The Clorox Company (CLX)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,968,000 | 916,000 | 1,224,000 | 489,000 | 1,117,000 |
| Total assets | US$ in thousands | 5,561,000 | 5,751,000 | 5,945,000 | 6,158,000 | 6,334,000 |
| Operating ROA | 35.39% | 15.93% | 20.59% | 7.94% | 17.63% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $1,968,000K ÷ $5,561,000K
= 35.39%
The operating return on assets (Operating ROA) for The Clorox Company has exhibited notable fluctuations over the specified periods from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the Operating ROA was 17.63%, indicating a solid efficiency in generating operating earnings from its asset base during that period. However, this metric declined significantly in the following year, reaching 7.94% as of June 30, 2022. Such a decline might suggest operational challenges or a reduction in operating profitability relative to the asset base during that time.
Subsequently, a considerable recovery is observed with the Operating ROA increasing to 20.59% by June 30, 2023. This rebound indicates improved operational efficiency and higher profitability relative to the company’s assets. Nonetheless, in the fiscal year ending June 30, 2024, the Operating ROA decreased again to 15.93%, signifying a slight deterioration in operating performance or potential asset base changes during that period.
Looking forward to June 30, 2025, the Operating ROA is projected to rise sharply to 35.39%. This substantial increase suggests an expectation of significantly enhanced operational profitability relative to assets, which could be driven by strategic initiatives, product line improvements, cost efficiencies, or other operational enhancements.
Overall, the trend demonstrates periods of volatility with a recent strong upward movement, indicating a generally positive outlook on operational efficiency if the projected figures materialize. The fluctuation underscores the importance of monitoring underlying operational factors affecting asset utilization and profitability.