The Clorox Company (CLX)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,104,000 | 7,093,000 | 7,389,000 | 7,107,000 | 7,341,000 |
| Receivables | US$ in thousands | 821,000 | 695,000 | 688,000 | 681,000 | 604,000 |
| Receivables turnover | 8.65 | 10.21 | 10.74 | 10.44 | 12.15 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,104,000K ÷ $821,000K
= 8.65
The receivables turnover ratios for The Clorox Company over the specified fiscal periods demonstrate fluctuations that suggest a changing pattern in the company's efficiency in collecting accounts receivable. As of June 30, 2021, the receivables turnover ratio was 12.15, indicating relatively efficient collection processes during that period. By June 30, 2022, the ratio decreased to 10.44, reflecting a slight decline in receivables collection efficiency. The ratio experienced a marginal increase to 10.74 in June 2023, suggesting a modest improvement in receivables management compared to the prior year but remaining below the 2021 level.
However, a subsequent decrease is observed in the June 2024 ratio, which falls to 10.21, indicating a continued decline in collection efficiency. This downward trend becomes more pronounced by June 30, 2025, where the ratio drops to 8.65, signifying a substantial decrease in the company’s ability to rapidly convert receivables into cash.
Overall, the trend observed from 2021 through 2025 indicates a gradual deterioration in receivables turnover, which could imply extended collection periods, increasing accounts receivable balances relative to sales, or potential changes in credit policy or customer payment behaviors. This trend warrants further investigation into the company’s credit and collection strategies, as persistent declines in receivables turnover can impact liquidity and cash flow management.