Procter & Gamble Company (PG)
Current ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 25,392,000 | 24,709,000 | 22,648,000 | 21,653,000 | 23,091,000 |
| Total current liabilities | US$ in thousands | 36,058,000 | 33,627,000 | 35,756,000 | 33,081,000 | 33,132,000 |
| Current ratio | 0.70 | 0.73 | 0.63 | 0.65 | 0.70 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $25,392,000K ÷ $36,058,000K
= 0.70
The current ratio of Procter & Gamble Company exhibits a downward trend from June 30, 2021, through June 30, 2023, declining from 0.70 to 0.63 over this period. This indicates a reduction in the company's short-term liquidity position, suggesting a decreasing ability to meet its current obligations with its current assets. However, the ratio demonstrates an upward movement beginning in June 30, 2024, increasing to 0.73, thereby indicating a modest improvement in liquidity in the most recent fiscal period. Despite this recovery, the current ratio remains below 1.0 throughout the observed timeframe, implying that the company's current assets are insufficient to cover its current liabilities on a standalone basis. The fluctuations highlight a relatively cautious liquidity stance, with periods of tightening followed by some stabilization and slight improvement in the latest period. Overall, the current ratio’s trend warrants continued monitoring, as the below-1.0 levels suggest potential liquidity concerns that could impact operational flexibility if not managed appropriately.