Investment Thesis
Clorox demonstrates adequate operational profitability with solid margins and positive free cash flow, but faces critical balance sheet deterioration evidenced by negative stockholders' equity of -$125M and a dangerously low current ratio of 0.74x. The combination of high leverage (2.5B long-term debt against minimal equity cushion), weak liquidity, and stagnant revenue growth (+0.2% YoY) suggests elevated financial distress risk that outweighs operational competence.
CLX Strengths
- Solid gross margin of 42.5% and operating margin of 10.4% demonstrate pricing power and operational efficiency in specialty chemicals
- Strong free cash flow generation of $326M with 10.5% FCF margin provides debt servicing capacity despite leverage concerns
- Adequate interest coverage ratio of 6.7x indicates near-term ability to service debt obligations
CLX Risks
- Negative stockholders' equity of -$125M indicates liabilities exceed assets and suggests either previous losses or aggressive capital allocation that eroded equity base
- Severe liquidity crisis with current ratio of 0.48x quick ratio and only $227M cash against substantial debt obligations creates refinancing risk
- Stagnant revenue growth of +0.2% YoY combined with net income decline of -1.7% YoY indicates business maturity with minimal expansion potential to improve leverage metrics
Key Metrics to Watch
- Stockholders' equity trend and path to positive equity recovery
- Current ratio and cash position to assess liquidity sustainability
- Revenue growth acceleration and net income margin stability amid debt burden
CLX Financial Metrics
CLX Profitability Ratios
CLX Balance Sheet & Liquidity
CLX 5-Year Financial Trend
5-Year Trend Summary: CLOROX CO /DE/'s revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $1.20 reflects profitable operations.
CLX Growth Metrics (YoY)
CLX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.7B | $157.0M | $1.29 |
| Q1 2026 | $1.4B | $80.0M | $0.65 |
| Q3 2025 | $1.7B | -$51.0M | $-0.41 |
| Q2 2025 | $1.7B | $93.0M | $0.75 |
| Q1 2025 | $1.4B | $22.0M | $0.17 |
| Q3 2024 | $1.8B | -$27.0M | $-0.22 |
| Q2 2024 | $1.7B | $93.0M | $0.75 |
| Q1 2024 | $1.4B | $22.0M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CLX Capital Allocation
CLX SEC Filings
Access official SEC EDGAR filings for CLOROX CO /DE/ (CIK: 0000021076)