Procter & Gamble Company (PG)

Liquidity ratios

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
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
Quick ratio 0.44 0.45 0.49 0.51 0.46 0.40 0.40 0.43 0.38 0.34 0.33 0.34 0.37 0.41 0.44 0.44 0.45 0.46 0.53 0.61
Cash ratio 0.27 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

The liquidity position of Procter & Gamble Company, as reflected through its key liquidity ratios over the analyzed period, demonstrates a cautious trend with some fluctuations.

The current ratio, which measures the ability to meet short-term obligations with current assets, has generally been declining from 0.87 at the end of September 2020 to a low of 0.56 in December 2022. Subsequently, a gradual upward trend has been observable, reaching approximately 0.70–0.75 in mid to late 2024 before stabilizing around 0.70 in mid-2025. This indicates a modest improvement in short-term liquidity, though the ratio remains below 1.0 throughout the period, implying that current liabilities slightly surpass current assets at most points. This is characteristic of a company operating with a conservative liquidity buffer.

The quick ratio, which excludes inventory from current assets to assess immediate liquidity, follows a similar declining trajectory initially, from 0.61 in September 2020 to a trough of 0.33 in March 2022. Post-2022, the quick ratio shows signs of recovery, increasing to about 0.51 by September 2023 and stabilizing around 0.44–0.45 thereafter. The ratio consistently remains below 1.0, suggesting that the company relies on more than just highly liquid assets to cover its short-term liabilities but has maintained a level that indicates reasonable liquidity in the context of its industry.

The cash ratio, which measures the most liquid assets (cash and cash equivalents) relative to current liabilities, has also declined over the period, from 0.45 in September 2020 to about 0.18–0.30 in late 2022, with some recovery and fluctuation thereafter. Notably, the cash ratio reached approximately 0.33 in September 2024, indicating the company holds sufficient cash or near-cash assets to cover roughly one-third of its current liabilities at those points. Despite fluctuations, the cash ratio's consistently low level reflects a reliance on broader current assets rather than immediate cash availability for liquidity.

Overall, these ratios collectively portray a company with a conservative liquidity stance, characterized by ratios below critical thresholds (i.e., below 1.0), which suggests prudent management of liquidity risks but also potential constraints in rapid liquidity mobilization. The observed trend points toward a gradual improvement in liquidity position in the most recent periods, yet the ratios remain moderate relative to industry standards, indicating ongoing liquidity management challenges without significant immediate cash pressures.


See also:

Procter & Gamble Company Liquidity Ratios (Quarterly Data)


Additional liquidity measure

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
Cash conversion cycle days -41.28 -36.80 -39.50 -44.72 -48.02 -32.13 -34.51 -35.73 -39.88 -28.94 -30.07 -36.16 -45.49 -37.48 -44.29 -48.59 -53.45 -38.03 -37.68 -38.33

The Procter & Gamble Company's cash conversion cycle (CCC) over the analyzed period predominantly exhibits a negative value, averaging around -36 days from the period ending September 30, 2020, through the latest data point on June 30, 2025. A consistently negative CCC indicates that the company generally collects cash from sales and receives payments from customers before settling its payable obligations to suppliers, reflecting an efficient working capital management strategy.

From September 2020 to June 2021, the CCC remains fairly stable, fluctuating narrowly from -38.33 days to -53.45 days, with the most negative point occurring in June 2021. This suggests a period where receivables were collected relatively quickly in relation to inventory and payable cycles. During this period, the company's cash inflows outpace its cash outflows, contributing to a strong cash position and liquidity profile.

Subsequently, from September 2021 through September 2022, the CCC continues to hover in the range of approximately -36 to -48 days, indicating a sustained pattern of efficient receivables collection relative to payables and inventory turnover. Notably, in June 2022, the CCC reached -45.49 days, the most negative for that cycle, further emphasizing strong operating cash flow.

In the later period, from December 2022 through September 2023, the CCC begins to trend upward, moving from -30.07 days to -35.73 days, suggesting a slight elongation in the cycle but still remaining negative. This indicates that while collections and payables management continue to be efficient, the gap between receivables collection and payables settlement is narrowing.

Between October 2023 and June 2024, the CCC fluctuates around -44 to -48 days, consistent with previous levels of efficiency. However, in the latest data points extending into 2025, the CCC moves toward less negative territory, with figures like -36.80 days and -41.28 days, suggesting a potential shift toward a slightly longer cycle or changes in operational policies or market conditions affecting receivables and payables management.

Overall, the negative cash conversion cycle indicates that Procter & Gamble generally operates with a cash flow advantage, collecting cash from customers before paying suppliers. The period reflects an efficient working capital cycle characteristic of a mature, large-scale consumer goods company. Variations within the period reveal adjustments in operational efficiency, possibly influenced by seasonal factors, strategic supply chain management, or market dynamics.