The Clorox Company (CLX)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 328,000 | 220,000 | 556,000 | 411,000 | 908,000 |
| Debt-to-equity ratio | 7.56 | 11.26 | 4.45 | 6.04 | 3.06 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,481,000K ÷ $328,000K
= 7.56
The debt-to-equity ratio of The Clorox Company has fluctuated over the past five years, indicating varying levels of leverage and financial risk.
In 2020, the ratio was 3.06, suggesting a moderate level of debt relative to equity. However, in 2021, the ratio increased to 6.04, indicating a significant rise in leverage, possibly due to increased borrowing or a decrease in equity.
By 2022, the ratio decreased to 4.45, showing a slight improvement in the company's debt position compared to the previous year. However, in 2023, the ratio surged to 11.26, which indicates a substantial increase in debt compared to equity and raises concerns about the company's financial stability.
Most recently, in 2024, the debt-to-equity ratio further increased to 7.56, suggesting that the company's debt levels remain relatively high compared to its equity, which may pose risks in terms of financial flexibility and solvency.
Overall, the fluctuating trend of The Clorox Company's debt-to-equity ratio indicates that the company has been managing its capital structure dynamically, but investors and stakeholders should monitor the ratio closely to assess the company's financial health and risk exposure.