Procter & Gamble Company (PG)

Payables turnover

Jun 30, 2025 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
Cost of revenue (ttm) US$ in thousands 41,164,000 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
Payables US$ in thousands 15,227,000 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
Payables turnover 2.70 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

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $41,164,000K ÷ $15,227,000K
= 2.70

The payables turnover ratio for Procter & Gamble over the specified periods indicates slight fluctuations around the general range of approximately 2.70 to 3.11 times per year. At the start of the observed timeline, on September 30, 2020, the ratio stood at 2.99, reflecting a consistent efficiency in paying off accounts payable. Throughout 2021, the ratio remained relatively stable, oscillating between 2.70 and 2.81, suggesting steady management of supplier payments without significant shifts.

In 2022, there was a modest upward trend, with the ratio rising to 2.90 in March and reaching 2.87 by September, and further increasing to 3.03 in December, indicating a slight acceleration in paying suppliers. This upward movement continued into early 2023, with the ratio peaking at 3.11 in March. Subsequently, the ratio experienced minor fluctuations, with values around 2.93 to 2.94 in the latter parts of 2023 and the first quarter of 2024, implying a relatively consistent payables management phase.

The most recent data, as of June and September 2024, shows a decrease to 2.66, potentially signaling a lengthening in the average period taken to settle payables or a shift in payment strategies. The ratio then increased again to 2.83 in December 2024, and remained near that level through March and June 2025, at 2.82 and 2.70 respectively.

Overall, the payables turnover ratio for Procter & Gamble reflects a stable but modest variability over the analyzed period. A ratio close to 3 suggests the company generally settles its accounts payable approximately three times annually, indicating a typical trade credit period consistent with industry practices. The fluctuations point to routine operational adjustments rather than significant financial strategy shifts.


See also:

Procter & Gamble Company Payables Turnover (Quarterly Data)