Procter & Gamble Company (PG)
Liquidity ratios
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.83 | 0.63 | 0.72 |
| Quick ratio | 0.46 | 0.40 | 0.40 | 0.43 | 0.38 | 0.35 | 0.33 | 0.34 | 0.38 | 0.41 | 0.44 | 0.44 | 0.46 | 0.47 | 0.53 | 0.61 | 0.62 | 0.61 | 0.38 | 0.48 |
| Cash ratio | 0.28 | 0.21 | 0.22 | 0.26 | 0.23 | 0.20 | 0.18 | 0.19 | 0.22 | 0.25 | 0.31 | 0.29 | 0.32 | 0.32 | 0.38 | 0.45 | 0.49 | 0.47 | 0.21 | 0.31 |
Procter & Gamble Company's liquidity ratios show variations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been below 1, indicating potential liquidity challenges. The ratio has fluctuated between 0.56 and 0.73, with a recent value of 0.73 as of June 30, 2024.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been below the ideal value of 1. The quick ratio has ranged from 0.33 to 0.46, reaching 0.46 as of June 30, 2024.
The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents to cover current liabilities, has similarly shown a fluctuating trend. The cash ratio has varied between 0.18 and 0.32, with the latest value standing at 0.28 as of June 30, 2024.
Overall, Procter & Gamble's liquidity ratios indicate that the company may be facing challenges in meeting its short-term obligations with its current liquid assets alone. It is essential for the company to closely monitor and manage its liquidity position to ensure it can easily meet its financial obligations as they come due.
See also:
Procter & Gamble Company Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -20.21 | -11.38 | -13.11 | -14.61 | -19.01 | -12.05 | -12.56 | -16.74 | -23.65 | -16.81 | -20.75 | -22.10 | -26.20 | -15.91 | -15.75 | -15.56 | -22.06 | -5.53 | -3.38 | -4.74 |
The cash conversion cycle (CCC) of Procter & Gamble Company has been fluctuating over the past few quarters. Generally, a negative CCC indicates that the company is efficiently managing its working capital by collecting receivables, selling inventory, and paying off its payables quickly.
In the most recent quarter, the CCC has decreased significantly to -20.21 days, which suggests that the company is able to convert its investments in inventory back into cash at a faster rate. However, this contrasts with the previous quarter where the CCC was -11.38 days, indicating a slight increase in the time it takes for the company to convert its resources back into cash.
Looking further back, there has been some variability in the CCC, with periods of improvement and deterioration. It is important to closely monitor the CCC to ensure that the company's operations remain efficient and effective in managing its working capital. Negative CCC values can be beneficial in freeing up cash for other investments or operating expenses, but it is essential to strike a balance to ensure that the company maintains optimal levels of inventory, receivables, and payables.
Overall, Procter & Gamble Company's cash conversion cycle analysis reflects a dynamic and responsive approach to managing its working capital, with some fluctuations in efficiency over time.