The Clorox Company (CLX)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 280,000 | 149,000 | 462,000 | 710,000 | 939,000 |
| Total assets | US$ in thousands | 5,751,000 | 5,945,000 | 6,158,000 | 6,334,000 | 6,213,000 |
| ROA | 4.87% | 2.51% | 7.50% | 11.21% | 15.11% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $280,000K ÷ $5,751,000K
= 4.87%
The return on assets (ROA) for The Clorox Company has shown a downward trend over the past five years, decreasing from 15.11% in June 2020 to 4.87% in June 2024. This indicates that the company's ability to generate profits from its assets has weakened over this period.
The ROA of 4.87% in June 2024 suggests that for every dollar of assets the company possesses, it generated a profit of $0.0487. This may reflect challenges in effectively utilizing its assets to generate earnings.
It is important for The Clorox Company to closely evaluate its asset management strategies and operational efficiency to improve its ROA and enhance overall financial performance in the future.