The Clorox Company (CLX)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.88 | 0.96 | 0.98 | 1.02 | 0.92 | 1.00 | 0.89 | 0.88 | 0.82 | 0.83 | 0.86 | 0.84 | 0.86 | 0.77 | 0.68 | 0.71 | 0.75 | 0.77 | 0.80 | 0.81 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,481,000K ÷ ($2,481,000K + $328,000K)
= 0.88
The debt-to-capital ratio of The Clorox Company has fluctuated over the past several quarters, ranging from 0.68 to 1.02. The ratio indicates the proportion of a company's capital that is financed by debt. A higher ratio suggests a higher level of debt relative to total capital, which may indicate increased financial risk.
From the trend observed in the data, we can see that the debt-to-capital ratio has generally been increasing since the beginning of 2021. This upward trend raises concerns regarding the company's leverage and ability to meet its financial obligations. The ratio peaked at 1.02 in the September 2023 quarter, indicating a high reliance on debt financing at that point in time.
It is important for investors and stakeholders to closely monitor changes in the debt-to-capital ratio, as significant increases may signal potential financial challenges for the company. Additionally, a high debt-to-capital ratio can impact the company's credit rating and borrowing costs. Further analysis and consideration of other financial metrics are recommended to gain a comprehensive understanding of The Clorox Company's financial health.