The Clorox Company (CLX)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.23% | 42.97% | 39.36% | 35.81% | 43.58% |
| Operating profit margin | 27.70% | 12.91% | 16.57% | 6.88% | 15.22% |
| Pretax margin | 15.17% | 5.61% | 3.22% | 8.54% | 12.26% |
| Net profit margin | 11.40% | 3.95% | 2.02% | 6.50% | 9.67% |
The analysis of The Clorox Company's profitability ratios over the period from June 2021 to June 2025 reveals notable fluctuations and trends across various key metrics.
The gross profit margin exhibited a decline from 43.58% in June 2021 to a low of 35.81% in June 2022, reflecting increased cost pressures or competitive pricing strategies during that period. Subsequently, the margin improved, reaching 39.36% in June 2023 and further rising to 42.97% in June 2024, culminating in a substantial increase to 45.23% by June 2025. This upward trend indicates enhanced efficiency in managing cost of goods sold or improved pricing power.
Operating profit margin demonstrated more volatility, declining sharply from 15.22% in June 2021 to 6.88% in June 2022, suggesting a deterioration in operating efficiency or increased operating expenses. After this dip, the margin recovered to 16.57% in June 2023 and then declined again to 12.91% in June 2024. However, a significant rebound is observed in June 2025, where the operating profit margin rises sharply to 27.70%, signaling an improvement in core operating profitability.
Pre-tax margin trend parallels the operating margin pattern, decreasing from 12.26% in June 2021 to 8.54% in June 2022, and further dropping to 3.22% in June 2023. It then stabilizes somewhat at 5.61% in June 2024 before increasing markedly to 15.17% in June 2025. This pattern reflects fluctuations in pre-tax profitability that align with operating performance and other income or expenses.
Net profit margin follows a similar trajectory, declining from 9.67% in June 2021 to 6.50% in June 2022 and reaching a low of 2.02% in June 2023. During this period, the company's bottom-line profitability was significantly compressed. The margin improved modestly to 3.95% in June 2024 but surged to 11.40% in June 2025, indicating a substantial recovery in net income relative to revenues.
Overall, the data illustrates periods of profitability contraction primarily between 2021 and 2023, followed by a strong rebound in 2024 and 2025. The notable improvement in the gross profit margin alongside significant recoveries in operating, pre-tax, and net profit margins in the most recent year suggest effective cost management, strategic operational improvements, or favorable market conditions contributing to enhanced profitability.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 35.39% | 15.93% | 20.59% | 7.94% | 17.63% |
| Return on assets (ROA) | 14.57% | 4.87% | 2.51% | 7.50% | 11.21% |
| Return on total capital | 0.00% | 152.74% | 155.00% | 126.62% | 241.61% |
| Return on equity (ROE) | 252.34% | 85.37% | 67.73% | 83.09% | 172.75% |
The Clorox Company's profitability ratios over the specified periods reveal significant fluctuations and insights into its financial performance.
Operating Return on Assets (Operating ROA):
The operating ROA experienced a notable decline from 17.63% in June 2021 to 7.94% in June 2022, indicating a decrease in the efficiency of the company's core operations relative to its asset base. However, this metric rebounded sharply in June 2023 to 20.59%, suggesting improved operational efficiency or increased profitability from core business activities. Subsequent periods show a moderate decline to 15.93% in June 2024, followed by a substantial increase to 35.39% in June 2025, which may indicate a significant enhancement in operational performance or strategic efficiencies.
Return on Assets (ROA):
ROA, which considers net income relative to total assets, declined from 11.21% in June 2021 to a low of 2.51% in June 2023, reflecting decreased overall profitability for the period. A modest recovery to 4.87% in June 2024 precedes a more pronounced increase to 14.57% in June 2025, illustrating an improvement in returning net income to shareholders and possibly reflecting better profit margins or asset utilization.
Return on Total Capital:
This ratio exhibits high volatility, with an extremely elevated figure of 241.61% in June 2021, tapering significantly to 126.62% in June 2022, and rising again to 155.00% in June 2023. However, a sudden decline to 152.74% in June 2024 is observed, culminating in a reported 0.00% in June 2025. The exceptionally high values in earlier years suggest periods of extraordinary income relative to total capital employed or possibly leverage effects. The 0.00% figure in the most recent period indicates a potentially unusual accounting event or a specific anomaly affecting the calculation, warranting further investigation.
Return on Equity (ROE):
ROE demonstrates drastic variability, decreasing from 172.75% in June 2021 to 83.09% in June 2022, and further to 67.73% in June 2023. A resurgence to 85.37% in June 2024 signals improved profitability from shareholders' equity, but the most striking change is observed in June 2025, with ROE soaring to 252.34%. This extraordinary increase implies significant enhancements in net income attributable to shareholders or may indicate leverage effects or accounting adjustments.
Overall, the data depict a period of considerable fluctuation in The Clorox Company's profitability ratios, with recent years showing signs of substantial improvement in ROA and ROE metrics. The variability, especially the extraordinary ratios in some years, suggests that the company's profitability was influenced by extraordinary items, strategic initiatives, or potential accounting anomalies. These ratios collectively point toward a variable but potentially improving profitability trend, contingent on underlying operational performance and accounting considerations.