Procter & Gamble Company (PG)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,556,000 | 9,482,000 | 8,246,000 | 7,214,000 | 10,288,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 36,058,000 | 33,627,000 | 35,756,000 | 33,081,000 | 33,132,000 |
| Cash ratio | 0.27 | 0.28 | 0.23 | 0.22 | 0.31 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,556,000K
+ $—K)
÷ $36,058,000K
= 0.27
The cash ratio of Procter & Gamble Company over the period from June 30, 2021, to June 30, 2025, demonstrates a relatively stable but slightly fluctuating trend. On June 30, 2021, the cash ratio was 0.31, indicating that the company held cash and cash equivalents sufficient to cover approximately 31% of its current liabilities with liquid assets. By June 30, 2022, the ratio decreased to 0.22, reflecting a reduction in the company's liquid liquidity position relative to its current liabilities. This downward movement continued marginally into June 30, 2023, with the ratio standing at 0.23, suggesting a slight recovery but remaining below the 2021 level.
From June 30, 2023, onward, the cash ratio exhibited an upward trend, reaching 0.28 by June 30, 2024, and maintaining a similar level at 0.27 by June 30, 2025. This progression indicates an improvement in the company's immediate liquidity position, although it remains below the levels observed in 2021.
Overall, the cash ratio indicates that Procter & Gamble has maintained a prudent liquidity buffer with fluctuating levels of cash and cash equivalents relative to its short-term obligations. The increase observed in the most recent years suggests efforts to enhance liquidity or a strategic shift toward maintaining more liquid assets. However, the ratios remain below the more conservative benchmark of 0.50 typically considered sufficient to cover current liabilities entirely with cash and cash equivalents. Consequently, while the company's liquidity position appears to be improving slightly, it continues to rely on other current assets beyond cash to meet short-term liabilities.