The Clorox Company (CLX)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.03 | 0.95 | 0.97 | 0.89 | 1.42 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,622,000K ÷ $1,574,000K
= 1.03
The current ratio for The Clorox Company has fluctuated over the past five years, ranging from 0.89 in 2021 to 1.42 in 2020. The current ratio indicates the company's ability to cover its short-term obligations with its current assets. A ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities with its current assets alone.
In the most recent period ending June 30, 2024, The Clorox Company had a current ratio of 1.03, which indicates that the company's current assets are approximately equal to its current liabilities. This suggests a moderate liquidity position, as the company has just enough current assets to cover its short-term obligations.
It is important to consider the industry norms and historical trends to assess whether the current ratio is at a satisfactory level for The Clorox Company. Additionally, further analysis of the components of current assets and liabilities would provide a more in-depth understanding of the company's liquidity position.