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Personal Product Industry Key Financial Data 2023

The following analysis considers the 74 major publicly listed personal product companies with a market capitalisation above $1 billion. The numbers in the tables are expressed in millions of dollars except for percentages and ratios.

Number 74
Expected Growth Rate 4,36%
Financials 2023
Total Revenues  $ 480.694,00
Operating Income   $   80.103,00
Free Cash Flows Firm  $   52.951,30
Effective Tax Rate  23,20%
10Y Median Operating Ratios
 Revenues Growth  2,0%
 Gross Margin  52,3%
Operating Margin 16,8%
Reinvestment Margin 3,3%
ROIC 15,7%
Sales to IC 1,18
Solvency Ratios
Debt to EV 4,5%
Debt to Equity 17,5%
Interest Coverage  11,96
Rating  Aaa/AAA
Spread 0,69%
Beta
Unlevered Beta 2 y 0,32
Unlevered Beta 5 y 0,28

In 2023 the personal product industry generated $480.7 billion in revenues, an increase of 0.39% from the $478.8 billion of 2022.

Over the past 10 years, the median growth rate in revenues has been 2%.

Year Total Revenues
2023 480.694
2022 478.832
2021 461.960
2020 439.317
2019 408.505
2018 400.630
2017 392.509
2016 352.523
2015 354.450
2014 351.665
2013 378.099
2012 362.079

Overall, the personal product industry registered an operating income of $80.1 billion in 2023. Regarding profitability, the 10-year median gross margin is 52.3%, while the 10-year median operating margin is equal to 16.8%.

Year Operating Income 
2023 80.103
2022 76.985
2021 79.782
2020 73.844
2019 70.196
2018 68.055
2017 67.517
2016 59.498
2015 57.583
2014 57.989
2013 59.882
2012 56.937

The total free cash flows to the firm for the personal product industry instead, were equal to $52.9 billion in 2023.

Moving on to efficiency ratios, the personal product industry’s 10-year median return on invested capital (ROIC) is 15.7%, while the 10-year median sales to invested capital is equal to 1.18.

The 10-year median reinvestment margin for the personal product industry – expressed as total reinvestments in net capital expenditures, acquisitions, and R&D divided by total revenues – is 3.3%.

Multiplying the reinvestment margin, which shows how much personal product companies have invested over the past years, by the sales to invested capital ratio, showing how efficiently personal product companies have invested, is it possible to calculate the expected growth rate in revenues for the personal product industry, equal to 4.36%.

Check out this post for a detailed explanation of how to calculate future revenue growth rates.

Median Expected Growth Rate
4,36%
Year Reinvestment Margin Sales To IC
2023 1,38% 1,11
2022 1,66% 1,10
2021 -1,97% 1,11
2020 1,82% 1,15
2019 3,77% 1,19
2018 3,13% 1,16
2017 9,47% 1,48
2016 4,92% 1,34
2015 3,27% 1,31
2014 3,33% 1,32
2013 3,74% 1,48

As regards solvency ratios, the debt-to-enterprise value ratio for the personal product industry is 4.5%, while the debt-to-equity ratio is 17.5%.

The interest coverage ratio instead, showing how much the operating income covers interest expenses, is equal to 11.96, which would translate into a credit rating for the personal product industry equal to Aaa/AAA based on Moody’s rating standards.

Finally, the unlevered beta of the personal product industry – which is the beta depurated by the debt leverage – has been 0.32, for the past 2 years, and 0.28, for the past 5 years.

However, the beta is only one of the required inputs to calculate the appropriate discount rate for company valuation, check out this page where you can find the equity risk premium for different markets needed to calculate the required cost of equity.