Procter & Gamble Company (PG)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 24,709,000 | 22,648,000 | 21,653,000 | 23,091,000 | 27,987,000 |
| Total current liabilities | US$ in thousands | 33,627,000 | 35,756,000 | 33,081,000 | 33,132,000 | 32,976,000 |
| Current ratio | 0.73 | 0.63 | 0.65 | 0.70 | 0.85 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $24,709,000K ÷ $33,627,000K
= 0.73
The current ratio of Procter & Gamble Company has exhibited a downward trend over the past five years, from 0.85 in 2020 to 0.73 in 2024. This indicates a weakening liquidity position, as the company's current assets are becoming less able to cover its current liabilities. A current ratio below 1 suggests that the company may have difficulties meeting its short-term obligations, as its current liabilities exceed its current assets. This trend may signify potential challenges in managing working capital effectively or in generating sufficient cash flow to meet short-term financial obligations. Further analysis of the company's liquidity management practices and strategies for improving current ratio performance may be warranted to mitigate potential liquidity risks and enhance financial health.
Peer comparison
Jun 30, 2024