Procter & Gamble Co. (PG) | Liquidity Analysis

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

Ratios (Summary)

Procter & Gamble Co., liquidity ratios

	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
Current ratio	0.80	0.77	0.71	0.79	0.78	1.22
Quick ratio	0.33	0.34	0.34	0.33	0.40	0.68
Cash ratio	0.10	0.12	0.15	0.11	0.18	0.39

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.

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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	21,970	18,782	21,905	24,515	24,031	24,329
Current liabilities	27,293	24,282	30,901	30,958	30,717	19,985
Current Ratio, Comparison to Industry
Procter & Gamble Co.¹	0.80	0.77	0.71	0.79	0.78	1.22
Industry, Consumer Goods	1.08	1.18	1.11	1.12	1.10	–

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

2011 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 21,970 ÷ 27,293 = 0.80

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.

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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	2,768	2,879	4,781	3,313	5,354	6,693
Investment securities	–	–	–	228	202	1,133
Accounts receivable	6,275	5,335	5,836	6,761	6,629	5,725
Total quick assets	9,043	8,214	10,617	10,302	12,185	13,551
Current liabilities	27,293	24,282	30,901	30,958	30,717	19,985
Quick Ratio, Comparison to Industry
Procter & Gamble Co.¹	0.33	0.34	0.34	0.33	0.40	0.68
Industry, Consumer Goods	0.72	0.80	0.70	0.70	0.68	–

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

2011 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 9,043 ÷ 27,293 = 0.33

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.

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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	2,768	2,879	4,781	3,313	5,354	6,693
Investment securities	–	–	–	228	202	1,133
Total cash assets	2,768	2,879	4,781	3,541	5,556	7,826
Current liabilities	27,293	24,282	30,901	30,958	30,717	19,985
Cash Ratio, Comparison to Industry
Procter & Gamble Co.¹	0.10	0.12	0.15	0.11	0.18	0.39
Industry, Consumer Goods	0.33	0.36	0.29	0.27	0.25	–

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

2011 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 2,768 ÷ 27,293 = 0.10

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.

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