Stock Analysis on Net
Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

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)

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

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Turnover Ratios
Inventory turnover 5.81 5.83 5.96 6.05 5.74 5.69 5.62 6.09 5.79 5.96 6.08 6.20 6.04 6.05 6.25 6.41 6.61 6.33 6.41 6.93 6.51 6.58 6.66 7.23 — — —
Receivables turnover 13.73 13.25 13.40 14.99 14.80 13.92 14.07 15.59 14.44 14.95 13.62 16.11 15.40 15.35 14.37 16.98 15.16 13.39 13.38 13.67 12.91 13.24 13.28 14.26 — — —
Payables turnover 3.00 2.93 2.94 2.93 3.11 3.03 2.87 2.83 2.90 2.81 2.70 2.70 2.99 3.00 2.99 2.92 3.37 3.24 3.20 3.09 3.42 3.39 3.37 3.31 — — —
Working capital turnover — — — — — — — — — — — — — — — — — — — — — — — — — — —
Average No. Days
Average inventory processing period 63 63 61 60 64 64 65 60 63 61 60 59 60 60 58 57 55 58 57 53 56 55 55 50 — — —
Add: Average receivable collection period 27 28 27 24 25 26 26 23 25 24 27 23 24 24 25 21 24 27 27 27 28 28 27 26 — — —
Operating cycle 90 91 88 84 89 90 91 83 88 85 87 82 84 84 83 78 79 85 84 80 84 83 82 76 — — —
Less: Average payables payment period 122 125 124 125 117 120 127 129 126 130 135 135 122 122 122 125 108 113 114 118 107 108 108 110 — — —
Cash conversion cycle -32 -34 -36 -41 -28 -30 -36 -46 -38 -45 -48 -53 -38 -38 -39 -47 -29 -28 -30 -38 -23 -25 -26 -34 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Procter & Gamble Co. inventory turnover ratio deteriorated from Q1 2024 to Q2 2024 and from Q2 2024 to Q3 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Procter & Gamble Co. receivables turnover ratio deteriorated from Q1 2024 to Q2 2024 but then improved from Q2 2024 to Q3 2024 exceeding Q1 2024 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Procter & Gamble Co. payables turnover ratio decreased from Q1 2024 to Q2 2024 but then increased from Q2 2024 to Q3 2024 exceeding Q1 2024 level.
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.
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. operating cycle deteriorated from Q1 2024 to Q2 2024 but then slightly improved from Q2 2024 to Q3 2024.
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. number of days of payables outstanding increased from Q1 2024 to Q2 2024 but then decreased significantly from Q2 2024 to Q3 2024.
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. cash conversion cycle deteriorated from Q1 2024 to Q2 2024 and from Q2 2024 to Q3 2024.

Inventory Turnover

Procter & Gamble Co., inventory turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data (US$ in millions)
Cost of products sold 9,855 10,144 10,500 10,613 10,404 10,897 10,846 10,802 10,326 10,664 10,365 9,791 8,922 9,253 9,142 8,942 8,716 8,869 8,723 8,938 8,427 8,919 8,484 9,029 8,343 8,667 8,229
Inventories 7,077 7,151 7,117 7,073 7,483 7,541 7,590 6,924 7,101 6,673 6,307 5,983 6,002 5,957 5,707 5,498 5,330 5,521 5,465 5,017 5,358 5,281 5,182 4,738 5,207 5,131 5,023
Short-term Activity Ratio
Inventory turnover1 5.81 5.83 5.96 6.05 5.74 5.69 5.62 6.09 5.79 5.96 6.08 6.20 6.04 6.05 6.25 6.41 6.61 6.33 6.41 6.93 6.51 6.58 6.66 7.23 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Inventory turnover = (Cost of products soldQ3 2024 + Cost of products soldQ2 2024 + Cost of products soldQ1 2024 + Cost of products soldQ4 2023) ÷ Inventories
= (9,855 + 10,144 + 10,500 + 10,613) ÷ 7,077 = 5.81

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Procter & Gamble Co. inventory turnover ratio deteriorated from Q1 2024 to Q2 2024 and from Q2 2024 to Q3 2024.

