The Clorox Company (CLX)
Inventory turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,891,000 | 4,045,000 | 4,481,000 | 4,562,000 | 4,142,000 |
| Inventory | US$ in thousands | 523,000 | 637,000 | 696,000 | 755,000 | 752,000 |
| Inventory turnover | 7.44 | 6.35 | 6.44 | 6.04 | 5.51 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,891,000K ÷ $523,000K
= 7.44
The inventory turnover ratio for The Clorox Company demonstrates an overall upward trend over the reported period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 5.51 in 2021 to 6.44 in 2023, indicating a progressively higher frequency of inventory restocking within the fiscal year. This upward movement suggests an improvement in inventory management efficiency, with the company converting its inventory into sales more quickly than in previous years.
Between June 30, 2023, and June 30, 2024, the ratio slightly declined from 6.44 to 6.35, implying a marginal reduction in inventory turnover efficiency. However, the ratio then increased substantially to 7.44 by June 30, 2025, marking a significant enhancement in inventory turnover. This particular increase indicates that the company has optimized its inventory levels relative to sales, possibly through better demand forecasting, supply chain efficiencies, or product mix adjustments.
Overall, the trend in the inventory turnover ratio suggests that The Clorox Company has been progressively improving its inventory management over the analyzed period, with notable gains in 2025. The ratio's movement signifies effective control over inventory levels and a more efficient conversion process, which can contribute positively to liquidity and profitability metrics.