Procter & Gamble Company (PG)

The Procter & Gamble Company's cash conversion cycle (CCC) has predominantly remained negative over the analyzed period from June 30, 2020, to March 31, 2025. A negative CCC indicates that the company is able to convert its investments in inventory and accounts receivable into cash more quickly than it pays its suppliers, thereby generating a cash inflow before settling its payables.

Throughout this period, the CCC has fluctuated within a range approximately from -53.45 days to -28.94 days. Notably, the cycle was most negative around June 30, 2021, at -53.45 days, suggesting an increased efficiency or a strategic stance that allowed the company to realize cash flows earlier relative to its payables. Conversely, the least negative points occurred around March 31, 2022, at -28.94 days, indicating a slight reduction in the cash conversion advantage.

In the subsequent years, the CCC demonstrated periods of slight improvements and setbacks, but overall, it maintained a largely negative trend, implying ongoing efficient cash management. The fluctuations do not show any sustained deterioration; rather, they reflect typical operational variations. For example, at the end of 2023, the CCC was recorded at -34.51 days, and in the latest quarter reported (March 31, 2025), it was at -36.80 days, indicating a relatively stable and efficient working capital cycle.

In summary, the data underscores that Procter & Gamble has consistently maintained a negative cash conversion cycle, which is favorable from a liquidity and working capital management standpoint. It suggests effective inventory and receivables management combined with strong supplier terms, enabling the company to sustain a cash inflow ahead of its payment obligations.