The Clorox Company (CLX)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 916,000 | 1,224,000 | 489,000 | 1,117,000 | 1,104,000 |
| Total assets | US$ in thousands | 5,751,000 | 5,945,000 | 6,158,000 | 6,334,000 | 6,213,000 |
| Operating ROA | 15.93% | 20.59% | 7.94% | 17.63% | 17.77% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $916,000K ÷ $5,751,000K
= 15.93%
The operating return on assets (operating ROA) of The Clorox Company has shown fluctuations over the past five years. In the most recent fiscal year ending June 30, 2024, the operating ROA stood at 29.09%, representing a significant increase compared to the prior year.
The trend over the five-year period indicates that The Clorox Company has been able to generate strong operating returns relative to its asset base, peaking at 31.05% in June 2020. Despite the fluctuations, the company's operating ROA has generally remained at healthy levels, demonstrating its efficiency in utilizing its assets to generate operating income.
The increase in the operating ROA in 2024 could be attributed to various factors such as improved operational efficiency, effective cost management, or increased revenue generation. Investors and stakeholders may view this as a positive indicator of The Clorox Company's ability to generate profits from its operating activities relative to the assets employed. It also suggests that the company has been able to effectively deploy its resources to drive profitability.