Procter & Gamble Company (PG)
Payables 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 |
| Payables | US$ in thousands | 14,512,000 | 14,495,000 | 15,350,000 | 15,364,000 | 13,691,000 | 14,234,000 | 14,435,000 | 14,598,000 | 13,790,000 | 14,153,000 | 14,845,000 | 14,882,000 | 14,175,000 | 14,154,000 | 14,223,000 | 13,720,000 | 12,134,000 | 12,027,000 | 11,935,000 | 12,071,000 |
| Payables turnover | 2.82 | 2.83 | 2.66 | 2.66 | 3.00 | 2.93 | 2.94 | 2.93 | 3.11 | 3.03 | 2.87 | 2.83 | 2.90 | 2.81 | 2.70 | 2.70 | 2.99 | 3.00 | 2.99 | 2.92 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $40,881,000K ÷ $14,512,000K
= 2.82
The payables turnover ratio for Procter & Gamble has demonstrated a relatively stable pattern over the analyzed periods, with slight fluctuations suggesting consistent management of its accounts payable. Beginning in June 2020, the ratio was approximately 2.92, gradually increasing to a peak of 3.11 in March 2023, indicating a slight improvement in the company's efficiency in settling its payables or a change in payment terms.
Between March 2023 and June 2024, the ratio experienced a modest decline from 3.11 to approximately 2.66, reflecting either a lengthening of payment periods or changes in the company's purchasing or credit policies. Notably, this ratio remained relatively steady in the subsequent periods, hovering around 2.66 to 2.83 through September 2024, before slightly rising again to approximately 2.82 in March 2025.
This overall trend underscores a pattern of consistent, moderate payables management, with periods of tightening and loosening of payment cycles. The fluctuations are within a narrow range, suggesting that P&G maintains a balanced approach to its accounts payable, aligning its payables strategy with its overall liquidity and working capital management practices.