The Clorox Company (CLX)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,751,000 | 5,945,000 | 6,158,000 | 6,334,000 | 6,213,000 |
| Total stockholders’ equity | US$ in thousands | 328,000 | 220,000 | 556,000 | 411,000 | 908,000 |
| Financial leverage ratio | 17.53 | 27.02 | 11.08 | 15.41 | 6.84 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,751,000K ÷ $328,000K
= 17.53
The financial leverage ratio of The Clorox Company has fluctuated over the past five years, ranging from a low of 6.84 in June 2020 to a high of 27.02 in June 2023. A higher financial leverage ratio indicates a higher level of financial risk due to increased reliance on debt financing, while a lower ratio suggests a more conservative capital structure with less debt.
In June 2024, the financial leverage ratio of The Clorox Company stands at 17.53, indicating a moderate level of leverage compared to the previous years. This implies that the company has a balanced mix of debt and equity in its capital structure.
It is important for stakeholders to monitor trends in the financial leverage ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively. A stable or decreasing ratio over time may indicate improved financial health and lower risk, while a rising ratio could signal increased financial leverage and potential concerns about debt management.