The Clorox Company (CLX)
Pretax margin
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 943,000 | 647,000 | 546,000 | 398,000 | 360,000 | 157,000 | 151,000 | 238,000 | 130,000 | 575,000 | 538,000 | 607,000 | 579,000 | 320,000 | 559,000 | 900,000 | 1,194,000 | 1,550,000 | 1,453,000 | 1,185,000 |
| Revenue (ttm) | US$ in thousands | 7,019,000 | 7,165,000 | 7,469,000 | 7,093,000 | 7,209,000 | 7,310,000 | 7,035,000 | 7,389,000 | 7,171,000 | 7,065,000 | 7,041,000 | 7,107,000 | 7,108,000 | 7,080,000 | 7,231,000 | 7,341,000 | 7,522,000 | 7,524,000 | 7,131,000 | 6,721,000 |
| Pretax margin | 13.43% | 9.03% | 7.31% | 5.61% | 4.99% | 2.15% | 2.15% | 3.22% | 1.81% | 8.14% | 7.64% | 8.54% | 8.15% | 4.52% | 7.73% | 12.26% | 15.87% | 20.60% | 20.38% | 17.63% |
March 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $943,000K ÷ $7,019,000K
= 13.43%
The pretax margin of The Clorox Company has exhibited notable fluctuations over the observed periods. Starting at 17.63% for the fiscal quarter ending June 30, 2020, the margin increased to 20.38% by September 30, 2020, and further to 20.60% at the close of 2020. This initial period indicates strong profitability prior to a marked decline commencing in the subsequent quarters.
From March 31, 2021, onward, a downward trend is evident, with the pretax margin decreasing to 15.87%, then further to 12.26% as of June 30, 2021. This decline accelerated during the latter part of 2021, reaching a low of 4.52% by December 31, 2021, and plummeting to 1.81% in March 2022. Although there was a slight recovery in the following periods, the margin remained relatively fragile, recording values of 8.15% in March 2022, 8.54% in June 2022, and around 7.64% to 8.14% through September and December of 2022.
Entering 2023, the pretax margin continued to fluctuate at a low level, with a minimal increase to 1.81% in March, before improving to 3.22% in June and 2.15% in September. However, these figures still reflect narrow profit margins compared to prior years. During the fiscal year ending December 31, 2023, the margin remained at 2.15%. A more significant upward trend resumed in early 2024, with the margin rising to 4.99% in March, then 5.61% in June, and reaching 7.31% in September. The most recent data indicate a continued increase, with a projection of 9.03% for December 2024 and further growth to 13.43% by March 2025.
Overall, the pretax margin experienced a substantial decline starting mid-2021, reaching historically low levels in late 2021 and 2022, but has demonstrated signs of recovery in late 2023 and early 2024. The most recent trend suggests improving profitability margins, which may indicate enhanced operational efficiency or favorable market dynamics emerging after a period of significant compression.