The Clorox Company (CLX)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,045,000 | 4,481,000 | 4,562,000 | 4,142,000 | 3,658,000 |
| Inventory | US$ in thousands | 637,000 | 696,000 | 755,000 | 752,000 | 454,000 |
| Inventory turnover | 6.35 | 6.44 | 6.04 | 5.51 | 8.06 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,045,000K ÷ $637,000K
= 6.35
The analysis of The Clorox Company's inventory turnover over the past five years shows a fluctuating trend. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times inventory is sold and replaced over a specific period.
In 2020, the inventory turnover ratio was at its highest at 10.24 times, indicating that inventory was turned over more frequently during that period. This suggests efficient inventory management and good sales performance. However, in the following years, the ratio decreased, reaching its lowest point in 2022 at 7.36 times. This decline may signal slower sales or challenges in managing inventory levels effectively.
It's positive to note that the inventory turnover ratio improved slightly in 2023 and 2024, showing some signs of recovery. An increasing ratio indicates that the company is selling and replenishing inventory at a faster rate, which can lead to lower carrying costs and reduced risk of obsolete inventory.
Overall, The Clorox Company's inventory turnover has shown fluctuations, reflecting changes in sales efficiency and inventory management practices over the years. Further analysis of the underlying factors influencing these fluctuations would provide more insights into the company's operational performance.