Procter & Gamble Co. (NYSE:PG)

The analysis of current assets, current liabilities, and the resulting current ratio over the examined periods reveals several key trends in the company’s short-term financial position.

Current Assets

Current assets experienced fluctuations throughout the period. The value rose initially from approximately 20,329 million US dollars in mid-2005 to a peak near 31,617 million in mid-2013. Subsequently, the assets displayed variability with lower values around 21,653 million to 23,320 million during 2018 and 2022, before a slight recovery to 24,709 million by mid-2024. Overall, there is no consistent increasing or decreasing trend, but rather cyclical changes reflecting varying liquidity levels.

Current Liabilities

Current liabilities similarly showed notable variability. Starting from roughly 25,039 million US dollars in 2005, the figures oscillated with highs near 33,726 million in 2014 and 35,756 million in 2023. A general pattern of higher liabilities is evident in the latter years compared to the initial periods, suggesting increased short-term obligations over time with some fluctuations.

Current Ratio

The current ratio fluctuated notably, beginning below 1 at 0.81 in 2005, then rising above 1 to 1.22 in 2006. This was followed by a decline to values between 0.63 and 0.88 in most later years, indicating periods when current liabilities exceeded current assets. The ratio peaked at 1.1 in 2016 but primarily remained below 1 in recent periods, signaling tighter liquidity and potential challenges in meeting short-term liabilities solely with current assets.

In conclusion, the company’s liquidity reflected by the current ratio has been volatile with most recent years showing a ratio under 1, indicating a relatively constrained short-term financial position. While current assets have shown some recovery, liabilities remain high, necessitating close monitoring of working capital management to ensure financial stability.