Procter & Gamble Company (PG)

Payables turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	65,132,000	63,573,000	63,587,000	63,815,000	63,344,000	62,702,000	62,236,000	62,028,000	61,718,000	61,350,000	60,450,000	59,100,000	57,804,000	56,515,000	56,049,000	55,494,000	55,088,000	63,303,000	62,680,000	62,526,000
Payables	US$ in thousands	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	10,464,000	10,781,000	10,951,000
Payables turnover		4.24	4.64	4.47	4.42	4.34	4.55	4.40	4.18	4.15	4.33	4.27	4.16	4.21	4.66	4.66	4.65	4.56	6.05	5.81	5.71

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $65,132,000K ÷ $15,364,000K
= 4.24

The payables turnover ratio of Procter & Gamble Company has been relatively stable over the periods provided. The ratio measures the efficiency with which the company pays its suppliers.

The trend indicates that Procter & Gamble was able to manage its payables effectively, with the ratio hovering around 4.24 to 4.66 over the past few quarters. A higher payables turnover ratio signifies that the company is paying its suppliers more frequently, which could indicate strong working capital management.

However, it is essential to note the outlier in the data, where the payables turnover ratio spiked significantly to 6.05 in the second quarter of 2020. This could indicate a change in payment terms or an anomaly in the data that may warrant further investigation.

Overall, the consistent performance of the payables turnover ratio suggests that Procter & Gamble has maintained a balanced approach in managing its payables efficiently while preserving good relationships with its suppliers.