Procter & Gamble Company (PG)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 84,284,000 | 84,039,000 | 82,006,000 | 80,187,000 | 76,118,000 |
| Receivables | US$ in thousands | 6,185,000 | 6,118,000 | 5,471,000 | 5,143,000 | 4,725,000 |
| Receivables turnover | 13.63 | 13.74 | 14.99 | 15.59 | 16.11 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $84,284,000K ÷ $6,185,000K
= 13.63
The receivables turnover for Procter & Gamble demonstrates a consistent decline over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 16.11 times in 2021 to 15.59 times in 2022, representing a slight reduction of approximately 3.2%. The downward trend continued into 2023, with a turnover of 14.99 times, a decline of approximately 3.8% from the previous year. Further decreases are observed in 2024 and 2025, with ratios of 13.74 and 13.63 respectively, indicating a decline of roughly 8.4% over the two-year span.
This gradual decline in receivables turnover suggests a lengthening of the average collection period, which could reflect a number of factors such as leniency in credit terms, shifts in customer payment behaviors, or potential inefficiencies in receivables management. While the ratio remains relatively high, indicating that receivables are converted to cash fairly efficiently, the persistent downward trend warrants attention to the company's credit and collections policies. It may also imply an evolving credit strategy or changes in the customer base that result in extended collection cycles.