Detailed financial statements for Diageo plc (DEO): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Diageo plc, operating through its various subsidiaries, stands as a major global player in the production, marketing, and distribution of alcoholic beverages. The company boasts an extensive product range, featuring a wide selection of spirits such as Scotch, diverse whiskies (including Canadian and American varieties), gin, vodka, rum, tequila, cachaça, brandy, raki, and liqueurs.
Analysis Summary
Diageo plc reported revenue of $19.60B in the most recent fiscal year, growing at a 5-year CAGR of 9.0%. Net income reached $1.73B, with a -8.2% 5-year CAGR.
Trailing-twelve-month margins: gross margin 59.5%, operating margin 28.4%, net margin 8.9%. Free cash flow grew at 1.0% CAGR over 5 years.
At $97.70 (closing price, November 4, 2026), DEO trades at a P/E of 31.40 and an ROE of 15.52%. Market capitalisation stands at $54.3B, placing it among large-cap names.
Balance sheet quality for DEO: debt-to-equity ratio of 2.03, current ratio of 1.60 over the last 12 months, net debt of $20.18B at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $3.19B represents 184% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $12.05B | $12.16B | $12.87B | $11.75B | $12.73B | $16.96B | $16.23B | $20.27B | $20.25B | $19.60B |
| Cost of Revenue | $4.68B | $4.63B | $4.87B | $4.65B | $5.04B | $5.97B | $6.54B | $8.07B | $8.07B | $7.95B |
| Gross Profit | $7.37B | $7.53B | $8.00B | $7.10B | $7.70B | $9.48B | $9.68B | $12.20B | $12.17B | $11.66B |
| Research & Development | $32.3M | $36.9M | $35.7M | $34.3M | $38.9M | $47.1M | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $3.70B | $1.89B | $4.01B | $1.84B | $2.16B | $5.11B | $2.89B | $3.69B | $3.66B | $6.10B |
| Operating Expenses | $3.73B | $3.84B | $4.05B | $4.96B | $3.86B | $5.16B | $5.30B | $6.20B | $7.84B | $6.10B |
| Operating Income | $4.63B | $3.90B | $4.04B | $3.51B | $3.73B | $4.88B | $4.38B | $6.00B | $4.33B | $5.56B |
| EBITDA | $3.83B | $4.18B | $4.50B | $5.77B | $4.28B | $6.07B | $6.40B | $7.24B | $6.36B | $6.30B |
| Interest Expense | $444.5M | $416.6M | $488.1M | $662.3M | $452.7M | $632.7M | $885.0M | $1.28B | $1.04B | $1.05B |
| Pre-tax Income | $3.56B | $3.83B | $4.24B | $2.06B | $3.71B | $4.80B | $4.45B | $5.46B | $3.54B | $2.56B |
| Income Tax | $732.0M | $610.1M | $898.0M | $589.0M | $907.0M | $1.16B | $918.1M | $1.29B | $999.0M | $604.8M |
| Net Income | $2.66B | $3.02B | $3.16B | $1.41B | $2.66B | $3.54B | $3.51B | $3.87B | $2.35B | $1.73B |
| EPS | $4.32 | $6.36 | $5.24 | $2.40 | $4.56 | $6.12 | $6.20 | $6.92 | $4.24 | $3.12 |
| EPS (Diluted) | $4.32 | $4.96 | $5.20 | $2.40 | $4.40 | $6.12 | $6.20 | $6.92 | $4.24 | $3.12 |
| Shares Outstanding (Diluted) | 630.8 M | 623.8 M | 607.0 M | 588.5 M | 586.2 M | 581.2 M | 567.8 M | 559.8 M | 557.0 M | 557.8 M |
Income Statement (Quarterly)
| Year | 2024-Q4 | 2025-Q2 | 2025-Q4 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $10.90B | $9.42B | $10.41B | $9.18B |
| Gross Profit | $6.74B | $5.48B | $6.35B | $5.30B |
| Operating Income | $3.15B | $2.17B | $3.24B | $2.31B |
| EBITDA | $3.38B | $1.55B | $3.72B | $2.65B |
| Net Income | $1.94B | $422.6M | $1.98B | -$258.0M |
| EPS | $3.48 | $0.76 | $3.56 | -$0.44 |
| EPS (Diluted) | $3.48 | $0.76 | $3.56 | -$0.44 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $1.19B | $874.0M | $932.0M | $3.32B | $2.75B | $2.29B | $1.43B | $1.13B | $2.20B | $1.52B |
| Short-term Investments | $24.0M | $25.0M | $127.0M | $75.0M | $121.0M | $251.0M | 0 | 0 | $447.0M | $497.0M |
