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: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
- Current Ratio
- The current ratio has demonstrated a general decline from September 2020 through December 2022, decreasing from 0.87 to a low of 0.56. This indicates a reduction in the company's short-term liquidity during this period, suggesting that current liabilities increasingly exceeded current assets. However, starting in early 2023, the ratio shows a steady recovery, rising to 0.76 in December 2024 before slightly tapering off to around 0.70 by September 2025. This improvement reflects an enhanced ability to cover short-term obligations over the latter part of the observed timeframe.
- Quick Ratio
- The quick ratio exhibits a similar overall pattern to the current ratio but at consistently lower levels, reflecting the exclusion of inventory from liquid assets. It declined from 0.61 in September 2020 to approximately 0.33 by December 2022, pointing to a diminished capacity to meet immediate liabilities without relying on inventory. Post-2022, the quick ratio recovers moderately to reach a peak near 0.51 in December 2024 before decreasing slightly to 0.44 by September 2025. This indicates a partial restoration of more liquid assets relative to current liabilities over time.
- Cash Ratio
- The cash ratio, representing the most conservative liquidity measure, also trends downward from 0.45 in September 2020 to a low of 0.18 by September and December 2022, signaling a significant reduction in cash and cash equivalents relative to current liabilities. Following this trough, the ratio gradually improves, peaking at 0.33 in December 2024. However, it declines modestly afterward, standing near 0.29 by September 2025. The pattern suggests that while cash reserves were constrained during earlier periods, efforts to strengthen cash holdings have been somewhat successful in recent quarters.
- Summary
- Across all three liquidity metrics, there is a clear downward trend during the 2020–2022 period, which may imply increasing short-term financial pressures or asset composition changes. The subsequent recovery from 2023 through late 2024 suggests targeted measures to enhance liquidity. However, ratios remaining below 1 throughout the timeline indicate that current liabilities consistently exceed current liquid assets under these measures, highlighting potential ongoing short-term liquidity challenges. The moderate declines observed toward the latter part of the timeframe suggest the need for continued monitoring and potential liquidity management strategies.
Current Ratio
Procter & Gamble Co., current ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
- Current Assets
- Current assets showed a fluctuating pattern over the analyzed periods. Initially, values declined from 26,026 million USD in September 2020 to a low point near 21,653 million USD in June 2022. Thereafter, a recovery trend is observed, with current assets increasing to 27,449 million USD by September 2024. A slight decrease follows, but the level remains relatively elevated compared to earlier lows, indicating some recovery in asset liquidity toward the end of the period.
- Current Liabilities
- Current liabilities exhibited an overall increasing trend, starting at 30,008 million USD in September 2020 and reaching 38,795 million USD by September 2025. The liabilities show interim rises and small declines but generally maintain an upward trajectory. There appears to be a significant build-up up to around December 2022, followed by fluctuations without sustained reductions, which implies ongoing short-term obligations increasing relative to assets.
- Current Ratio
- The current ratio remained below 1 throughout all periods, signaling that current liabilities consistently exceeded current assets. Starting at 0.87 in September 2020, the ratio experienced a gradual decline to a low of 0.56 in December 2022, highlighting a deterioration in the company's short-term liquidity position. Subsequently, the ratio improved to around 0.75 by September 2024 but slightly receded again to about 0.71 by September 2025. This pattern suggests some recovery efforts in managing liquidity but also underlines persistent challenges in covering current obligations with current assets.
- Overall Insight
- The data reflect a challenging liquidity environment over the observed timeline. While current assets show periods of recovery, they have not consistently kept pace with the steady increase in current liabilities. The persistent current ratio below 1 emphasizes ongoing short-term liquidity pressures. The improvement in the current ratio during 2023 and 2024 indicates efforts to strengthen the liquidity profile, though the ratio remains below standard benchmarks for comfort. Continuous monitoring and potential strategic adjustments in working capital management appear warranted to enhance the short-term financial stability.
Quick Ratio
Procter & Gamble Co., quick ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
- Quick Assets Trend
- The total quick assets exhibit a general decline from September 2020 through December 2022, with values falling from approximately 18,435 million USD to a low near 12,430 to 12,621 million USD between June and December 2022. After this period, a recovery trend is observed, with quick assets increasing steadily through 2023 and 2024, reaching around 18,470 million USD by September 2024. The pattern suggests a temporary depletion of quick assets during the earlier years, followed by a notable rebound in recent periods.
- Current Liabilities Trend
- Current liabilities demonstrate an overall upward trajectory during the initial intervals, increasing from roughly 30,008 million USD in September 2020 to peak near 38,746 million USD in December 2022. This is followed by a moderate reduction in 2023 and fluctuating amounts in 2024 and 2025, generally oscillating between approximately 33,000 and 38,000 million USD. The data reflect heightened short-term obligations through 2022, with some stabilization and variability thereafter.
- Quick Ratio Analysis
- The quick ratio shows a consistent decreasing trend from 0.61 in September 2020 down to a low of approximately 0.33 in December 2022, indicating a worsening liquidity position over this period where quick assets covered less than half of current liabilities. Subsequently, an improving liquidity condition is visible as the quick ratio rises to about 0.51 by September 2024 before a slight decline and fluctuations around 0.44-0.46 toward mid-2025. This implies that liquidity pressures eased after 2022 but did not fully revert to prior stronger levels.
- Overall Insights
- The data reveal a period of declining liquidity and quick assets paired with rising current liabilities up through late 2022, reflecting potential short-term financial pressures. The recovery in quick assets and partial improvement in the quick ratio post-2022 suggests measures to restore liquidity. Nevertheless, the quick ratio remaining below 1.0 throughout indicates ongoing cautiousness regarding immediate asset coverage of liabilities. Stability in current liabilities combined with improving quick assets may signal an enhanced capacity to meet short-term obligations in the latest periods.
Cash Ratio
Procter & Gamble Co., cash ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 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).
1 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
- Total Cash Assets
- The total cash assets show a declining trend from late 2020 through late 2022, decreasing from approximately $13.4 billion to around $6.7 billion. This indicates a significant reduction in liquid resources over this period. Starting in early 2023, cash assets begin to recover with some fluctuations, reaching peaks above $12 billion by late 2024 before declining somewhat again by late 2025. The fluctuations suggest periods of both cash accumulation and utilization, possibly reflecting operational cycles or strategic investments.
- Current Liabilities
- Current liabilities display an overall upward trend across the timeline. Beginning near $30 billion in the third quarter of 2020, liabilities increase steadily, peaking around $38.7 billion at the end of 2022. After this peak, liabilities somewhat stabilize with slight fluctuations but remain elevated, finishing near $38 billion by the third quarter of 2025. This increasing liability base may indicate growing short-term obligations or increased operational scale.
- Cash Ratio
- The cash ratio gradually declines from 0.45 in the third quarter of 2020 to a low of approximately 0.18 by late 2022, reflecting diminishing cash relative to current liabilities. From early 2023 onward, a recovery trend emerges with the cash ratio improving to around 0.33 by late 2024, suggesting improved liquidity. Toward the end of the period, the ratio again declines slightly, stabilizing near 0.27. This pattern indicates an initial liquidity strain followed by a recovery phase, although liquidity remains relatively modest compared to early observations.