Procter & Gamble Company (PG)

Payables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	66,491,000	64,528,000	62,939,000	58,780,000	56,386,000
Payables	US$ in thousands	15,364,000	14,598,000	14,882,000	13,720,000	12,071,000
Payables turnover		4.33	4.42	4.23	4.28	4.67

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $66,491,000K ÷ $15,364,000K
= 4.33

The payables turnover ratio for Procter & Gamble Company has been ranging from 4.23 to 4.67 over the past five years. This ratio indicates how efficiently the company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a period. The decreasing trend from 2020 to 2022 followed by a slight increase in 2023 and slight decrease in 2024 suggests fluctuations in how quickly the company is paying off its suppliers.

A higher payables turnover ratio generally indicates that the company is managing its trade payables effectively, paying off its suppliers more frequently. However, a lower ratio may suggest that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained relationships with suppliers.

Overall, Procter & Gamble has maintained a relatively stable payables turnover ratio over the years, indicating a consistent approach to managing its accounts payable. Further analysis in conjunction with other financial metrics will help in providing a more comprehensive assessment of the company's financial performance and liquidity position.