The Clorox Company (CLX)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,093,000 | 7,389,000 | 7,107,000 | 7,341,000 | 6,721,000 |
| Property, plant and equipment | US$ in thousands | 1,708,000 | 1,691,000 | 1,676,000 | 1,634,000 | 1,408,000 |
| Fixed asset turnover | 4.15 | 4.37 | 4.24 | 4.49 | 4.77 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,093,000K ÷ $1,708,000K
= 4.15
The fixed asset turnover ratio for The Clorox Company has fluctuated over the past five years, ranging from 5.25 to 6.00. A higher fixed asset turnover ratio indicates that the company is generating more revenue relative to its investment in fixed assets.
The slight decrease in fixed asset turnover from 2020 to 2022 may suggest that Clorox's efficiency in utilizing its fixed assets to generate sales slightly declined during this period. However, the ratio improved in 2023 and 2024, indicating a better utilization of fixed assets to generate revenue.
Overall, The Clorox Company has consistently maintained a relatively high fixed asset turnover ratio, which signifies efficient management of its fixed assets to drive sales. It is important for the company to continue monitoring and optimizing its asset utilization to sustain and enhance its operational efficiency.