PG · 10-Q · 2026Q3 · Full report

Supply Chain And Inventory

PROCTER & GAMBLE Co · 2026-10-22 · Importance 31 · Surprise 32

P&G reported increased safety-stock levels as part of its supply-chain management, causing inventories to consume $349 million of cash year to date. Days inventory on hand nevertheless decreased by two days, indicating faster inventory movement despite the higher stock position. Trade payables increased by $1.1 billion, driven primarily by increased supply-chain activity. The company also cited supply-chain optimization, manufacturing productivity and workforce optimization as mechanisms to manage commodity, transportation and distribution pressures.

Key facts

• Trade payables increased, generating $1.1 billion of cash, driven primarily by increased supply chain activity, partially offset by decreased marketing support activity. source
• Accounts receivable increased, consuming $589 million of cash, driven primarily by sales growth; days sales outstanding increased by one day. source
• Total inventories increased, consuming $349 million of cash; days inventory on hand decreased by two days. source