The Clorox Company (CLX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,267,000 | 5,451,000 | 6,002,000 | 5,937,000 | 6,204,000 | 6,095,000 | 5,588,000 | 5,581,000 | 5,556,000 | 5,273,000 | 5,461,000 | 5,361,000 | 5,223,000 | 5,143,000 | 4,783,000 | 4,529,000 | 4,349,000 | 4,188,000 | 4,061,000 | 3,871,000 |
| Inventory | US$ in thousands | 637,000 | 674,000 | 655,000 | 710,000 | 696,000 | 735,000 | 741,000 | 755,000 | 755,000 | 803,000 | 818,000 | 785,000 | 752,000 | 688,000 | 609,000 | 534,000 | 454,000 | 457,000 | 514,000 | 504,000 |
| Inventory turnover | 8.27 | 8.09 | 9.16 | 8.36 | 8.91 | 8.29 | 7.54 | 7.39 | 7.36 | 6.57 | 6.68 | 6.83 | 6.95 | 7.48 | 7.85 | 8.48 | 9.58 | 9.16 | 7.90 | 7.68 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,267,000K ÷ $637,000K
= 8.27
The inventory turnover ratio for The Clorox Company has shown varying trends over the past several quarters. The ratio measures how efficiently the company is managing its inventory by indicating the number of times the company sells and replaces its inventory during a specific period.
The inventory turnover ratio ranged from 6.57 to 9.58 over the last 20 quarters. A higher turnover ratio is generally preferred as it indicates that the company is selling its inventory quickly and efficiently. The ratios for The Clorox Company have generally been above 6, which suggests that the company is effectively managing its inventory levels.
There was a slight decrease in inventory turnover from the fourth quarter of 2023 to the first quarter of 2024, followed by a slight increase in the second quarter of 2024. This fluctuation may suggest some seasonality or changes in demand for Clorox products during these periods.
Overall, The Clorox Company's inventory turnover ratio has remained relatively stable and at a healthy level, indicating efficient management of its inventory, which is essential for controlling costs and optimizing cash flow.