The Clorox Company (CLX)

Current ratio

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Total current assets US$ in thousands 1,622,000 1,661,000 1,804,000 1,911,000 1,828,000 1,745,000 1,622,000 1,763,000 1,725,000 1,869,000 1,741,000 1,820,000 1,829,000 1,962,000 2,103,000 2,144,000 2,020,000 1,750,000 1,303,000 1,266,000
Total current liabilities US$ in thousands 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 1,418,000 1,794,000 1,513,000 1,458,000
Current ratio 1.03 0.90 0.89 0.86 0.95 0.87 0.86 0.88 0.97 0.71 0.67 0.69 0.89 1.08 1.21 1.41 1.42 0.98 0.86 0.87

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,622,000K ÷ $1,574,000K
= 1.03

The current ratio of The Clorox Company has exhibited fluctuations over the past two years. As of June 30, 2024, the current ratio stands at 1.03, indicating that the company has $1.03 in current assets for every $1 in current liabilities. This suggests that the company has an adequate level of current assets to cover its short-term obligations.

It is noteworthy that the current ratio has improved from the low of 0.67 in March 2022 to the current level of 1.03, indicating a strengthening liquidity position. The company's ability to meet its short-term financial obligations has shown improvement over the recent periods.

However, it is essential to acknowledge that there have been fluctuations in the current ratio over the historical period, with ratios ranging from 0.67 to 1.42. This variability may reflect changes in the company's operating cycle, changes in working capital management, or shifts in the composition of current assets and liabilities.

Overall, while the current ratio of 1.03 as of June 30, 2024, indicates a favorable liquidity position for The Clorox Company, it is crucial to continue monitoring this ratio along with other liquidity and efficiency metrics to assess the company's short-term financial health accurately.