The Clorox Company (CLX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 476,000 | 438,000 | 236,000 | 227,000 | 316,000 | 226,000 | 668,000 | 631,000 | 704,000 | 664,000 | 409,000 | 650,000 | 990,000 | 1,287,000 | 1,644,000 | 1,550,000 | 1,284,000 | 1,181,000 | 1,124,000 | 1,112,000 |
| Long-term debt | US$ in thousands | 2,481,000 | 2,480,000 | 2,479,000 | 2,478,000 | 2,477,000 | 2,476,000 | 2,476,000 | 2,475,000 | 2,474,000 | 1,887,000 | 1,886,000 | 1,885,000 | 2,484,000 | 2,483,000 | 2,483,000 | 2,781,000 | 2,780,000 | 2,288,000 | 2,288,000 | 2,287,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 908,000 | 695,000 | 555,000 | 550,000 |
| Return on total capital | 16.95% | 17.04% | 9.32% | 9.30% | 11.72% | 9.12% | 23.88% | 22.53% | 23.23% | 29.03% | 18.60% | 28.85% | 34.20% | 39.89% | 44.83% | 39.78% | 34.82% | 39.59% | 39.54% | 39.20% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $476,000K ÷ ($2,481,000K + $328,000K)
= 16.95%
The Return on Total Capital for The Clorox Company has varied over the past several quarters, ranging from a low of 9.12% in March 2023 to a high of 44.83% in March 2021. The ratio measures the company's ability to generate profits from the capital invested in the business.
In recent quarters, the Return on Total Capital has generally been on an upward trend, with some fluctuations. The company saw a significant peak in performance in the March 2021 quarter, followed by a slight decline before showing an upward trend again in the most recent June 2024 quarter.
Overall, The Clorox Company has shown the ability to efficiently utilize its capital and generate returns for its investors, although the variability in the ratio suggests the company may be exposed to changing market conditions or internal factors affecting its profitability.