Procter & Gamble Company (PG)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,482,000 | 8,246,000 | 7,214,000 | 10,288,000 | 16,181,000 |
| Short-term investments | US$ in thousands | — | — | 113,000 | 163,000 | 39,000 |
| Receivables | US$ in thousands | 6,118,000 | 5,471,000 | 5,143,000 | 4,725,000 | 4,178,000 |
| Total current liabilities | US$ in thousands | 33,627,000 | 35,756,000 | 33,081,000 | 33,132,000 | 32,976,000 |
| Quick ratio | 0.46 | 0.38 | 0.38 | 0.46 | 0.62 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,482,000K
+ $—K
+ $6,118,000K)
÷ $33,627,000K
= 0.46
The quick ratio of Procter & Gamble Company has exhibited fluctuations over the past five years. The ratio, which measures the ability of a company to meet its short-term obligations with its most liquid assets, decreased from 0.62 in 2020 to 0.46 in 2024, showing a declining trend. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without relying on selling inventory.
In 2023 and 2022, the quick ratio remained relatively stable at 0.38, which suggests a consistent level of liquidity for meeting short-term obligations. However, it is important to note that a quick ratio of 0.38 is considered low and may indicate potential liquidity challenges.
Overall, the decreasing trend in the quick ratio from 2020 to 2024 indicates a potential decrease in Procter & Gamble's ability to cover its short-term liabilities with its quick assets. It is essential for the company to closely monitor its liquidity position and take necessary measures to improve its quick ratio in order to manage short-term liquidity risk effectively.
Peer comparison
Jun 30, 2024