The Clorox Company (CLX)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,851,000 | 3,975,000 | 4,151,000 | 4,050,000 | 4,183,000 | 4,250,000 | 4,221,000 | 4,481,000 | 4,457,000 | 4,502,000 | 4,540,000 | 4,562,000 | 4,563,000 | 4,410,000 | 4,282,000 | 4,142,000 | 4,062,000 | 4,006,000 | 3,811,000 | 3,658,000 |
| Payables | US$ in thousands | 2,016,000 | 1,460,000 | 1,472,000 | 950,000 | 1,653,000 | 1,649,000 | 1,678,000 | 1,021,000 | 1,722,000 | 1,588,000 | 1,583,000 | 960,000 | 1,575,000 | 1,540,000 | 1,582,000 | 930,000 | 1,445,000 | 1,377,000 | 1,395,000 | 575,000 |
| 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 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,851,000K ÷ $2,016,000K
= 1.91
The Clorox Company’s payables turnover ratio exhibits notable fluctuations over the examined periods, reflecting variations in the company's efficiency in settling its trade payables. Initially, in June 2020, the ratio was relatively high at 6.36, indicating prompt payments to suppliers during that period. Subsequently, there was a significant decline by September 2020 to 2.73, suggesting a slowdown in paying off accounts payable, which persisted through December 2020 and March 2021 with ratios of 2.91 and 2.81 respectively.
In the period extending into June 2021, the ratio increased sharply to 4.45, signaling an improvement in payable payments, possibly aligned with operational or financial strategies. However, the ratio decreased again during the subsequent quarters, reaching approximately 2.71 to 2.86 between September 2021 and December 2021, and maintaining similar levels through March 2022.
A marked rebound occurred in June 2022 with the ratio rising to 4.75, the highest within the observed timeline, which may imply accelerated payments to suppliers or improved liquidity conditions. This elevated level was short-lived, and by September 2022, the ratio fell again to 2.87, with minimal variation through December 2022 and March 2023 (around 2.58 to 2.59).
From June 2023 onwards, a renewed increase is observed, with the ratio reaching 4.39 in June 2023, then declining to approximately 2.52–2.58 in the subsequent quarters. The data for March 2024 shows a ratio of 2.53, consistent with recent periods, but a sharp decrease is apparent by June 2024 to 4.26, followed by continued fluctuation.
The most recent data point in March 2025 reveals a notable decline to 1.91, indicating that the company may be taking longer to settle its payables or experiencing changes in supplier credit terms. Overall, the fluctuations suggest that The Clorox Company’s payables turnover ratio has experienced cycles of acceleration and deceleration, potentially reflecting operational adjustments, liquidity management strategies, or shifts in supply chain and payment policies over time.