The Clorox Company (CLX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 5,850,000 | 5,459,000 | 5,397,000 |
| 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 |
| Financial leverage ratio | 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 | 8.42 | 9.84 | 9.81 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,751,000K ÷ $328,000K
= 17.53
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. Looking at the data provided for The Clorox Company, we can see significant fluctuations in the financial leverage ratio over the past few quarters.
The financial leverage ratio for The Clorox Company has shown a wide range of values, with a peak of 1,939.33 in the first quarter of 2023, indicating an exceptionally high level of debt relative to equity at that time. This could be due to unusual circumstances such as significant debt taken on for a specific purpose or a temporary distortion in the financials.
Subsequently, the financial leverage ratio decreased substantially in the following quarters, suggesting a reduction in the company's debt relative to its equity. However, the ratio remained relatively high compared to historical levels in some quarters, such as December 2023 and March 2024.
The fluctuations in The Clorox Company's financial leverage ratio may indicate changing capital structure decisions, such as borrowing to fund investments or paying down debt to reduce financial risk. It is essential for investors and analysts to delve deeper into the company's financial statements and disclosures to understand the reasons behind these variations and assess the implications for the company's financial health and risk profile.