Procter & Gamble Company (PG)

Cash conversion cycle

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Days of inventory on hand (DOH)	days	38.51	40.01	40.15	37.15	35.59
Days of sales outstanding (DSO)	days	26.57	24.35	23.41	22.66	21.49
Number of days of payables	days	84.34	82.57	86.30	85.20	78.14
Cash conversion cycle	days	-19.25	-18.21	-22.74	-25.39	-21.06

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.51 + 26.57 – 84.34
= -19.25

The cash conversion cycle of Procter & Gamble Company has shown a decreasing trend over the past five years, indicating efficiency in managing its cash flow from operations to collection and payment. In the latest year ended June 30, 2024, the company's cash conversion cycle was -19.25 days, an improvement from -18.21 days in the previous year. This suggests that Procter & Gamble is able to convert its investments in raw materials and inventory into cash quickly, minimizing the time it takes to collect receivables while lengthening the time it takes to pay suppliers. Overall, the company's negative cash conversion cycle indicates strong liquidity management and efficient working capital utilization.