Procter & Gamble Co. (NYSE:PG)

Current Ratio

The current ratio exhibited moderate fluctuations over the six-year period. Starting at 0.75 in mid-2019, it increased to 0.85 in 2020, indicating a temporary improvement in short-term liquidity. However, from 2021 onward, the ratio declined steadily, reaching a low of 0.63 by mid-2023, before improving slightly to 0.73 in 2024. Overall, the current ratio remained below 1.0 throughout the period, suggesting limited current asset coverage relative to current liabilities.

Quick Ratio

The quick ratio followed a similar pattern to the current ratio but generally remained lower, reflecting a more conservative liquidity measure excluding inventories. Beginning at 0.51 in 2019, it rose to 0.62 in 2020 but then dropped markedly to 0.37 by 2022. The ratio showed a minor recovery to 0.46 in 2024. This downward trend after 2020 points to a decreasing ability to cover short-term obligations with the most liquid assets.

Cash Ratio

The cash ratio demonstrated more pronounced variability but consistently remained the lowest among the liquidity ratios. It increased from 0.34 in 2019 to 0.49 in 2020, indicating relatively stronger cash reserves at that time. Subsequent years saw a decline to 0.22 by 2022, followed by a modest rise to 0.28 in 2024. The generally low values throughout suggest limited immediate cash availability to meet short-term liabilities independently.

Current Assets

Current assets showed a fluctuating trend over the analyzed period. An initial growth was observed from 22,473 million USD in 2019 to 27,987 million USD in 2020, followed by a decline to 23,091 million USD in 2021. The value decreased further in 2022 to 21,653 million USD but began to recover over the subsequent two years, reaching 24,709 million USD by 2024.

Current Liabilities

Current liabilities demonstrated a generally increasing pattern, rising from 30,011 million USD in 2019 to a peak of 35,756 million USD in 2023. This was followed by a decline to 33,627 million USD in 2024. The overall trend indicates growth in short-term obligations, with some reduction in the most recent year.

Current Ratio

The current ratio, reflecting short-term liquidity, declined from 0.75 in 2019 to a low point of 0.63 in 2023, indicating a weakening in the ability to cover current liabilities with current assets. However, there was an improvement in 2024, with the ratio increasing to 0.73, suggesting a recovery in liquidity position.

Total Quick Assets

The total quick assets exhibited a fluctuating trend over the six-year period. Starting at US$15,238 million at mid-2019, there was a significant increase to US$20,359 million by mid-2020. This peak was followed by a steady decline over the next two years, reaching a low of US$12,357 million by mid-2022. Subsequently, a moderate recovery occurred with total quick assets rising to US$15,600 million by mid-2024.

Current Liabilities

Current liabilities rose consistently from US$30,011 million at mid-2019 to a peak of US$35,756 million in mid-2023. In the final year, there was a slight reduction to US$33,627 million, indicating a modest improvement in short-term obligations after several years of growth.

Quick Ratio

The quick ratio showed a general declining trend from 0.51 in mid-2019 to a low of 0.37 in mid-2022, suggesting decreasing liquidity relative to current liabilities. From mid-2022 onwards, a partial recovery took place, with the ratio improving to 0.46 by mid-2024. Despite this improvement, the quick ratio remained below the initial 2019 level, indicating relatively tighter liquidity conditions compared to the start of the period analyzed.

The financial data reflects several noteworthy trends regarding liquidity and liability management over the six-year span ending June 30, 2024.

Total Cash Assets

Total cash assets exhibited significant fluctuation. Beginning at $10,287 million in 2019, the amount peaked sharply in 2020 at $16,181 million, then recovered from a steep decline to $7,214 million in 2022 to $9,482 million by 2024. This indicates a high degree of variability in cash holdings, with a strong rebound after the trough in 2022.

Current Liabilities

Current liabilities showed a relatively stable yet upward trend through the period, starting at $30,011 million in 2019 and increasing moderately to $33,627 million in 2024, despite peaking at $35,756 million in 2023. This suggests incremental growth in short-term obligations, with a slight reduction in the most recent year observed.

Cash Ratio

The cash ratio, representing the ability to cover current liabilities with cash assets, demonstrated a declining trend from 0.34 in 2019 to a low point of 0.22 in 2022. It experienced minor recovery, increasing to 0.28 by 2024. This reflects decreasing liquidity coverage during the middle of the period, followed by a gradual improvement, though still below earlier levels.

Overall, the patterns reveal a period of volatility in cash assets with diminished liquidity relative to liabilities in the middle years, subsequently improving but not returning to the initial ratio of 2019. The steady increase in current liabilities may indicate ongoing operational or financial commitments. The fluctuation in cash reserves and the cash ratio suggests active management of liquidity positions in response to varying business conditions or strategic priorities.