Procter & Gamble Company (PG)
Cash ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,116,000 | 10,230,000 | 12,156,000 | 9,482,000 | 6,828,000 | 7,890,000 | 9,733,000 | 8,246,000 | 7,596,000 | 6,854,000 | 6,710,000 | 7,214,000 | 8,526,000 | 11,544,000 | 10,370,000 | 10,288,000 | 10,007,000 | 11,941,000 | 13,392,000 | 16,181,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0 |
| Total current liabilities | US$ in thousands | 34,248,000 | 33,797,000 | 36,420,000 | 33,627,000 | 32,340,000 | 35,950,000 | 37,158,000 | 35,756,000 | 38,030,000 | 38,746,000 | 36,618,000 | 33,081,000 | 34,401,000 | 38,027,000 | 36,589,000 | 33,132,000 | 32,016,000 | 31,744,000 | 30,008,000 | 32,976,000 |
| Cash ratio | 0.27 | 0.30 | 0.33 | 0.28 | 0.21 | 0.22 | 0.26 | 0.23 | 0.20 | 0.18 | 0.18 | 0.22 | 0.25 | 0.30 | 0.28 | 0.31 | 0.31 | 0.38 | 0.45 | 0.49 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,116,000K
+ $—K)
÷ $34,248,000K
= 0.27
The cash ratio of Procter & Gamble (P&G) demonstrates a declining trend from June 30, 2020, through March 31, 2022, indicating a gradual decrease in the company’s ability to meet its short-term obligations using its most liquid assets. Specifically, the ratio declined from 0.49 on June 30, 2020, to a low of 0.18 on September 30, 2022, suggesting that cash holdings relative to current liabilities have diminished during this period.
From March 31, 2022, onwards, the cash ratio exhibits a slight upward fluctuation, reaching 0.33 by September 30, 2024, before stabilizing around 0.27 on March 31, 2025. This indicates a modest recovery in liquidity positioning, though it remains below the levels observed in mid-2020. The overall pattern reflects a cautious reduction in cash reserves relative to short-term liabilities, potentially aligned with broader strategic shifts such as investments, operational adjustments, or changes in liquidity management policies.
Throughout the analyzed period, the cash ratio remains below 0.50, implying that P&G primarily relies on other liquid assets and receivables in addition to cash to cover its short-term obligations. The fluctuating yet generally low levels indicate prudent cash management, with a focus possibly on optimizing overall liquidity and investment strategies rather than maintaining excessive cash buffers. The slight upward trend in recent periods suggests a stabilization or moderate increase in cash holdings, potentially in response to forecasted operational needs or financial strategies aimed at maintaining liquidity resilience.