The Clorox Company (CLX)
Return on assets (ROA)
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 280,000 | 240,000 | 80,000 | 86,000 | 149,000 | 74,000 | 435,000 | 405,000 | 462,000 | 458,000 | 247,000 | 437,000 | 710,000 | 923,000 | 1,225,000 | 1,151,000 | 939,000 | 870,000 | 816,000 | 813,000 |
| Total assets | US$ in thousands | 5,751,000 | 5,805,000 | 5,908,000 | 5,991,000 | 5,945,000 | 5,818,000 | 6,045,000 | 6,153,000 | 6,158,000 | 6,322,000 | 6,190,000 | 6,274,000 | 6,334,000 | 6,441,000 | 6,855,000 | 6,777,000 | 6,213,000 | 5,850,000 | 5,459,000 | 5,397,000 |
| ROA | 4.87% | 4.13% | 1.35% | 1.44% | 2.51% | 1.27% | 7.20% | 6.58% | 7.50% | 7.24% | 3.99% | 6.97% | 11.21% | 14.33% | 17.87% | 16.98% | 15.11% | 14.87% | 14.95% | 15.06% |
June 30, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $280,000K ÷ $5,751,000K
= 4.87%
The Return on Assets (ROA) of The Clorox Company has shown fluctuations over the past several quarters. The ROA provides insight into how effectively the company is utilizing its assets to generate profits. Analyzing the data from the table, we can see that the ROA has varied from a low of 1.35% in December 2023 to a high of 17.87% in March 2021.
The ROA increased steadily from December 2019 to March 2020, reaching 17.87%, indicating the company was efficiently utilizing its assets to generate profits during that period. However, post-March 2020, the ROA experienced a decline and reached its lowest point of 1.35% in December 2023. This could suggest challenges in asset management and profitability during that time period.
The ROA then started to improve, reaching 4.87% in June 2024, showing a slight recovery in asset efficiency and profitability. It is important for The Clorox Company to closely monitor its asset management strategies to ensure sustainable profitability in the future.
Overall, the fluctuations in The Clorox Company's ROA indicate the need for continuous assessment and adjustment of asset management practices to enhance profitability and shareholder value.