Procter & Gamble Company (PG)
Inventory turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 41,164,000 | 40,848,000 | 42,760,000 | 42,157,000 | 37,108,000 |
| Inventory | US$ in thousands | 7,551,000 | 7,016,000 | 7,073,000 | 6,924,000 | 5,983,000 |
| Inventory turnover | 5.45 | 5.82 | 6.05 | 6.09 | 6.20 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $41,164,000K ÷ $7,551,000K
= 5.45
The inventory turnover ratio for Procter & Gamble Company has demonstrated a gradual decline over the period from June 30, 2021, to June 30, 2025. Specifically, at the end of fiscal year 2021, the ratio stood at 6.20 times, indicating that inventory was sold and replaced approximately six times throughout the year. By the subsequent year, the ratio experienced a slight decrease to 6.09, suggesting a marginally slower rate of inventory turnover. This downward trend persisted into the following fiscal year, with the ratio further decreasing to 6.05, reflecting continued slight reduction in inventory activity relative to sales.
The trend continued into fiscal year 2024, with the inventory turnover ratio declining to 5.82. This indicates a further deceleration in how frequently inventory is cycled through within the year. Most recently, as of June 30, 2025, the ratio decreased to 5.45, marking an ongoing trend of modest reduction in inventory turnover.
Overall, the consistent decline in inventory turnover over this four-year span may suggest a number of potential underlying factors, such as increased inventory levels relative to sales, changes in inventory management strategies, shifts in sales patterns, or potential shifts in market demand. Despite this reduction, the ratios remain relatively stable and within a reasonable range for a multinational consumer goods company, reflecting a relatively efficient inventory management system, albeit with a slight trend toward slower inventory movement.