The Clorox Company (CLX)

The current ratio of The Clorox Company has exhibited fluctuating trends over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, on June 30, 2021, the current ratio was 0.89, indicating that the company's current assets were slightly less than its current liabilities, suggestive of potential liquidity constraints. By June 30, 2022, the ratio improved to 0.97, approaching a more balanced position but still below the generally accepted benchmark of 1.0. This upward movement indicates an improvement in liquidity and a relatively better capacity to meet short-term obligations.

The ratio remained relatively stable in 2023 at 0.95, slightly below the previous year's level, signaling a marginal deterioration in liquidity compared to 2022 but still close to the threshold of 1.0. In 2024, the current ratio increased to 1.03, crossing the critical benchmark and suggesting an improved liquidity position where current assets slightly exceeded current liabilities. This indicates an increased ability to cover short-term obligations without resorting to external financing.

However, in 2025, the ratio declined sharply to 0.84, falling below the 1.0 threshold once again. This decrease suggests a relative reduction in liquidity and an increased risk of insufficient short-term asset coverage, potentially reflecting either a decline in current assets, an increase in current liabilities, or a combination of both. Such a decline warrants further scrutiny into the company's asset management and working capital strategies to assess underlying causes and implications for financial stability.

Overall, the trend in The Clorox Company's current ratio reflects periods of both improvement and concern regarding liquidity management, with the recent decline in 2025 highlighting the need for ongoing monitoring of short-term financial stability.