The Clorox Company (CLX)

Payables 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
Payables US$ in thousands 838,000 950,000 1,021,000 960,000 930,000
Payables turnover 4.64 4.26 4.39 4.75 4.45

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,891,000K ÷ $838,000K
= 4.64

The payables turnover ratio of The Clorox Company has exhibited fluctuations over the examined period from June 30, 2021, through June 30, 2025. Specifically, the ratio increased from 4.45 in 2021 to 4.75 in 2022, indicating that the company was settling its accounts payable obligations more frequently during that year. However, this upward trend was short-lived, as the ratio decreased to 4.39 in 2023 and further declined to 4.26 in 2024, suggesting a lengthening of the time taken to pay suppliers or a slowdown in the frequency of payments. Subsequently, the ratio increased slightly to 4.64 in 2025, signaling a modest recovery in the payables turnover.

Overall, the variation in the ratios across the periods indicates periods of heightened payment activity followed by pauses or extensions in payable management. The moderate fluctuations suggest a strategic approach to managing supplier payments and cash flow, with the latest figures implying a slight increase in the promptness of settling payables compared to the previous year. This pattern underscores an ongoing adjustment in the company's payment cycle, potentially reflecting changes in operational or financial strategies.