The Clorox Company (CLX)

Number of days of payables

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Payables turnover 1.91 2.72 2.82 4.26 2.53 2.58 2.52 4.39 2.59 2.84 2.87 4.75 2.90 2.86 2.71 4.45 2.81 2.91 2.73 6.36
Number of days of payables days 191.08 134.06 129.43 85.62 144.24 141.62 145.10 83.17 141.02 128.75 127.27 76.81 125.99 127.46 134.85 81.95 129.84 125.46 133.61 57.37

March 31, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.91
= 191.08

The analysis of The Clorox Company's accounts payable turnover reveals significant fluctuations in the number of days payable over the observed periods from June 30, 2020, through March 31, 2025. Initially, at the end of June 2020, the company maintained an average of approximately 57.37 days before settling its payables. This figure then increased substantially, reaching a peak of 145.10 days in September 2023, indicating a period during which the company delayed its payments to suppliers considerably longer than in earlier periods.

Throughout this timeframe, there is a pattern of notable variability. The payable days experienced periods of decline, such as June 2021 (81.95 days) and June 2022 (76.81 days), demonstrating efforts to shorten payment cycles or possible changes in payment terms or liquidity conditions. Conversely, the highest recorded value appears in March 2025, at approximately 191.08 days, suggesting a substantial extension of payables during that period.

The overall trend underscores fluctuations that could reflect strategic shifts in the company's cash management practices, supplier negotiations, or external economic factors affecting liquidity and payment policies. The considerable increase in days payable toward the most recent periods may also suggest a deliberate approach to extend payment timelines, possibly to optimize cash flow or due to operational considerations. This variability indicates that the company's accounts payable practices are dynamic and potentially impacted by both internal decisions and broader market conditions.