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 | 7,093,000 | 7,389,000 | 7,107,000 | 7,341,000 | 6,721,000 |
| 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 | 147.77 | — | — | — | 11.16 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,093,000K ÷ ($1,622,000K – $1,574,000K)
= 147.77
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.