Procter & Gamble Company (PG)
Quick ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,556,000 | 9,482,000 | 8,246,000 | 7,214,000 | 10,288,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 6,185,000 | 6,118,000 | 5,471,000 | 5,143,000 | 4,725,000 |
| Total current liabilities | US$ in thousands | 36,058,000 | 33,627,000 | 35,756,000 | 33,081,000 | 33,132,000 |
| Quick ratio | 0.44 | 0.46 | 0.38 | 0.37 | 0.45 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,556,000K
+ $—K
+ $6,185,000K)
÷ $36,058,000K
= 0.44
The analysis of Procter & Gamble Company's quick ratio over the specified periods reveals the following trends and insights:
As of June 30, 2021, the company's quick ratio was 0.45, indicating that, at that time, Procter & Gamble held approximately $0.45 in liquid assets (such as cash, marketable securities, and accounts receivable) for every dollar of current liabilities. This suggests a relatively conservative liquidity position, although it is below the ideal benchmark of 1.0, implying that the company would experience difficulty meeting short-term obligations solely with its most liquid assets.
By June 30, 2022, the quick ratio declined to 0.37, a decrease of approximately 17.8%. This decline may imply a reduction in liquid assets relative to current liabilities or an increase in current liabilities, or a combination of both, signaling a potential tightening of liquidity. The company remained below the 1.0 threshold, indicating a continued reliance on less-liquid current assets such as inventory to cover liabilities.
In the subsequent year, June 30, 2023, the quick ratio showed a slight increase to 0.38, marginally reversing the prior year's decline. Although this indicates a minor improvement in liquidity, the ratio remained substantially below 1.0, reaffirming the company's position of limited liquid assets relative to its current liabilities.
The quick ratio experienced a more significant improvement by June 30, 2024, rising to 0.46. This increase from the previous year represents approximately a 21.1% growth, suggesting a strengthening of liquidity. The company demonstrated an enhanced capacity to meet short-term obligations with its most liquid assets, although the ratio still remained below the typical threshold of 1.0.
Finally, as of June 30, 2025, the quick ratio slightly decreased to 0.44, a decrease of about 4.3% from the previous year. Despite this marginal decline, the ratio continued to stay below the 1.0 mark, indicating that the company's liquidity position, while somewhat improved in recent years, remains moderate with potential liquidity constraints under certain circumstances.
Overall, the trend indicates a pattern of moderate fluctuation in Procter & Gamble's quick ratio, with a notable dip in 2022, followed by gradual improvements through 2024, and a slight decline in 2025. The ratios consistently remain below the ideal 1.0 threshold, reflecting a conservative liquidity approach common within consumer staples firms, and emphasizing reliance on a broader range of current assets beyond just those classified as quick assets to meet short-term liabilities.