Receivables Turnover

Procter & Gamble Co., receivables turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data (US$ in millions)
Net sales 20,195 21,441 21,871 20,553 20,068 20,773 20,612 19,515 19,381 20,953 20,338 18,946 18,109 19,745 19,318 17,698 17,214 18,240 17,798 17,094 16,462 17,438 16,690 16,503 16,281 17,395 16,653
Accounts receivable 6,124 6,334 6,215 5,471 5,471 5,767 5,720 5,143 5,513 5,241 5,662 4,725 4,861 4,819 5,043 4,178 4,640 5,196 5,143 4,951 5,198 5,055 5,035 4,686 5,149 5,182 4,942
Short-term Activity Ratio
Receivables turnover1 13.73 13.25 13.40 14.99 14.80 13.92 14.07 15.59 14.44 14.95 13.62 16.11 15.40 15.35 14.37 16.98 15.16 13.39 13.38 13.67 12.91 13.24 13.28 14.26 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Receivables turnover = (Net salesQ3 2024 + Net salesQ2 2024 + Net salesQ1 2024 + Net salesQ4 2023) ÷ Accounts receivable
= (20,195 + 21,441 + 21,871 + 20,553) ÷ 6,124 = 13.73

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Procter & Gamble Co. receivables turnover ratio deteriorated from Q1 2024 to Q2 2024 but then improved from Q2 2024 to Q3 2024 exceeding Q1 2024 level.

Payables Turnover

Procter & Gamble Co., payables turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data (US$ in millions)
Cost of products sold 9,855 10,144 10,500 10,613 10,404 10,897 10,846 10,802 10,326 10,664 10,365 9,791 8,922 9,253 9,142 8,942 8,716 8,869 8,723 8,938 8,427 8,919 8,484 9,029 8,343 8,667 8,229
Accounts payable 13,691 14,234 14,435 14,598 13,790 14,153 14,845 14,882 14,175 14,154 14,223 13,720 12,134 12,027 11,935 12,071 10,464 10,781 10,951 11,260 10,207 10,266 10,243 10,344 9,716 9,740 9,458
Short-term Activity Ratio
Payables turnover1 3.00 2.93 2.94 2.93 3.11 3.03 2.87 2.83 2.90 2.81 2.70 2.70 2.99 3.00 2.99 2.92 3.37 3.24 3.20 3.09 3.42 3.39 3.37 3.31 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Payables turnover = (Cost of products soldQ3 2024 + Cost of products soldQ2 2024 + Cost of products soldQ1 2024 + Cost of products soldQ4 2023) ÷ Accounts payable
= (9,855 + 10,144 + 10,500 + 10,613) ÷ 13,691 = 3.00

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Procter & Gamble Co. payables turnover ratio decreased from Q1 2024 to Q2 2024 but then increased from Q2 2024 to Q3 2024 exceeding Q1 2024 level.

Working Capital Turnover

Procter & Gamble Co., working capital turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data (US$ in millions)
Current assets 22,458 23,111 24,940 22,648 22,305 21,866 22,521 21,653 23,416 25,545 24,336 23,091 22,608 24,655 26,026 27,987 27,140 18,917 21,925 22,473 22,312 24,431 23,346 23,320 27,960 31,214 28,096
Less: Current liabilities 32,340 35,950 37,158 35,756 38,030 38,746 36,618 33,081 34,401 38,027 36,589 33,132 32,016 31,744 30,008 32,976 32,896 30,164 30,253 30,011 28,370 31,247 29,220 28,237 30,711 33,107 30,724
Working capital (9,882) (12,839) (12,218) (13,108) (15,725) (16,880) (14,097) (11,428) (10,985) (12,482) (12,253) (10,041) (9,408) (7,089) (3,982) (4,989) (5,756) (11,247) (8,328) (7,538) (6,058) (6,816) (5,874) (4,917) (2,751) (1,893) (2,628)
 