| Receivables | $2.43B | $2.60B | $2.99B | $2.14B | $2.79B | $2.79B | $2.94B | $3.79B | $3.13B | $3.52B |
| Inventory | $4.79B | $5.01B | $5.47B | $5.77B | $6.04B | $7.09B | $7.62B | $9.72B | $10.66B | $10.53B |
| Total Current Assets | $8.65B | $8.69B | $9.37B | $11.47B | $11.45B | $12.93B | $12.33B | $15.13B | $17.50B | $17.21B |
| Property, Plant & Equipment | $4.01B | $4.09B | $4.46B | $4.93B | $4.85B | $5.85B | $6.11B | $8.51B | $9.53B | $9.20B |
| Goodwill | $2.72B | $2.68B | $2.68B | $1.91B | $1.96B | $2.29B | 0 | 0 | $2.95B | $2.44B |
| Intangible Assets | $9.84B | $9.89B | $9.88B | $9.39B | $8.81B | $9.62B | $11.45B | $14.81B | $11.83B | $10.94B |
| Total Assets | $28.85B | $29.71B | $31.30B | $33.31B | $31.95B | $36.52B | $35.43B | $45.47B | $49.32B | $46.84B |
| Accounts Payable | $1.36B | $1.51B | $1.69B | $1.33B | $2.01B | $884.2M | $5.27B | $6.35B | $3.12B | $6.42B |
| Short-term Debt | $2.49B | $1.83B | $1.96B | $2.00B | $1.86B | $1.85B | $1.69B | $2.88B | $2.93B | $2.57B |
| Total Current Liabilities | $6.66B | $6.36B | $7.00B | $6.50B | $7.14B | $8.44B | $7.57B | $9.87B | $10.71B | $10.73B |
| Long-term Debt | $6.58B | $8.14B | $10.60B | $14.79B | $12.87B | $14.50B | $14.72B | $18.62B | $20.82B | $19.06B |
| Total Liabilities | $16.82B | $18.00B | $21.14B | $24.87B | $23.52B | $27.00B | $26.19B | $33.40B | $36.14B | $33.89B |
| Retained Earnings | $7.65B | $7.83B | $5.91B | $4.34B | $5.06B | $5.39B | $5.20B | $7.53B | $10.27B | $10.50B |
| Total Equity | $10.31B | $9.95B | $8.36B | $6.77B | $6.90B | $7.80B | $7.78B | $10.03B | $11.09B | $10.87B |
| Total Debt | $9.25B | $10.13B | $12.70B | $17.27B | $15.18B | $16.02B | $16.41B | $21.50B | $24.40B | $22.20B |
| Net Debt | $8.04B | $9.23B | $11.64B | $13.87B | $12.31B | $13.48B | $14.98B | $20.37B | $21.75B | $20.18B |
| Working Capital | $1.99B | $2.33B | $2.37B | $4.97B | $4.30B | $4.49B | $4.76B | $5.26B | $6.79B | $6.48B |
Balance Sheet (Quarterly)
| Year | 2024-Q4 | 2025-Q2 | 2025-Q4 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $1.66B | $2.20B | $2.21B | $1.52B |
| Total Assets | $46.95B | $49.32B | $50.20B | $46.84B |
| Total Liabilities | $34.54B | $36.14B | $36.53B | $33.89B |
| Total Equity | $10.28B | $11.09B | $11.58B | $10.87B |
| Total Debt | $21.72B | $24.40B | $24.17B | $22.20B |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $2.66B | $3.02B | $3.16B | $1.45B | $2.80B | $3.34B | $3.54B | $4.17B | $2.54B | $1.73B |
| Depreciation & Amortization | $353.4M | $373.1M | $381.9M | $2.26B | $447.0M | $788.7M | $1.06B | $493.0M | $1.72B | $743.5M |
| Stock-based Compensation | 0 | 0 | $50.0M | $3.0M | $50.0M | $65.3M | 0 | 0 | 0 | 0 |
| Change in Working Capital | $147.8M | -$162.8M | -$423.0M | -$328.0M | $331.0M | -$179.0M | -$1.12B | -$768.0M | -$77.0M | $75.8M |
| Operating Cash Flow | $3.13B | $3.08B | $3.25B | $2.32B | $3.65B | $3.94B | $4.53B | $6.07B | $4.30B | $4.38B |
| Capital Expenditure | -$518.0M | -$584.0M | -$671.0M | -$700.0M | -$626.0M | -$1.10B | -$1.12B | -$1.51B | -$1.61B | -$1.19B |
| Acquisitions | -$83.0M | -$590.0M | $370.0M | -$119.0M | -$474.0M | -$189.0M | -$12.3M | -$6.0M | $24.0M | $280.4M |
| Stock Repurchased | -$40.1M | -$1.51B | -$2.77B | -$1.28B | -$109.0M | -$2.52B | -$1.30B | -$1.67B | 0 | 0 |
| Dividends Paid | -$1.51B | -$1.58B | -$1.62B | -$1.65B | -$1.65B | -$1.72B | -$1.77B | -$2.36B | -$2.30B | -$1.84B |
| Free Cash Flow | $2.61B | $2.50B | $2.58B | $1.62B | $3.03B | $2.84B | $3.42B | $4.55B | $2.69B | $3.19B |
Cash Flow (Quarterly)
| Year | 2024-Q4 | 2025-Q2 | 2025-Q4 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $2.32B | $2.01B | $2.11B | $2.28B |
| Capital Expenditure | -$632.0M | -$993.5M | -$601.9M | -$594.0M |
| Free Cash Flow | $2.58B | $1.01B | $1.51B | $1.68B |
| Dividends Paid | -$1.47B | -$918.0M | -$1.39B | -$449.9M |
| Stock-based Compensation | 0 | 0 | 0 | 0 |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +0.9% | +5.8% | -8.7% | +8.3% | +33.2% | -4.3% | +24.9% | -0.1% | -3.2% | |
| Net Income Growth (YoY) | +13.5% | +4.6% | -55.4% | +88.8% | +33.0% | -0.8% | +10.3% | -39.2% | -26.4% | |
| EPS Growth (YoY) | +47.2% | -17.6% | -54.2% | +90.0% | +34.2% | +1.3% | +11.6% | -38.7% | -26.4% | |
| Shares Change (YoY) | -1.1% | -2.7% | -3.0% | -0.4% | -0.9% | -2.3% | -1.4% | -0.5% | +0.1% | |
| FCF Growth (YoY) | -4.4% | +3.1% | -37.1% | +86.9% | -6.3% | +20.4% | +33.3% | -41.1% | +18.8% | |
| Gross Margin | 61.2% | 61.9% | 62.2% | 60.4% | 60.4% | 55.9% | 59.7% | 60.2% | 60.1% | 59.5% |
| Operating Margin | 38.4% | 32.1% | 31.4% | 29.9% | 29.3% | 28.7% | 27.0% | 29.6% | 21.4% | 28.4% |
| EBITDA Margin | 31.8% | 34.4% | 35.0% | 49.1% | 33.6% | 35.8% | 39.4% | 35.7% | 31.4% | 32.1% |
| Net Margin | 22.1% | 24.8% | 24.6% | 12.0% | 20.9% | 20.9% | 21.6% | 19.1% | 11.6% | 8.8% |
| FCF Margin | 21.7% | 20.6% | 20.0% | 13.8% | 23.8% | 16.7% | 21.1% | 22.5% | 13.3% | 16.3% |
| Effective Tax Rate | 20.6% | 15.9% | 21.2% | 28.5% | 24.5% | 24.1% | 20.6% | 23.7% | 28.2% | 23.6% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $4.14 | $4.01 | $4.25 | $2.75 | $5.17 | $4.88 | $6.02 | $8.14 | $4.82 | $5.72 |
| Dividends Per Share | $2.40 | $2.53 | $2.67 | $2.80 | $2.81 | $2.96 | $3.12 | $4.21 | $4.13 | $3.30 |
| Shares Outstanding (Basic) | 628.0 M | 621.0 M | 604.5 M | 586.5 M | 584.2 M | 579.5 M | 566.0 M | 558.5 M | 555.5 M | 556.0 M |
What to look at in Consumer Defensive companies
- Gross margin (stable 5y) (Stable >=35%) — Brand pricing power — Coca-Cola does not drop margins.
- ROE / ROIC stable (ROE >=15% stable) — Defensive businesses have high consistent ROEs — Lynch's stalwarts.
- FCF / Net Income (>=90%) — Earnings to cash conversion — best names exceed 95%.
- Dividend growth 10y (>=6%/year) — Dividend Aristocrats raise 25+ years — moat signal.
- Payout Ratio (<75%) — >80% = dividend at risk. <60% comfortable.
- Net Debt / EBITDA (<2.5x) — Defensive with high debt loses its essence.
Profitability
| Return on Equity | 15.52% |
| Return on Invested Capital | 10.93% |
| Return on Assets | 3.71% |
| Gross Margin | 59.48% |
| Operating Margin | 28.38% |
| Net Margin | 8.91% |
Financial Health
| Debt / Equity | 2.03 |
| Current Ratio | 1.60 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 2.08 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 21.29 | 17.15 | 25.81 | 45.15 | 30.40 | 23.37 | 22.03 | 18.19 | 23.78 | 25.76 |
| P/B | 5.60 | 6.81 | 9.78 | 9.39 | 11.74 | 10.63 | 9.94 | 7.01 | 5.05 | 4.11 |
| P/S | 4.79 | 5.57 | 6.35 | 5.41 | 6.36 | 4.89 | 4.76 | 3.47 | 2.77 | 2.28 |
| Gross Margin | 61.2% | 61.9% | 62.2% | 60.4% | 60.4% | 55.9% | 59.7% | 60.2% | 60.1% | 59.5% |
| Operating Margin | 38.4% | 32.1% | 31.4% | 29.9% | 29.3% | 28.7% | 27.0% | 29.6% | 21.4% | 28.4% |
| Net Margin | 22.1% | 24.8% | 24.6% | 12.0% | 20.9% | 20.9% | 21.6% | 19.1% | 11.6% | 8.8% |
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Explore sector: Consumer Defensive · Beverages - Alcoholic
More sections of DEO: Overview · Valuation · Estimates · Technical · Ownership
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