The Clorox Company (CLX)
Debt-to-equity 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-equity ratio | 7.56 | 27.25 | 46.77 | — | 11.26 | 825.33 | 7.71 | 7.59 | 4.45 | 4.72 | 6.03 | 5.12 | 6.04 | 3.34 | 2.10 | 2.49 | 3.06 | 3.29 | 4.12 | 4.16 |
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 significantly over the past several quarters, indicating varying levels of leverage and financial risk. The ratio reached a peak of 825.33 in the first quarter of 2023, suggesting a high reliance on debt to finance the company's operations during that period. This exceptionally high ratio could raise concerns about the company's ability to manage its debt levels and meet its financial obligations.
In the subsequent quarters, the debt-to-equity ratio decreased significantly, indicating a reduction in the company's debt relative to its equity. However, in the following quarters, the ratio rose again, albeit to a lesser extent, suggesting a return to higher levels of leverage compared to the previous period.
Overall, the fluctuating trend in the debt-to-equity ratio of The Clorox Company reflects changes in its capital structure and financial strategy. Investors and stakeholders may need to closely monitor this ratio to assess the company's financial stability and risk management practices.