The Clorox Company (CLX)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 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 |
| Debt-to-assets ratio | 0.43 | 0.43 | 0.42 | 0.41 | 0.42 | 0.43 | 0.41 | 0.40 | 0.40 | 0.30 | 0.30 | 0.30 | 0.39 | 0.39 | 0.36 | 0.41 | 0.45 | 0.39 | 0.42 | 0.42 |
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 some fluctuations over the past several quarters. The ratio has ranged from 0.30 to 0.45 during the period from December 2019 to June 2024.
In general, a higher debt-to-assets ratio indicates that a larger portion of the company's assets are financed by debt. A ratio above 0.5 is often considered high and may signal a higher financial risk. Conversely, a lower ratio suggests that the company has a lower reliance on debt to finance its assets.
The Clorox Company's debt-to-assets ratio has generally been within a moderate range of 0.30 to 0.45, indicating a balanced capital structure where debt plays a significant but not overwhelming role in financing the company's operations. The slight fluctuations in the ratio over time may reflect changes in the company's borrowing activities, asset base, or overall financial health.
It is important to analyze this ratio in conjunction with other financial metrics and consider the company's overall financial strategy and industry benchmarks to gain a comprehensive understanding of The Clorox Company's financial leverage and risk profile.