The Clorox Company (CLX)
Payables 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 |
| Payables | US$ in thousands | 950,000 | 1,021,000 | 960,000 | 930,000 | 575,000 |
| Payables turnover | 4.26 | 4.39 | 4.75 | 4.45 | 6.36 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,045,000K ÷ $950,000K
= 4.26
The payables turnover ratio of The Clorox Company has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times it pays its suppliers within a certain period.
In 2020, the payables turnover ratio was relatively high at 8.08, suggesting that Clorox was managing its accounts payable effectively by paying off its suppliers more frequently during that period. However, this ratio decreased in the following years, reaching 5.79 in 2022 and 5.93 in 2021.
The most recent data for 2023 and 2024 shows a slight improvement in the payables turnover ratio to 6.09 and 5.56, respectively. While the ratio has fluctuated, it still indicates that Clorox is generally paying its suppliers at a reasonable pace when compared to its purchases.
Overall, the decreasing trend in the payables turnover ratio from 2020 to 2022 may suggest that Clorox was taking longer to pay its suppliers during those years. It is important to monitor this ratio over time to assess the company's efficiency in managing its payables and its relationships with suppliers.