Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Procter & Gamble Co., short-term (operating) activity ratios

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

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).

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Procter & Gamble Co.’s inventory turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Procter & Gamble Co.’s receivables turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Procter & Gamble Co.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.

Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Procter & Gamble Co.’s number of days of inventory outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Procter & Gamble Co.’s operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Procter & Gamble Co.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Procter & Gamble Co.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.

Procter & Gamble Co., inventory turnover calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Cost of products sold
	Inventories
	Short-term Activity Ratio
	Inventory turnover¹
	Benchmarks
	Inventory Turnover, Industry
	Consumer Goods

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
Inventory turnover = Cost of products sold ÷ Inventories
= hidden ÷ hidden = hidden

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Procter & Gamble Co.’s inventory turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Procter & Gamble Co., receivables turnover calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Net sales
	Accounts receivable
	Short-term Activity Ratio
	Receivables turnover¹
	Benchmarks
	Receivables Turnover, Industry
	Consumer Goods

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
Receivables turnover = Net sales ÷ Accounts receivable
= hidden ÷ hidden = hidden

Short-term activity ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Procter & Gamble Co.’s receivables turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Procter & Gamble Co., payables turnover calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in millions)
	Cost of products sold
	Accounts payable
	Short-term Activity Ratio
	Payables turnover¹
	Benchmarks
	Payables Turnover, Industry
	Consumer Goods

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
Payables turnover = Cost of products sold ÷ Accounts payable
= hidden ÷ hidden = hidden

Short-term activity ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Procter & Gamble Co.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.

Procter & Gamble Co., working capital turnover calculation, comparison to benchmarks

		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
	Less: Current liabilities
	Working capital

	Net sales
	Short-term Activity Ratio
	Working capital turnover¹
	Benchmarks
	Working Capital Turnover, Industry
	Consumer Goods

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
Working capital turnover = Net sales ÷ Working capital
= hidden ÷ hidden = hidden

Short-term activity ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.

Procter & Gamble Co., average inventory processing period calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data
	Inventory turnover
	Short-term Activity Ratio (no. days)
	Average inventory processing period¹
	Benchmarks (no. days)
	Average Inventory Processing Period, Industry
	Consumer Goods

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ hidden = hidden

Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Procter & Gamble Co.’s number of days of inventory outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Procter & Gamble Co., average receivable collection period calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data
	Receivables turnover
	Short-term Activity Ratio (no. days)
	Average receivable collection period¹
	Benchmarks (no. days)
	Average Receivable Collection Period, Industry
	Consumer Goods

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ hidden = hidden

Short-term activity ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.

Procter & Gamble Co., operating cycle calculation, comparison to benchmarks

No. days

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Short-term Activity Ratio
	Operating cycle¹
	Benchmarks
	Operating Cycle, Industry
	Consumer Goods

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
Operating cycle = Average inventory processing period + Average receivable collection period
= hidden + hidden = hidden

Short-term activity ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Procter & Gamble Co.’s operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Procter & Gamble Co., average payables payment period calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data
	Payables turnover
	Short-term Activity Ratio (no. days)
	Average payables payment period¹
	Benchmarks (no. days)
	Average Payables Payment Period, Industry
	Consumer Goods

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ hidden = hidden

Short-term activity ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Procter & Gamble Co.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.

Procter & Gamble Co., cash conversion cycle calculation, comparison to benchmarks

No. days

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Short-term Activity Ratio
	Cash conversion cycle¹
	Benchmarks
	Cash Conversion Cycle, Industry
	Consumer Goods

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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= hidden + hidden – hidden = hidden

Short-term activity ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Procter & Gamble Co.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.

	Procter & Gamble Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

Procter & Gamble Co. (PG)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle