The Clorox Company (CLX)
Financial leverage ratio
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,561,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 321,000 | 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 |
| Financial leverage ratio | 17.32 | 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 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,561,000K ÷ $321,000K
= 17.32
The financial leverage ratio of The Clorox Company exhibits substantial fluctuations over the analyzed period, indicating notable shifts in the company’s reliance on debt relative to its equity base.
From September 30, 2020, through December 31, 2021, the ratio generally remained within a moderate to high range, starting at 6.08 and gradually increasing to 19.78. This upward trend suggests a progressive increase in leverage, possibly reflecting strategic borrowing to support expansion, operational needs, or restructuring initiatives.
A significant anomaly is observed in the ratio recorded on March 31, 2023, where it jumps sharply to 1,939.33. Such an extraordinary spike typically indicates a fundamental change in the financial structure, such as a substantial debt issuance, a significant revaluation, or a one-time accounting adjustment rather than a sustained leverage level. Subsequent periods show a decline to more manageable levels, with the ratio decreasing to 27.02 as of June 30, 2023, below the extreme peak, but still indicative of high leverage.
The data for December 31, 2023, indicates a ratio of 111.47, again reflecting heightened leverage, potentially driven by extraordinary financial activities or accounting adjustments. In the following quarters, the ratio exhibits variability, with a notable reduction to 17.53 in June 2024, followed by an increase to 91.62 in September 2024, and a further significant rise to 204.15 by March 2025. These fluctuations highlight ongoing volatility in the company’s leverage position.
Overall, the historical pattern of the financial leverage ratio suggests periods of increasing leverage, punctuated by exceptional surges that likely correspond to extraordinary financial events or structural changes. This volatility underscores the importance of examining the underlying financial transactions and accounting policies during these periods to fully understand the factors influencing the leverage ratios.