The Clorox Company (CLX)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 398,000 | 238,000 | 607,000 | 900,000 | 1,185,000 |
| Revenue | US$ in thousands | 7,093,000 | 7,389,000 | 7,107,000 | 7,341,000 | 6,721,000 |
| Pretax margin | 5.61% | 3.22% | 8.54% | 12.26% | 17.63% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $398,000K ÷ $7,093,000K
= 5.61%
The pretax margin of The Clorox Company has exhibited a declining trend over the past five years. The company's pretax margin was relatively high at 17.91% in 2020, but it has been decreasing steadily since then. The pretax margin decreased to 12.32% in 2021, further dropped to 8.55% in 2022, then to 3.10% in 2023, and finally to 5.46% in 2024.
This declining trend in pretax margin suggests that The Clorox Company's profitability before taxes has been under pressure in recent years. It is essential for the company to closely monitor and address the factors contributing to this decline in order to improve its financial performance in the future. The management may need to evaluate their cost structure, pricing strategies, and operating efficiency to enhance profitability and sustain long-term growth.