Procter & Gamble Company (PG)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,116,000 | 10,230,000 | 12,156,000 | 9,482,000 | 6,828,000 | 7,890,000 | 9,733,000 | 8,246,000 | 7,596,000 | 6,854,000 | 6,710,000 | 7,214,000 | 8,526,000 | 11,544,000 | 10,370,000 | 10,288,000 | 10,007,000 | 11,941,000 | 13,392,000 | 16,181,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0 |
| Receivables | US$ in thousands | 6,139,000 | 6,234,000 | 6,314,000 | 6,118,000 | 6,124,000 | 6,334,000 | 6,215,000 | 5,471,000 | 5,471,000 | 5,767,000 | 5,720,000 | 5,143,000 | 5,513,000 | 5,241,000 | 5,662,000 | 4,725,000 | 4,861,000 | 4,819,000 | 5,043,000 | 4,178,000 |
| 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 |
| Quick ratio | 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 | 0.62 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,116,000K
+ $—K
+ $6,139,000K)
÷ $34,248,000K
= 0.45
The Procter & Gamble Company's quick ratio has exhibited a generally declining trend from June 30, 2020, through March 31, 2022, decreasing from 0.62 to 0.41, indicating a deterioration in its short-term liquidity position relative to its more immediate obligations. During this period, the quick ratio consistently remained below 1.0, suggesting that the company's liquid assets (excluding inventories) were not sufficient to cover current liabilities, which may raise concerns about the company's ability to meet its short-term obligations without relying on inventory liquidation or additional financing.
From March 31, 2022, onwards, the quick ratio showed a gradual upward trajectory, reaching approximately 0.51 by September 30, 2024. Notably, this increase reflects a modest improvement in liquidity, with the ratio approaching closer to the 0.5 mark, potentially indicating a strengthening of liquid asset levels or a reduction in short-term liabilities. Despite this positive trend, the ratio remained below 0.5, which generally indicates that the company still might face liquidity constraints in extreme scenarios without access to additional liquid assets.
Overall, the historical pattern of the quick ratio suggests that Procter & Gamble has maintained a cautious liquidity stance over the analyzed period, with periods of weakness primarily occurring in late 2021 and early 2022. The subsequent recovery points to management efforts to bolster liquid assets or manage liabilities more effectively. The continued importance of inventory in the company's operational liquidity is underscored by the persistent ratio below 1.0, emphasizing reliance on inventories and less-than-quick assets to meet short-term obligations.