The Clorox Company (CLX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 740,000 | 1,039,000 | 746,000 | 649,000 | 501,000 | 463,000 | 262,000 | 251,000 | 355,000 | 254,000 | 692,000 | 654,000 | 707,000 | 672,000 | 415,000 | 655,000 | 994,000 | 1,288,000 | 1,645,000 | 1,549,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 230.53% | 3,848.15% | — | 1,081.67% | 152.74% | 508.79% | 494.34% | — | 161.36% | 8,466.67% | 215.58% | 200.61% | 127.16% | 168.00% | 132.59% | 177.99% | 241.85% | 173.35% | 138.94% | 138.92% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $740,000K ÷ ($—K + $321,000K)
= 230.53%
The analysis of The Clorox Company's return on total capital (ROTC) over the period from September 2020 through June 2025 reveals significant fluctuations and notable periods of both stability and extraordinary variability.
From September 2020 to September 2021, the ROTC displayed a stable range, with values consistently exceeding 130%, reaching a peak of approximately 241.85% in June 2021. This high level indicates that the company maintained a strong ability to generate substantial returns relative to its total capital during this period.
In late 2021 and early 2022, the ROTC experienced a decline, with values dropping back below 170% and reaching about 127.16% in June 2022. This decline suggests a period of reduced efficiency or increased capital base that affected overall returns.
Between September 2022 and March 2023, the ROTC showed a dramatic and anomalous increase, culminating in an extraordinarily high value of approximately 8,466.67% in March 2023. Such an extraordinary figure likely indicates a one-time event, such as a significant restructuring, asset sale, or accounting adjustment, rather than a sustainable operational performance measure.
In subsequent months, the ROTC fluctuated sharply, with values returning to more manageable levels—such as 161.36% in June 2023 and 494.34% in December 2023. Notably, the most recent data from March 2024 indicates a further substantial increase to approximately 508.79%, followed by a decline to approximately 152.74% in June 2024. The September 2024 figure is unavailable, but the March 2025 value spikes dramatically again to approximately 3,848.15%, before decreasing to around 230.53% in June 2025.
Overall, the fluctuations in the ROTC reflect periods of stable high returns interspersed with episodes of extreme variability. The extraordinary peaks, particularly in early 2023 and again in March 2025, are indicative of extraordinary items or non-recurring events affecting the reported ratios, rather than reflecting operational profitability in a conventional sense. Consequently, the long-term trend suggests that while The Clorox Company typically maintains high returns on total capital, the recent volatility and exceptionally high figures warrant cautious interpretation, emphasizing the importance of contextual factors behind such anomalies.