The Clorox Company (CLX)

Working capital turnover

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Revenue US$ in thousands 7,068,000 7,286,000 6,998,000 7,232,000 6,615,000
Total current assets US$ in thousands 1,622,000 1,828,000 1,725,000 1,829,000 2,020,000
Total current liabilities US$ in thousands 1,574,000 1,917,000 1,784,000 2,056,000 1,418,000
Working capital turnover 147.25 10.99

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,068,000K ÷ ($1,622,000K – $1,574,000K)
= 147.25

The working capital turnover ratio for The Clorox Company has shown a significant increase over the years, reaching 147.25 as of June 30, 2024. This indicates that the company's efficiency in utilizing its working capital to generate revenue has improved substantially compared to the previous years. In 2020, the ratio was 10.99, suggesting a substantial improvement in managing working capital effectively in just four years. The substantial increase in the working capital turnover ratio reflects strong management of the company's current assets and liabilities to support sales growth and operational efficiency.