The Clorox Company (CLX)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,481,000 | 2,477,000 | 2,474,000 | 2,484,000 | 2,780,000 |
| Total assets | US$ in thousands | 5,751,000 | 5,945,000 | 6,158,000 | 6,334,000 | 6,213,000 |
| Debt-to-assets ratio | 0.43 | 0.42 | 0.40 | 0.39 | 0.45 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,481,000K ÷ $5,751,000K
= 0.43
The debt-to-assets ratio of The Clorox Company has shown a fluctuating trend over the past five years, ranging from 0.39 to 0.45. In the most recent year, as of June 30, 2024, the ratio stood at 0.43. This implies that 43% of the company's assets are financed through debt, while the remaining 57% are financed through equity.
Despite some variability, the overall trend suggests that the company has been reasonably successful in managing its debt levels in relation to its total assets. A lower ratio indicates lower financial risk and greater solvency, while a higher ratio may suggest higher financial risk due to increased reliance on debt financing. It is important for investors and creditors to monitor this ratio over time to assess the company's ability to meet its debt obligations and sustain its financial health.