Procter & Gamble Company (PG)
Current ratio
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 25,392,000 | 24,435,000 | 25,642,000 | 27,449,000 | 24,709,000 | 22,458,000 | 23,111,000 | 24,940,000 | 22,648,000 | 22,305,000 | 21,866,000 | 22,521,000 | 21,653,000 | 23,416,000 | 25,545,000 | 24,336,000 | 23,091,000 | 22,608,000 | 24,655,000 | 26,026,000 |
| Total current liabilities | US$ in thousands | 36,058,000 | 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 |
| Current ratio | 0.70 | 0.71 | 0.76 | 0.75 | 0.73 | 0.69 | 0.64 | 0.67 | 0.63 | 0.59 | 0.56 | 0.62 | 0.65 | 0.68 | 0.67 | 0.67 | 0.70 | 0.71 | 0.78 | 0.87 |
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 (P&G) has exhibited a consistent downward trend from September 30, 2020, through March 31, 2022, declining from 0.87 to 0.68. This indicates that during this period, P&G's short-term liquidity position slightly weakened, as the company's current assets relative to current liabilities decreased. Nevertheless, the current ratio remained below 1.0 throughout this time frame, suggesting that P&G consistently held fewer current assets than current liabilities, which might imply potential liquidity constraints or a strategic operational approach to managing short-term assets.
From March 31, 2022, onwards, the ratio demonstrated modest improvements, rising to 0.75 by September 30, 2024. The trend indicates a gradual enhancement in liquidity, reflecting either an increase in current assets, a reduction in current liabilities, or a combination of both. The ratio approaching or crossing the 0.70 mark suggests a somewhat stabilized liquidity position, alleviating concerns that the ratio may be dangerously low.
Overall, the current ratio has shown a positive trend in the most recent periods, reaching 0.75 as of September 30, 2024. This progression signifies an improving short-term liquidity profile, although it still remains below the generally preferred benchmark of 1.0, implying that while P&G may have improved its liquidity status, it continues to operate without a significant buffer of current assets over current liabilities. This could reflect efficient working capital management strategies, or it might indicate a preference to maintain a lean liquidity position. Continuous monitoring is advisable to determine whether this upward trend sustains, potentially enhancing the company's ability to meet short-term obligations comfortably.