Procter & Gamble Company (PG)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	9,482,000	8,246,000	7,214,000	10,288,000	16,181,000
Short-term investments	US$ in thousands	—	—	113,000	163,000	39,000
Total current liabilities	US$ in thousands	33,627,000	35,756,000	33,081,000	33,132,000	32,976,000
Cash ratio		0.28	0.23	0.22	0.32	0.49

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,482,000K + $—K) ÷ $33,627,000K
= 0.28

The cash ratio of Procter & Gamble Company has exhibited some fluctuation over the past five years. The ratio was 0.28 as of June 30, 2024, showing an increase compared to the previous year. This implies that for every dollar of current liabilities, the company had $0.28 available in cash and cash equivalents to meet its short-term obligations.

The upward trend in the cash ratio from 2023 to 2024 indicates an improvement in the company's liquidity position and its ability to cover immediate financial obligations. However, it is important to note that the cash ratio was higher in 2020 at 0.49, suggesting that the company had a more significant cash buffer relative to its current liabilities at that point in time.

Overall, while the recent increase in the cash ratio is a positive sign for Procter & Gamble's short-term liquidity, monitoring variations in this ratio over time can provide valuable insights into the company's financial health and its ability to manage cash flow effectively.