The Clorox Company (CLX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 476,000 | 438,000 | 236,000 | 227,000 | 316,000 | 226,000 | 668,000 | 631,000 | 704,000 | 664,000 | 409,000 | 650,000 | 990,000 | 1,287,000 | 1,644,000 | 1,550,000 | 1,284,000 | 1,181,000 | 1,124,000 | 1,112,000 |
| Interest expense (ttm) | US$ in thousands | 90,000 | 90,000 | 92,000 | 89,000 | 90,000 | 106,000 | 103,000 | 103,000 | 106,000 | 94,000 | 98,000 | 99,000 | 99,000 | 99,000 | 98,000 | 99,000 | 99,000 | 99,000 | 99,000 | 98,000 |
| Interest coverage | 5.29 | 4.87 | 2.57 | 2.55 | 3.51 | 2.13 | 6.49 | 6.13 | 6.64 | 7.06 | 4.17 | 6.57 | 10.00 | 13.00 | 16.78 | 15.66 | 12.97 | 11.93 | 11.35 | 11.35 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $476,000K ÷ $90,000K
= 5.29
The interest coverage ratio for The Clorox Company has fluctuated over the past few quarters, indicating variations in the company's ability to cover its interest expenses with its operating income.
In the most recent quarter ending June 30, 2024, the interest coverage ratio stood at 5.29, which suggests that the company generated operating income 5.29 times more than its interest expenses in that period. This indicates a healthy ability to meet interest obligations and reflects a relatively stable financial position.
Looking at the trend over the past few quarters, there was a significant improvement in the interest coverage ratio from the low of 2.13 in March 31, 2023, to the recent peak of 5.29 in June 30, 2024. This upward trend may signify improved financial performance and better management of debt obligations by the company.
The company's historical interest coverage ratios have generally been above 3, indicating a consistent ability to cover interest payments. However, the ratio experienced fluctuations, with some quarters showing stronger coverage than others. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and its ability to manage debt effectively.