The Clorox Company (CLX)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 202,000 | 367,000 | 183,000 | 319,000 | 871,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,574,000 | 1,917,000 | 1,784,000 | 2,056,000 | 1,418,000 |
| Cash ratio | 0.13 | 0.19 | 0.10 | 0.16 | 0.61 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($202,000K
+ $—K)
÷ $1,574,000K
= 0.13
The cash ratio of The Clorox Company has been fluctuating over the past five years, ranging from as low as 0.10 to as high as 0.61. The decreasing trend from 2020 to 2022 may indicate a decrease in the company's ability to cover its short-term liabilities with its cash and cash equivalents. However, there was a slight improvement in 2023 and a further decrease in 2024.
A cash ratio of 0.13 in 2024 implies that for every dollar of current liabilities, the company has $0.13 available in cash and cash equivalents. While the ratio suggests that Clorox may not have a significant amount of liquid assets to cover its short-term obligations, it is essential to consider industry benchmarks and historical trends to gain a more comprehensive understanding of the company's liquidity position. Further analysis of the company's cash management practices and overall financial health would be needed to provide a more accurate assessment of its ability to meet short-term obligations using available cash resources.