The Clorox Company (CLX)
Fixed asset turnover
| Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,076,000 | 7,090,000 | 7,190,000 | 6,933,000 | 7,286,000 | 7,062,000 | 6,959,000 | 6,935,000 | 6,998,000 | 7,039,000 | 7,007,000 | 7,157,000 | 7,267,000 | 7,448,000 | 7,451,000 | 7,057,000 | 6,647,000 | 6,291,000 | 6,059,000 | 6,108,000 |
| Property, plant and equipment | US$ in thousands | 1,315,000 | 1,292,000 | 1,314,000 | 1,317,000 | 1,345,000 | 1,315,000 | 1,322,000 | 1,322,000 | 1,334,000 | 1,312,000 | 1,298,000 | 1,301,000 | 1,302,000 | 1,251,000 | 1,221,000 | 1,176,000 | 1,103,000 | 1,047,000 | 1,052,000 | 1,034,000 |
| Fixed asset turnover | 5.38 | 5.49 | 5.47 | 5.26 | 5.42 | 5.37 | 5.26 | 5.25 | 5.25 | 5.37 | 5.40 | 5.50 | 5.58 | 5.95 | 6.10 | 6.00 | 6.03 | 6.01 | 5.76 | 5.91 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,076,000K ÷ $1,315,000K
= 5.38
The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. The higher the ratio, the better the company is utilizing its fixed assets to generate sales.
Based on the data provided for The Clorox Company, the fixed asset turnover ratio has been relatively stable over the past several quarters, ranging from 5.25 to 6.10. This indicates that The Clorox Company has been consistently effective in generating revenue from its investment in fixed assets.
The peak ratio of 6.10 in March 2021 suggests that The Clorox Company was particularly efficient in using its fixed assets to generate sales at that time. However, it is important to note that the ratio has shown some fluctuations since then.
Overall, the consistently high fixed asset turnover ratios for The Clorox Company indicate efficient management of fixed assets to drive revenue generation. Continued monitoring of this ratio will be important to assess the company's ongoing operational efficiency and asset utilization.