Procter & Gamble Company (PG)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	39.32	40.63	41.05	40.71	40.76	43.56	44.23	44.66	40.95	42.25	40.29	38.95	37.78	38.76	38.79	37.54	36.43	30.73	32.15	31.90
Days of sales outstanding (DSO)	days	26.57	26.59	27.54	27.24	24.35	24.66	26.22	25.95	23.41	25.27	24.42	26.79	22.66	23.70	23.78	25.40	21.49	24.08	27.25	27.29
Number of days of payables	days	86.10	78.61	81.71	82.56	84.12	80.27	83.00	87.35	88.01	84.33	85.46	87.84	86.63	78.37	78.32	78.50	79.98	60.33	62.78	63.93
Cash conversion cycle	days	-20.21	-11.38	-13.11	-14.61	-19.01	-12.05	-12.56	-16.74	-23.65	-16.81	-20.75	-22.10	-26.20	-15.91	-15.75	-15.56	-22.06	-5.53	-3.38	-4.74

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 39.32 + 26.57 – 86.10
= -20.21

The cash conversion cycle for Procter & Gamble Company has been fluctuating over the past few quarters, ranging from -26.20 days to -3.38 days. A negative cash conversion cycle indicates that the company is efficiently managing its working capital, specifically its cash flows from operations.

In recent quarters, the company has shown a trend of reducing its cash conversion cycle, reaching a low of -26.20 days in Sep 2021 and an increase to -11.38 days in Mar 2024. This trend indicates that Procter & Gamble has been able to improve its cash turnover, indicating effective management of inventory, accounts receivable, and accounts payable.

Overall, the company's consistently negative cash conversion cycle suggests that Procter & Gamble is able to quickly convert its sales into cash, which is a positive sign of operational efficiency and effective working capital management.