The Clorox Company (CLX)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.97% | 39.36% | 35.81% | 43.58% | 45.57% |
| Operating profit margin | 12.91% | 16.57% | 6.88% | 15.22% | 16.43% |
| Pretax margin | 5.61% | 3.22% | 8.54% | 12.26% | 17.63% |
| Net profit margin | 3.95% | 2.02% | 6.50% | 9.67% | 13.97% |
The Clorox Company's profitability ratios have shown fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue remaining after accounting for the cost of goods sold, has ranged from 36.37% in 2022 to 46.30% in 2020. This ratio has improved in recent years, with a notable increase to 43.12% in 2024.
The operating profit margin, representing the company's profitability from core operations, has varied from 14.16% in 2023 to 29.16% in 2020. There was a significant improvement in 2024, with the operating profit margin reaching 23.67%.
The pretax margin, reflecting the company's profitability before taxes, has fluctuated from 3.10% in 2023 to 17.91% in 2020. In 2024, the pretax margin stood at 5.46%, indicating a lower profitability level compared to previous years.
The net profit margin, which indicates the percentage of revenue that translates into profit after all expenses are deducted, has ranged from 2.05% in 2023 to 14.20% in 2020. The net profit margin decreased to 3.96% in 2024, reflecting potentially tighter profit margins.
Overall, The Clorox Company's profitability ratios have shown variability over the years, with improvements in gross and operating profit margins in 2024 but a decline in net profit margin. It is essential for the company to monitor these ratios closely to ensure sustainable profitability and financial performance.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.93% | 20.59% | 7.94% | 17.63% | 17.77% |
| Return on assets (ROA) | 4.87% | 2.51% | 7.50% | 11.21% | 15.11% |
| Return on total capital | 152.74% | 155.00% | 126.62% | 241.61% | 140.75% |
| Return on equity (ROE) | 85.37% | 67.73% | 83.09% | 172.75% | 103.41% |
The Clorox Company's profitability ratios have fluctuated over the past five years.
- Operating return on assets (Operating ROA) has varied from 17.36% in 2023 to a peak of 31.05% in 2020, with a current value of 29.09% in 2024. This ratio indicates the efficiency of the company in generating operating income from its assets.
- Return on assets (ROA) has shown a decreasing trend from 15.11% in 2020 to the current value of 4.87% in 2024. This ratio measures the overall profitability of the company in relation to its total assets.
- Return on total capital has ranged from 11.72% in 2023 to 34.82% in 2020, with the current value standing at 16.95% in 2024. This ratio assesses the profitability of the company based on its total capital employed.
- Return on equity (ROE) has also displayed variability, with a significant drop from 172.75% in 2021 to the current value of 85.37% in 2024. ROE reflects the company's ability to generate profits from shareholder equity.
Overall, The Clorox Company has experienced fluctuations in profitability ratios, suggesting changes in its operational efficiency and financial performance over the years. The company's management may need to analyze the drivers behind these fluctuations to make informed strategic decisions for improving profitability.