Procter & Gamble Company (PG)

Inventory turnover

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	65,132,000	63,573,000	63,587,000	63,815,000	63,344,000	62,702,000	62,236,000	62,028,000	61,718,000	61,350,000	60,450,000	59,100,000	57,804,000	56,515,000	56,049,000	55,494,000	55,088,000	63,303,000	62,680,000	62,526,000
Inventory	US$ in thousands	7,016,000	7,077,000	7,151,000	7,117,000	7,073,000	7,483,000	7,541,000	7,590,000	6,924,000	7,101,000	6,673,000	6,307,000	5,983,000	6,002,000	5,957,000	5,707,000	5,498,000	5,330,000	5,521,000	5,465,000
Inventory turnover		9.28	8.98	8.89	8.97	8.96	8.38	8.25	8.17	8.91	8.64	9.06	9.37	9.66	9.42	9.41	9.72	10.02	11.88	11.35	11.44

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $65,132,000K ÷ $7,016,000K
= 9.28

Procter & Gamble Company's inventory turnover ratio has shown a consistent trend over the past few quarters. The inventory turnover ratios range from 8.17 to 11.88, with an average turnover of approximately 9.52. This implies that, on average, P&G sells and replaces its inventory approximately 9.52 times a year.

The inventory turnover ratio indicates the efficiency with which the company manages its inventory levels. A higher ratio suggests that P&G is effectively managing its inventory levels, ensuring that stock is not sitting idle for long periods. The slight fluctuations in the ratio over the quarters suggest that P&G has been successful in consistently optimizing its inventory management practices.

Overall, the inventory turnover ratios indicate that Procter & Gamble has a relatively healthy inventory turnover rate, reflecting efficient inventory management practices.