debt of approximately $34.5 billion (noncurrent long-term debt $24,995M [PG:Q3], current maturities $5,377M [PG:Q7], and commercial paper $4,108M [PG:Q11]) against a solid equity cushion of $52,284M [PG:Q15]. Net debt of roughly $24.9 billion after deducting $9,556M in cash [PG:Q19] translates to a gross debt-to-equity ratio near 0.66x, a manageable level for a company of PG's cash-generative profile. The debt stack has grown modestly since FY2022 but equity has expanded in parallel, keeping leverage broadly stable.

KO: KO operates with notably higher leverage than PG, with FY2025 gross debt of approximately $45.4 billion (noncurrent long-term debt and capital leases $42,119M [KO:Q3], current maturities $1,822M [KO:Q7], and commercial paper $1,495M [KO:Q11]) against equity of $32,169M [KO:Q15], implying a gross debt-to-equity ratio of roughly 1.41x. Cash of $10,270M [KO:Q19] partially offsets this, leaving net debt near $35.1 billion. While KO's equity improved meaningfully in FY2025 from $24,856M [KO:Q14] in FY2024, the absolute debt load has also grown since FY2022, keeping KO in a more leveraged position than its peer PG.


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Citations (40)

quant PG FY2022
us-gaap:LongTermDebtNoncurrent = $22.85B
quant PG FY2023
us-gaap:LongTermDebtNoncurrent = $24.38B
quant PG FY2024
us-gaap:LongTermDebtNoncurrent = $25.27B
quant PG FY2025
us-gaap:LongTermDebtNoncurrent = $25.00B
quant PG FY2022
us-gaap:LongTermDebtCurrent = $3.65B
quant PG FY2023
us-gaap:LongTermDebtCurrent = $3.95B
quant PG FY2024
us-gaap:LongTermDebtCurrent = $3.84B
quant PG FY2025
us-gaap:LongTermDebtCurrent = $5.38B
quant PG FY2022
us-gaap:CommercialPaper = $4.80B
quant PG FY2023
us-gaap:CommercialPaper = $6.24B
quant PG FY2024
us-gaap:CommercialPaper = $3.33B
quant PG FY2025
us-gaap:CommercialPaper = $4.11B
quant PG FY2022
us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest = $46.85B
quant PG FY2023
us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest = $47.06B
quant PG FY2024
us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest = $50.56B
quant PG FY2025
us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest = $52.28B
quant PG FY2022
us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents = $7.21B
quant PG FY2023
us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents = $8.25B
quant PG FY2024
us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents = $9.48B
quant PG FY2025
us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents = $9.56B
quant KO FY2022
us-gaap:LongTermDebtNoncurrent = $36.38B
quant KO FY2023
us-gaap:LongTermDebtNoncurrent = $35.55B
quant KO FY2024
us-gaap:LongTermDebtAndCapitalLeaseObligations = $42.38B
quant KO FY2025
us-gaap:LongTermDebtAndCapitalLeaseObligations = $42.12B
quant KO FY2022
us-gaap:LongTermDebtCurrent = $399.00M
quant KO FY2023
us-gaap:LongTermDebtCurrent = $1.96B
quant KO FY2024
us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent = $648.00M
quant KO FY2025
us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent = $1.82B
quant KO FY2022
us-gaap:ShortTermBorrowings = $2.37B
quant KO FY2023
us-gaap:CommercialPaper = $4.21B
quant KO FY2024
us-gaap:CommercialPaper = $1.14B
quant KO FY2025
us-gaap:CommercialPaper = $1.50B
quant KO FY2022
us-gaap:StockholdersEquity = $24.11B
quant KO FY2023
us-gaap:StockholdersEquity = $25.94B
quant KO FY2024
us-gaap:StockholdersEquity = $24.86B
quant KO FY2025
us-gaap:StockholdersEquity = $32.17B
quant KO FY2022
us-gaap:CashAndCashEquivalentsAtCarryingValue = $9.52B
quant KO FY2023
us-gaap:CashAndCashEquivalentsAtCarryingValue = $9.37B
quant KO FY2024
us-gaap:CashAndCashEquivalentsAtCarryingValue = $10.83B
quant KO FY2025
us-gaap:CashAndCashEquivalentsAtCarryingValue = $10.27B