The Clorox Company (CLX)
Return on equity (ROE)
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 810,000 | 694,000 | 457,000 | 357,000 | 280,000 | 240,000 | 82,000 | 88,000 | 151,000 | 76,000 | 435,000 | 405,000 | 462,000 | 458,000 | 247,000 | 437,000 | 710,000 | 923,000 | 1,225,000 | 1,151,000 |
| Total stockholders’ equity | US$ in thousands | 321,000 | 27,000 | -41,000 | 60,000 | 328,000 | 91,000 | 53,000 | -37,000 | 220,000 | 3,000 | 321,000 | 326,000 | 556,000 | 400,000 | 313,000 | 368,000 | 411,000 | 743,000 | 1,184,000 | 1,115,000 |
| ROE | 252.34% | 2,570.37% | — | 595.00% | 85.37% | 263.74% | 154.72% | — | 68.64% | 2,533.33% | 135.51% | 124.23% | 83.09% | 114.50% | 78.91% | 118.75% | 172.75% | 124.23% | 103.46% | 103.23% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $810,000K ÷ $321,000K
= 252.34%
The analysis of The Clorox Company’s return on equity (ROE) over the period from September 2020 through June 2025 reveals significant fluctuations characterized by periods of remarkable growth and variability, which warrant close examination.
Initially, the ROE remained consistently high, exceeding 100% from September 2020 through September 2021, with values ranging from approximately 103% to 172.75%. This indicates robust profitability relative to shareholders' equity during this period. However, a notable decline was observed toward the end of 2021, with ROE decreasing to 78.91% by December 2021, and further fluctuating in 2022, reaching a low of 83.09% in June 2022 before resurging to 124.23% in September 2022.
A dramatic anomaly is evident beginning in March 2023, with the ROE soaring to an extraordinary 2,533.33%, which is likely attributable to extraordinary items, pivotal changes in accounting policies, or extraordinary earnings impacts rather than sustainable operational performance. This peak is followed by a decline to 68.64% in June 2023.
Subsequently, the ROE demonstrates significant upward momentum, reaching 154.72% by December 2023 and further escalating to 263.74% in March 2024. The most recent figures indicate a substantial spike to 595.00% in September 2024 and then to an even higher 2,570.37% in March 2025, before a decline to 252.34% in June 2025.
These extraordinary fluctuations, particularly the extreme spikes observed in early 2023 and 2025, suggest periods of anomalous profitability, possibly driven by extraordinary gains, accounting adjustments, or other non-recurring factors. The high ROE levels, especially those exceeding 1,000%, are not typically indicative of ongoing operational efficiency but rather reflect specific circumstances inflating net income or reducing shareholders’ equity artificially.
In summary, while The Clorox Company's historical ROE trends indicate periods of strong profitability, the exceptional and episodic nature of the most recent ratios underscores the importance of scrutinizing underlying factors contributing to these fluctuations. Investors and analysts should approach these figures with caution, considering the potential impact of non-recurring items and accounting anomalies that may be inflating the reported ratios.