The Clorox Company (CLX)

Solvency ratios

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
Debt-to-assets ratio 0.43 0.43 0.42 0.41 0.42 0.43 0.41 0.40 0.40 0.30 0.30 0.30 0.39 0.39 0.36 0.41 0.45 0.39 0.42 0.42
Debt-to-capital ratio 0.88 0.96 0.98 1.02 0.92 1.00 0.89 0.88 0.82 0.83 0.86 0.84 0.86 0.77 0.68 0.71 0.75 0.77 0.80 0.81
Debt-to-equity ratio 7.56 27.25 46.77 — 11.26 825.33 7.71 7.59 4.45 4.72 6.03 5.12 6.04 3.34 2.10 2.49 3.06 3.29 4.12 4.16
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

The solvency ratios of The Clorox Company show a varying trend over the past several quarters. The debt-to-assets ratio has been relatively stable, hovering between 0.30 and 0.45, indicating that the company finances a significant portion of its assets with debt.

The debt-to-capital ratio, on the other hand, has experienced fluctuations ranging from 0.68 to 1.02. This ratio peaked in the most recent quarter at 1.02, suggesting a higher reliance on debt to fund the company's operations.

The debt-to-equity ratio has shown significant volatility, with values ranging from 2.10 to 825.33. The spike in the ratio in some quarters indicates a notable increase in debt relative to equity, which can indicate potential financial risk.

Finally, the financial leverage ratio has also displayed significant fluctuations, ranging from 5.79 to 1,939.33. This metric reached an exceptionally high value in one quarter, indicating a substantial level of financial leverage for the company.

Overall, while the debt-to-assets ratio has been relatively stable, the debt-to-capital, debt-to-equity, and financial leverage ratios show more volatility, suggesting varying levels of financial risk and leverage for The Clorox Company during the analyzed period.

Coverage ratios

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
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

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a company is more capable of servicing its debt.

Based on the provided data for The Clorox Company, we observe fluctuations in the interest coverage ratio over the past few quarters. In the most recent quarter ended June 30, 2024, the interest coverage ratio stood at 5.29, which suggests that the company's operating income was sufficient to cover its interest expenses 5.29 times over.

Looking at the historical trend, we see that the interest coverage ratio has generally been above 2, indicating a healthy ability to meet interest payments. The ratio peaked at 16.78 in the quarter ended December 31, 2020, which reflects a very strong capacity to cover interest obligations.

It is worth noting that there have been periods of lower interest coverage ratios, such as the quarter ended March 31, 2023, when the ratio was 2.13. This could raise concerns about the company's ability to cover interest expenses with its operating income during that period.

Overall, The Clorox Company has demonstrated a generally solid ability to fulfill its interest payment obligations, with occasional periods of lower coverage. Investors and stakeholders should continue monitoring the interest coverage ratio along with other financial metrics to assess the company's financial health and debt servicing ability.