The Clorox Company (CLX)
Current ratio
| 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 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,590,000 | 1,632,000 | 1,576,000 | 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 |
| Total current liabilities | US$ in thousands | 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 | 1,418,000 |
| Current ratio | 0.74 | 0.94 | 1.00 | 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 |
March 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,590,000K ÷ $2,155,000K
= 0.74
The current ratio of The Clorox Company has exhibited a notable decline over the period from mid-2020 to early 2023, reflecting a decreasing ability to meet short-term obligations with current assets. Specifically, the ratio was 1.42 as of June 30, 2020, and remained relatively stable through September 2020 at 1.41. However, a significant decline commenced thereafter, with the ratio dropping to 1.21 by December 31, 2020, and further decreasing to 1.08 by March 31, 2021.
This downward trend continued into 2021, with the ratio falling below 1.0 to 0.89 on June 30, 2021, and reaching a low point of 0.67 by December 31, 2021. The ratio hovered around this low level through 2022, with minor fluctuations, such as 0.97 on June 30, 2022, and 0.86 by December 31, 2022. The period from March 2023 to September 2023 indicated a stabilization at approximately 0.87 to 0.86, with a slight rebound to 0.89 by December 2023.
Moving into 2024, the ratio improved progressively, reaching 0.90 on March 31, 2024, and further increasing to 1.03 by June 30, 2024. A slight decline followed, with the ratio recorded at 1.00 in September 2024, before a modest decrease to 0.94 by December 31, 2024. As of March 31, 2025, the ratio declined again to 0.74.
Overall, the financial data indicates that The Clorox Company experienced a period of liquidity pressure beginning in late 2020, as evidenced by the decline in the current ratio below the generally acceptable threshold of 1.0, suggesting decreased short-term liquidity. Although there was some recovery starting in mid-2024, the ratio overall remains below 1.0, which may imply ongoing challenges in maintaining sufficient current assets relative to current liabilities.