Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Procter & Gamble Co., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
- Current Ratio
- The current ratio demonstrates moderate fluctuations over the observed periods. Initially, it decreased gradually from 0.8 in September 2018 to a low of 0.56 by December 2022, indicating a declining short-term liquidity position. However, from early 2023 onwards, there is a noticeable improvement, with the ratio increasing steadily to peak near 0.75 in September 2024 before a slight decline in the last recorded quarter. Overall, the current ratio remains below 1, suggesting limited coverage of current liabilities by current assets throughout the period.
- Quick Ratio
- The quick ratio exhibits a similar downward trend through 2018 to late 2022, falling from 0.56 to 0.33, indicating a decreasing ability to cover short-term obligations without relying on inventory. Post-2022, there is a recovery phase with the quick ratio rising to about 0.51 by September 2024 before a minor decrease towards the end of the period. Despite this improvement, the ratio consistently remains under 1, highlighting ongoing moderate liquidity constraints excluding inventory.
- Cash Ratio
- The cash ratio shows a more pronounced volatility compared to the other liquidity ratios. It started at 0.39 in September 2018 and declined steadily to a low of 0.18 by December 2022, reflecting a decreasing proportion of cash and cash equivalents relative to current liabilities. A rebound occurs beginning early 2023, with the ratio increasing to approximately 0.33 by September 2024 before slight weakening in the subsequent quarter. This pattern indicates fluctuating cash reserves available to meet immediate liabilities, with a notable trough in late 2022 and a partial recovery thereafter.
Current Ratio
Procter & Gamble Co., current ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
The analysis of the quarterly financial data reveals notable patterns in liquidity and working capital management over the period examined.
- Current Assets
- Current assets exhibit fluctuations throughout the timeline with some distinct peaks and troughs. Notably, there is an increase from a low near the end of 2019 peaking around mid-2020, followed by a gradual decline and subsequent stabilization. Despite some volatility, current assets generally range between approximately 19,000 million USD and 28,000 million USD, indicating variability possibly linked to operational cycles or inventory changes.
- Current Liabilities
- Current liabilities consistently remain higher than current assets for every period, starting above 29,000 million USD and rising to peaks exceeding 38,000 million USD near the end of 2021 and into 2022. There is a sustained level of current liabilities above 30,000 million USD, reflecting a significant short-term obligation load. Periods of increased liabilities may coincide with seasonal financing needs or other obligations that require close monitoring.
- Current Ratio
- The current ratio consistently remains below 1.0 across all quarters, signaling that current liabilities exceed current assets at each measurement date. Starting at around 0.8 at the beginning of the period, the ratio declines to a low of approximately 0.56 in mid-2022, indicative of tightening liquidity conditions. In the more recent quarters, there is a partial recovery with the ratio climbing back toward 0.75 before a slight dip again. This ratio trend suggests ongoing pressure on the company's short-term liquidity but with some stabilization attempts in later periods.
Overall, the data indicates that the company operates with a current ratio consistently below the benchmark of 1.0, reflecting potential liquidity risk. Fluctuations in current assets and liabilities reinforce the importance of managing working capital carefully to maintain operational flexibility. The partial improvement in the current ratio in recent quarters may be a positive sign, yet continuous observation is necessary given the historically low liquidity buffer.
Quick Ratio
Procter & Gamble Co., quick ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
- Total Quick Assets
-
Total quick assets exhibited notable fluctuations throughout the periods. Initially, from September 2018 to December 2019, a declining trend was observable, with values decreasing from approximately 16.3 billion USD to 11.5 billion USD. A substantial increase occurred in the first half of 2020, peaking around 20 billion USD, followed by a gradual decline through 2021 and much of 2022, reaching around 12.4 billion USD by the third quarter of 2022.
Subsequently, total quick assets showed a recovery trend beginning in late 2022, rising from approximately 12.6 billion USD to a high near 18.5 billion USD by early 2025, despite some fluctuations. This pattern indicates periods of asset base strengthening interspersed with phases of contraction.