Net sales 20,195 21,441 21,871 20,553 20,068 20,773 20,612 19,515 19,381 20,953 20,338 18,946 18,109 19,745 19,318 17,698 17,214 18,240 17,798 17,094 16,462 17,438 16,690 16,503 16,281 17,395 16,653
Short-term Activity Ratio
Working capital turnover1 — — — — — — — — — — — — — — — — — — — — — — — — — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Working capital turnover = (Net salesQ3 2024 + Net salesQ2 2024 + Net salesQ1 2024 + Net salesQ4 2023) ÷ Working capital
= (20,195 + 21,441 + 21,871 + 20,553) ÷ -9,882 = —

Average Inventory Processing Period

Procter & Gamble Co., average inventory processing period calculation (quarterly data)

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data
Inventory turnover 5.81 5.83 5.96 6.05 5.74 5.69 5.62 6.09 5.79 5.96 6.08 6.20 6.04 6.05 6.25 6.41 6.61 6.33 6.41 6.93 6.51 6.58 6.66 7.23 — — —
Short-term Activity Ratio (no. days)
Average inventory processing period1 63 63 61 60 64 64 65 60 63 61 60 59 60 60 58 57 55 58 57 53 56 55 55 50 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.81 = 63

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.

Average Receivable Collection Period

Procter & Gamble Co., average receivable collection period calculation (quarterly data)

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data
Receivables turnover 13.73 13.25 13.40 14.99 14.80 13.92 14.07 15.59 14.44 14.95 13.62 16.11 15.40 15.35 14.37 16.98 15.16 13.39 13.38 13.67 12.91 13.24 13.28 14.26 — — —
Short-term Activity Ratio (no. days)
Average receivable collection period1 27 28 27 24 25 26 26 23 25 24 27 23 24 24 25 21 24 27 27 27 28 28 27 26 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 13.73 = 27

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.

Operating Cycle

Procter & Gamble Co., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data
Average inventory processing period 63 63 61 60 64 64 65 60 63 61 60 59 60 60 58 57 55 58 57 53 56 55 55 50 — — —
Average receivable collection period 27 28 27 24 25 26 26 23 25 24 27 23 24 24 25 21 24 27 27 27 28 28 27 26 — — —
Short-term Activity Ratio
Operating cycle1 90 91 88 84 89 90 91 83 88 85 87 82 84 84 83 78 79 85 84 80 84 83 82 76 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 63 + 27 = 90

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Procter & Gamble Co. operating cycle deteriorated from Q1 2024 to Q2 2024 but then slightly improved from Q2 2024 to Q3 2024.

Average Payables Payment Period

Procter & Gamble Co., average payables payment period calculation (quarterly data)

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data
Payables turnover 3.00 2.93 2.94 2.93 3.11 3.03 2.87 2.83 2.90 2.81 2.70 2.70 2.99 3.00 2.99 2.92 3.37 3.24 3.20 3.09 3.42 3.39 3.37 3.31 — — —
Short-term Activity Ratio (no. days)
Average payables payment period1 122 125 124 125 117 120 127 129 126 130 135 135 122 122 122 125 108 113 114 118 107 108 108 110 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.00 = 122

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. number of days of payables outstanding increased from Q1 2024 to Q2 2024 but then decreased significantly from Q2 2024 to Q3 2024.

Cash Conversion Cycle

Procter & Gamble Co., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017
Selected Financial Data
Average inventory processing period 63 63 61 60 64 64 65 60 63 61 60 59 60 60 58 57 55 58 57 53 56 55 55 50 — — —
Average receivable collection period 27 28 27 24 25 26 26 23 25 24 27 23 24 24 25 21 24 27 27 27 28 28 27 26 — — —
Average payables payment period 122 125 124 125 117 120 127 129 126 130 135 135 122 122 122 125 108 113 114 118 107 108 108 110 — — —
Short-term Activity Ratio
Cash conversion cycle1 -32 -34 -36 -41 -28 -30 -36 -46 -38 -45 -48 -53 -38 -38 -39 -47 -29 -28 -30 -38 -23 -25 -26 -34 — — —

Based on: 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), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30).

1 Q3 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 63 + 27 – 122 = -32

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. cash conversion cycle deteriorated from Q1 2024 to Q2 2024 and from Q2 2024 to Q3 2024.