Procter & Gamble Company (PG)
Payables 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 |
| Payables | US$ in thousands | 15,227,000 | 15,364,000 | 14,598,000 | 14,882,000 | 13,720,000 |
| Payables turnover | 2.70 | 2.66 | 2.93 | 2.83 | 2.70 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $41,164,000K ÷ $15,227,000K
= 2.70
The payables turnover ratio for Procter & Gamble Company over the period from June 30, 2021, to June 30, 2025, demonstrates a generally stable pattern with some fluctuations. In detail:
- As of June 30, 2021, the payables turnover was 2.70. This indicates that the company paid off its accounts payable approximately 2.7 times during the fiscal year.
- There was a slight increase in June 30, 2022, to 2.83, reflecting a modest improvement in the company's ability to settle its payables more frequently within the year.
- The upward trend continued into June 30, 2023, reaching 2.93, suggesting a further enhancement in payment efficiency or possibly shorter payment cycles.
- However, in the subsequent year ending June 30, 2024, the ratio declined slightly to 2.66, indicating a decrease in the frequency of paying off payables within the year, which might suggest a slight extension in payment terms or changes in supplier credit policies.
- By June 30, 2025, the ratio remained steady at 2.70, essentially returning to the level observed in 2021, implying a stabilization of the company's payables management.
Overall, the payables turnover ratio exhibits a pattern of slight increases followed by a minor decline, culminating in stability in recent years. This suggests that Procter & Gamble has maintained a relatively consistent approach to managing its accounts payable payments, with no significant shifts indicating aggressive or overly conservative payment strategies. The minor fluctuations could be associated with changes in supplier contracts, operational efficiencies, or shifts in cash flow management practices.