Procter & Gamble Company (PG)
Inventory turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 40,881,000 | 41,042,000 | 40,768,000 | 40,848,000 | 41,113,000 | 41,662,000 | 42,415,000 | 42,760,000 | 42,949,000 | 42,871,000 | 42,638,000 | 42,157,000 | 41,146,000 | 39,742,000 | 38,331,000 | 37,108,000 | 36,259,000 | 36,053,000 | 35,669,000 | 35,250,000 |
| Inventory | US$ in thousands | 7,400,000 | 7,020,000 | 7,287,000 | 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 |
| Inventory turnover | 5.52 | 5.85 | 5.59 | 5.82 | 5.81 | 5.83 | 5.96 | 6.05 | 5.74 | 5.69 | 5.62 | 6.09 | 5.79 | 5.96 | 6.08 | 6.20 | 6.04 | 6.05 | 6.25 | 6.41 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $40,881,000K ÷ $7,400,000K
= 5.52
The inventory turnover ratios for Procter & Gamble over the analyzed period reveal a generally consistent efficiency in inventory management. Starting at 6.41 times as of June 30, 2020, the ratio exhibited a slight decline through the ensuing quarters, reaching a low of approximately 5.62 times on September 30, 2022. Subsequently, the turnover rate saw modest fluctuations, peaking again at about 6.05 times at the end of June 2023, followed by minor decreases and increases, ultimately settling at approximately 5.52 times as of March 31, 2025.
This pattern indicates that P&G tends to turn over its inventory roughly between 5.5 and 6.4 times annually, which reflects a stable inventory management strategy. The slight downward trend observed in late 2022 and into 2023 may suggest periods of increased inventory holdings or slower sales, but the ratios remain within a relatively narrow band. The data overall indicates that P&G maintains a disciplined approach to inventory levels, balancing inventory turnover with sales performance to optimize liquidity and efficiency.
In summary, the company's inventory turnover ratio has demonstrated stability with minor cyclical fluctuations over the recent years, suggesting effective inventory control aligned with its operational and market conditions.
See also:
Procter & Gamble Company Inventory Turnover (Quarterly Data)