- Current Liabilities
-
Current liabilities followed an overall upward trajectory over the analyzed timeframe. Starting from about 29.2 billion USD in September 2018, liabilities rose steadily, peaking near 38.7 billion USD during the third quarter of 2022. Some volatility was present, with minor dips and recoveries, but the general direction was an increase in obligations.
Post the peak in late 2022, current liabilities declined somewhat, stabilizing around 33.6 billion USD by early 2025, suggesting efforts to manage short-term obligations more effectively or changes in operational financing practices.
- Quick Ratio
-
The quick ratio demonstrated varying liquidity levels across the periods, reflecting the interplay between quick assets and current liabilities. Starting at a moderate 0.56 in September 2018, there was a slight decline towards a low of 0.33 by mid-2022, indicating a reduced ability to cover short-term liabilities with the most liquid assets during that time.
From mid-2023 onward, the ratio improved steadily, reaching approximately 0.51 by March 2025. This improvement points to enhanced liquidity positioning, potentially due to increases in quick assets and/or better management of current liabilities. However, the ratio remained below 1.0 throughout, implying that liquid assets did not fully cover current liabilities at any point.
- Summary of Financial Position Trends
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The financial data reveals cycles of liquidity tightening and strengthening. The substantial growth in quick assets during early 2020 may be linked to strategic shifts or external conditions increasing cash and near-cash assets.
Current liabilities showed a persistent upward trend through most periods, contributing to pressure on the company's liquidity ratios. The partial improvement in the quick ratio toward the end of the timeline suggests some corrective measures in managing liquidity risk.
Overall, the liquidity profile improved after a trough in 2022 but remained below ideal coverage levels, indicating continued necessity for cautious cash and liability management.
Cash Ratio
Procter & Gamble Co., cash ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
- Total Cash Assets
-
Total cash assets exhibit notable fluctuations over the observed periods. Initially, there is a downward trend from September 2018 (approximately 11,253 million USD) through December 2019 (approximately 6,279 million USD). This is followed by a substantial increase in early 2020, peaking at around 16,181 million USD in the second quarter of 2020. After this peak, cash assets gradually decline again reaching a low of about 6,710 million USD by the third quarter of 2022. Subsequently, there is a moderate recovery, with cash levels rising to approximately 12,156 million USD in the first quarter of 2024 before slightly decreasing again to around 9,116 million USD by the third quarter of 2024.
- Current Liabilities
-
Current liabilities display a generally increasing trend throughout the timeline. Starting at approximately 29,220 million USD in September 2018, the figures rise with some fluctuations to reach a maximum of about 38,746 million USD in the third quarter of 2022. Post this peak, current liabilities slightly decrease but remain elevated, fluctuating around the 33,000 to 37,000 million USD mark towards the end of the timeline in early 2025.
- Cash Ratio
-
The cash ratio follows a pattern roughly mirroring fluctuations in total cash assets relative to current liabilities. It begins at a moderate 0.39 ratio in late 2018, declining steadily to 0.21 by the end of 2019. Corresponding with the surge in cash assets in early 2020, the ratio increases markedly to 0.49 in the second quarter of 2020. After this peak, the ratio generally declines again, reaching a low around 0.18 by late 2022. Towards the later periods covered, the cash ratio shows some recovery, rising to approximately 0.33 in early 2024 before a minor reduction down to 0.27 by the third quarter of 2024.
- Summary Analysis
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The data reveals considerable volatility in liquid asset levels juxtaposed with a general increase in short-term obligations. The sharp rise in cash assets and the cash ratio during early 2020 suggests a strategic accumulation of liquidity, possibly in response to external economic conditions. Meanwhile, the persistent increase in current liabilities may indicate growing operational or financial obligations. The recovery in cash assets and cash ratio post-2022 could denote a stabilization phase or improved cash management practices. Overall, the relationship between cash assets and current liabilities reflects fluctuating liquidity positions with intermittent strengthening, but persistent pressure from rising liabilities.