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Procter & Gamble Co. (PG) | Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

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Procter & Gamble Co., liquidity ratios

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    Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
Current ratio
Quick ratio
Cash ratio

Source: Based on data from Procter & Gamble Co. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Procter & Gamble Co.'s current ratio improved from 2009 to 2010 and from 2010 to 2011.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Procter & Gamble Co.'s quick ratio deteriorated from 2009 to 2010 and from 2010 to 2011.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Procter & Gamble Co.'s cash ratio deteriorated from 2009 to 2010 and from 2010 to 2011.

Current Ratio

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    Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
  Selected Financial Data (USD $ in millions)
Current assets
Current liabilities
  Current Ratio, Comparison to Industry
Procter & Gamble Co.1
  Industry, Consumer Goods

Source: Based on data from Procter & Gamble Co. Annual Reports

2011 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Procter & Gamble Co.'s current ratio improved from 2009 to 2010 and from 2010 to 2011.

Quick Ratio

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    Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
  Selected Financial Data (USD $ in millions)
Cash and cash equivalents
Investment securities
Accounts receivable
Total quick assets
Current liabilities
  Quick Ratio, Comparison to Industry
Procter & Gamble Co.1
  Industry, Consumer Goods

Source: Based on data from Procter & Gamble Co. Annual Reports

2011 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Procter & Gamble Co.'s quick ratio deteriorated from 2009 to 2010 and from 2010 to 2011.

Cash Ratio

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Export to Excel
    Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
  Selected Financial Data (USD $ in millions)
Cash and cash equivalents
Investment securities
Total cash assets
Current liabilities
  Cash Ratio, Comparison to Industry
Procter & Gamble Co.1
  Industry, Consumer Goods

Source: Based on data from Procter & Gamble Co. Annual Reports

2011 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Procter & Gamble Co.'s cash ratio deteriorated from 2009 to 2010 and from 2010 to 2011.

February 7, 2012

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