The Clorox Company (CLX)
Financial leverage ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,512,000 | 5,577,000 | 5,497,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 27,000 | -41,000 | 60,000 | 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 |
| Financial leverage ratio | 204.15 | — | 91.62 | 17.53 | 63.79 | 111.47 | — | 27.02 | 1,939.33 | 18.83 | 18.87 | 11.08 | 15.80 | 19.78 | 17.05 | 15.41 | 8.67 | 5.79 | 6.08 | 6.84 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,512,000K ÷ $27,000K
= 204.15
The financial leverage ratio of The Clorox Company exhibits significant fluctuations over the analyzed period, reflecting changes in its capital structure and leverage management strategies.
From June 30, 2020, to December 31, 2021, the ratio demonstrated an increasing trend. Starting at 6.84 in June 2020, it slightly decreased to 5.79 by December 2020, indicating a possible reduction in leverage or risk exposure during that period. However, from March 31, 2021, onward, there was a sharp and sustained escalation in the ratio, culminating in a peak of 19.78 at the end of 2021. This suggests a substantial increase in debt relative to equity, thereby amplifying financial risk.
During 2022, the leverage ratio remained elevated, fluctuating between approximately 11.08 and 18.87, indicating persistent high leverage levels. Notably, on March 31, 2023, the ratio experienced an extraordinary spike to 1,939.33, representing an outlier that likely signifies a drastic change in accounting measures, a significant restructuring, or a data anomaly. Subsequently, the ratio decreased substantially to 27.02 by June 30, 2023, but then again increased to 111.47 at the end of 2023, illustrating continued variability and potential instability in leverage management.
In 2024, the ratio shows considerable volatility with values of 63.79 in March, 17.53 in June, and a notable rise to 91.62 in September, before the absence of data for December. By March 31, 2025, the ratio surged again to 204.15, indicating a resurgence in leverage levels.
Overall, the pattern of the financial leverage ratio indicates periods of intensified leverage, particularly in late 2021 through early 2023, with some extraordinary outliers suggesting anomalies or unique circumstances during those times. The fluctuating nature of this ratio points to strategic shifts in debt levels and equity financing, and potentially varying approaches to leverage management in response to market conditions and corporate needs.