Microsoft Excel LibreOffice Calc

Procter & Gamble Co. (NYSE:PG)

Analysis of Liquidity Ratios

Beginner level

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

Liquidity Ratios (Summary)

Procter & Gamble Co., liquidity ratios

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Current ratio 0.75 0.83 0.88 1.10 1.00 0.94
Quick ratio 0.51 0.59 0.65 0.58 0.55 0.51
Cash ratio 0.34 0.42 0.50 0.43 0.39 0.32

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Procter & Gamble Co.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.

Current Ratio

Procter & Gamble Co., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Current assets 22,473  23,320  26,494  33,782  29,646  31,617 
Current liabilities 30,011  28,237  30,210  30,770  29,790  33,726 
Liquidity Ratio
Current ratio1 0.75 0.83 0.88 1.10 1.00 0.94
Benchmarks
Current Ratio, Industry
Consumer Goods 0.98 1.00 1.12 1.10 1.18 —

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 22,473 ÷ 30,011 = 0.75

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Procter & Gamble Co.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Quick Ratio

Procter & Gamble Co., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 4,239  2,569  5,569  7,102  6,845  8,558 
Available-for-sale investment securities 6,048  9,281  9,568  6,246  4,767  2,128 
Accounts receivable 4,951  4,686  4,594  4,373  4,861  6,386 
Total quick assets 15,238  16,536  19,731  17,721  16,473  17,072 
 
Current liabilities 30,011  28,237  30,210  30,770  29,790  33,726 
Liquidity Ratio
Quick ratio1 0.51 0.59 0.65 0.58 0.55 0.51
Benchmarks
Quick Ratio, Industry
Consumer Goods 0.73 0.75 0.85 0.82 0.83 —

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 15,238 ÷ 30,011 = 0.51

Liquidity 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 2017 to 2018 and from 2018 to 2019.

Cash Ratio

Procter & Gamble Co., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 4,239  2,569  5,569  7,102  6,845  8,558 
Available-for-sale investment securities 6,048  9,281  9,568  6,246  4,767  2,128 
Total cash assets 10,287  11,850  15,137  13,348  11,612  10,686 
 
Current liabilities 30,011  28,237  30,210  30,770  29,790  33,726 
Liquidity Ratio
Cash ratio1 0.34 0.42 0.50 0.43 0.39 0.32
Benchmarks
Cash Ratio, Industry
Consumer Goods 0.49 0.52 0.62 0.59 0.59 —

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,287 ÷ 30,011 = 0.34

Liquidity 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 2017 to 2018 and from 2018 to 2019.