The Clorox Company (CLX)
Total asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,093,000 | 7,389,000 | 7,107,000 | 7,341,000 | 6,721,000 |
| Total assets | US$ in thousands | 5,751,000 | 5,945,000 | 6,158,000 | 6,334,000 | 6,213,000 |
| Total asset turnover | 1.23 | 1.24 | 1.15 | 1.16 | 1.08 |
June 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,093,000K ÷ $5,751,000K
= 1.23
The total asset turnover ratio measures the efficiency with which a company is utilizing its assets to generate revenue. The higher the ratio, the more efficiently the company is using its assets to generate sales.
Based on the data provided for The Clorox Company, the total asset turnover ratio has been relatively stable over the past five years, ranging from 1.06 in 2020 to 1.23 in 2024 and 2023. This indicates that, on average, for every dollar of assets held by the company, it generated between $1.06 and $1.23 of revenue.
A total asset turnover ratio of over 1 suggests that Clorox is effectively utilizing its assets to generate sales. This could be a reflection of effective management of inventory, efficient use of resources, and effective sales and marketing strategies.
However, it's important to note that while a high total asset turnover ratio is generally positive, an extremely high ratio could also indicate that the company is heavily reliant on assets to generate sales, which may not always be sustainable in the long term.
Overall, The Clorox Company's relatively stable total asset turnover ratio indicates a consistent level of efficiency in utilizing its assets to drive revenue generation over the past five years.