The Clorox Company (CLX)

Cash ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Cash and cash equivalents US$ in thousands 167,000 226,000 290,000 278,000 202,000 219,000 355,000 518,000 367,000 242,000 168,000 278,000 183,000 241,000 192,000 210,000 319,000 492,000 732,000 860,000
Short-term investments US$ in thousands 4,000 63,000 24,000 26,000
Total current liabilities US$ in thousands 1,919,000 2,155,000 1,730,000 1,579,000 1,574,000 1,846,000 2,022,000 2,228,000 1,917,000 1,996,000 1,878,000 2,010,000 1,784,000 2,643,000 2,596,000 2,639,000 2,056,000 1,819,000 1,738,000 1,516,000
Cash ratio 0.09 0.10 0.17 0.18 0.13 0.12 0.18 0.23 0.19 0.12 0.09 0.14 0.10 0.12 0.08 0.09 0.16 0.27 0.42 0.57

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($167,000K + $—K) ÷ $1,919,000K
= 0.09

The Clorox Company’s cash ratio over the analyzed period demonstrates a general declining trend from September 30, 2020, through mid-2022, followed by fluctuations thereafter. Initially, the cash ratio was relatively high at 0.57, indicating that at that time, Clorox held sufficient cash and cash equivalents to cover approximately 57% of its current liabilities, reflecting a conservative liquidity position.

Throughout 2021, the cash ratio exhibited a decreasing pattern, declining to 0.09 by September 30, 2021, and further down to 0.08 by December 31, 2021. This decline suggests a reduction in the proportion of liquid assets relative to current liabilities, potentially attributable to increased utilization of cash for operational needs or investments, or a strategic shift in liquidity management.

In 2022, the ratio experienced mild fluctuations, rising slightly to 0.12 by March 31, 2022, then decreasing again to 0.10 by June 30, 2022, and marginally increasing to 0.14 by September 30, 2022. These variations reflect slight adjustments in liquid asset holdings relative to short-term obligations but remain markedly lower than the initial levels observed in 2020.

Moving into 2023, the cash ratio continued to display modest increases, reaching a peak of 0.23 on September 30, 2023, before decreasing again to 0.18 at the year's end. This upward trend indicates periods where the company temporarily increased its cash holdings relative to current liabilities, possibly as a buffer or for strategic liquidity planning.

The subsequent quarters show fluctuating but generally stable ratios around 0.12 to 0.19, with no significant spikes, suggesting a cautious approach toward maintaining liquid assets. At June 30, 2024, the ratio was approximately 0.13, and at September 30, 2024, it increased slightly to 0.18, before decreasing again to 0.10 by March 31, 2025.

Overall, the data illustrate that Clorox’s cash ratio has experienced a consistent decline from its peak in late 2020, reaching relatively low levels in the 0.09–0.14 range in recent periods. The low and sometimes declining cash ratio indicates that the company relies less on immediate cash reserves to meet short-term liabilities, potentially reflecting a shift toward other liquidity management strategies, such as increased access to other liquid assets or flexible borrowing arrangements. The ratios generally suggest a moderate to low liquidity buffer in terms of cash, emphasizing the importance of comprehensive liquidity management to ensure operational stability.