The Clorox Company (CLX)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 202,000 | 367,000 | 183,000 | 319,000 | 871,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 695,000 | 688,000 | 681,000 | 604,000 | 648,000 |
| Total current liabilities | US$ in thousands | 1,574,000 | 1,917,000 | 1,784,000 | 2,056,000 | 1,418,000 |
| Quick ratio | 0.57 | 0.55 | 0.48 | 0.45 | 1.07 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($202,000K
+ $—K
+ $695,000K)
÷ $1,574,000K
= 0.57
The quick ratio of The Clorox Company has shown variability over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a better ability to cover short-term liabilities.
In 2020, The Clorox Company had a relatively high quick ratio of 1.07, which indicates a strong liquidity position. However, the quick ratio decreased to 0.45 in 2021 and further dropped to 0.48 in 2022, suggesting a decline in the company's ability to cover its short-term liabilities with its quick assets.
In 2023, the quick ratio improved slightly to 0.55 but remained below the ideal ratio of 1.0, indicating that The Clorox Company still faced challenges in meeting its short-term obligations. In the most recent year, 2024, the quick ratio increased to 0.57, showing a slight improvement in liquidity compared to the previous year.
Overall, The Clorox Company's quick ratio has fluctuated over the years, indicating changes in its liquidity position. It is important for the company to continually monitor and manage its liquidity to ensure it can meet its short-term obligations effectively.