The Clorox Company (CLX)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 226,000 | 290,000 | 278,000 | 202,000 | 219,000 | 355,000 | 518,000 | 367,000 | 242,000 | 168,000 | 278,000 | 183,000 | 241,000 | 192,000 | 210,000 | 319,000 | 492,000 | 732,000 | 860,000 | 871,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 4,000 | — | 63,000 | 24,000 | 26,000 | — | — | — | — | — |
| Receivables | US$ in thousands | 597,000 | 603,000 | 595,000 | 695,000 | 673,000 | 679,000 | 581,000 | 688,000 | 678,000 | 600,000 | 612,000 | 681,000 | 660,000 | 569,000 | 654,000 | 604,000 | 643,000 | 616,000 | 685,000 | 648,000 |
| 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 |
| Quick ratio | 0.38 | 0.52 | 0.55 | 0.57 | 0.48 | 0.51 | 0.49 | 0.55 | 0.46 | 0.41 | 0.44 | 0.48 | 0.36 | 0.30 | 0.34 | 0.45 | 0.62 | 0.78 | 1.02 | 1.07 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($226,000K
+ $—K
+ $597,000K)
÷ $2,155,000K
= 0.38
The Clorox Company's quick ratio over the period from June 30, 2020, to March 31, 2025, demonstrates distinctive trends indicative of its liquidity position. Initially, the quick ratio was 1.07 as of June 30, 2020, signifying a liquidity cushion whereby the company's most liquid assets exceeded current liabilities. This ratio experienced a gradual decline throughout subsequent periods, reaching its lowest point of approximately 0.30 on December 31, 2021, reflecting a significant reduction in the company's ability to cover short-term obligations with its most liquid assets.
Between December 31, 2021, and March 31, 2023, the ratio exhibited modest recovery and stabilization, fluctuating within the range of approximately 0.36 to 0.55. This indicates an improvement in liquidity, although the ratio remained below parity (a value of 1), suggesting that liquid assets did not fully cover current liabilities during this interval. The highest recorded quick ratio of 0.57 was observed on June 30, 2024, implying a relatively better liquidity position compared to earlier periods within the analyzed timeframe.
Overall, the trend reflects periods of diminished liquidity sensitivity, particularly in late 2021 and 2022, likely corresponding to strategic adjustments or operational factors influencing liquid asset levels. While recent years have shown signs of slight recovery, the quick ratio consistently remains below 1.0, indicating that the company generally relies on more than just its most liquid assets to meet short-term obligations, which may suggest a cautious liquidity stance or potential challenges in quickly converting assets into cash when needed.