Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Analysis of Liquidity Ratios

Microsoft Excel

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


Liquidity Ratios (Summary)

Procter & Gamble Co., liquidity ratios

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Current ratio 0.63 0.65 0.70 0.85 0.75 0.83
Quick ratio 0.38 0.37 0.45 0.62 0.51 0.59
Cash ratio 0.23 0.22 0.31 0.49 0.34 0.42

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Procter & Gamble Co. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Procter & Gamble Co. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Procter & Gamble Co. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Current Ratio

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

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in millions)
Current assets 22,648 21,653 23,091 27,987 22,473 23,320
Current liabilities 35,756 33,081 33,132 32,976 30,011 28,237
Liquidity Ratio
Current ratio1 0.63 0.65 0.70 0.85 0.75 0.83
Benchmarks
Current Ratio, Industry
Consumer Staples 0.85 0.89 0.93 0.90 0.80

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 22,648 ÷ 35,756 = 0.63

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Procter & Gamble Co. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Quick Ratio

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

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,246 7,214 10,288 16,181 4,239 2,569
Available-for-sale investment securities 6,048 9,281
Accounts receivable 5,471 5,143 4,725 4,178 4,951 4,686
Total quick assets 13,717 12,357 15,013 20,359 15,238 16,536
 
Current liabilities 35,756 33,081 33,132 32,976 30,011 28,237
Liquidity Ratio
Quick ratio1 0.38 0.37 0.45 0.62 0.51 0.59
Benchmarks
Quick Ratio, Industry
Consumer Staples 0.38 0.39 0.43 0.46 0.36

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 13,717 ÷ 35,756 = 0.38

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. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Cash Ratio

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

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,246 7,214 10,288 16,181 4,239 2,569
Available-for-sale investment securities 6,048 9,281
Total cash assets 8,246 7,214 10,288 16,181 10,287 11,850
 
Current liabilities 35,756 33,081 33,132 32,976 30,011 28,237
Liquidity Ratio
Cash ratio1 0.23 0.22 0.31 0.49 0.34 0.42
Benchmarks
Cash Ratio, Industry
Consumer Staples 0.23 0.24 0.30 0.32 0.23

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,246 ÷ 35,756 = 0.23

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. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.