Procter & Gamble Company (PG)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 84,039,000 | 82,006,000 | 80,187,000 | 76,118,000 | 70,950,000 |
| Receivables | US$ in thousands | 6,118,000 | 5,471,000 | 5,143,000 | 4,725,000 | 4,178,000 |
| Receivables turnover | 13.74 | 14.99 | 15.59 | 16.11 | 16.98 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $84,039,000K ÷ $6,118,000K
= 13.74
The receivables turnover ratio measures how efficiently Procter & Gamble Company is collecting payments from its customers. The trend over the past five years shows a gradual decline in the receivables turnover ratio, from 16.98 in 2020 to 13.74 in 2024. This suggests that the company may be taking longer to collect payments from its customers, which could potentially impact its cash flow and working capital management.
A decreasing trend in the receivables turnover ratio may indicate potential issues with credit policies, collection practices, or increasingly lenient payment terms offered to customers. Procter & Gamble Company may want to review its credit policies and collection procedures to improve the efficiency of its accounts receivable management.
It is important for the company to monitor and address any decline in the receivables turnover ratio to ensure timely collection of outstanding receivables and to maintain a healthy cash flow position.
Peer comparison
Jun 30, 2024