Procter & Gamble Company (PG)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 27,987,000 |
| 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 |
| Current ratio | 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 | 0.85 |
March 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $24,435,000K ÷ $34,248,000K
= 0.71
The Procter & Gamble Company's current ratio has demonstrated a general declining trend from mid-2020 through early 2023, followed by a subsequent recovery through mid-2024. Specifically, as of June 30, 2020, the current ratio stood at 0.85, indicating that current assets were approximately 85% of current liabilities. Over the subsequent periods, this ratio gradually declined, reaching a low of 0.56 as of December 31, 2022, signaling a reduced liquidity cushion whereby current assets covered just over half of current liabilities.
From the first quarter of 2023 onward, the current ratio shows signs of improvement, increasing to 0.59 in March 2023 and further rising to 0.63 in June 2023. This upward trend continues through the subsequent quarters, reaching 0.75 by September 2024. The ratio remains below 1.0 throughout the observed period, implying that current assets generally have not fully covered current liabilities.
In practical terms, a current ratio below 1.0 suggests that the company may face liquidity constraints under certain circumstances, although it is not necessarily indicative of insolvency. The fluctuation and overall decline from 2020 to 2022 could reflect shifts in working capital management, changes in inventory levels, receivables, or payables, or strategic asset allocations. The subsequent recovery indicates a potential strengthening or improved management of short-term assets relative to liabilities.
Overall, the trend illustrates that Procter & Gamble experienced periods of tightening liquidity, especially around late 2022, but has been progressively improving its short-term liquidity position in recent periods. Maintaining or increasing the current ratio above 0.70 remains a key point of attention to ensure sufficient liquidity to meet short-term obligations.