Aureus
FRed Flag

Clorox Company (The)(CLX)

F

Financial data as of Jun 30, 2026Improving · Consumer Staples

FCF Margin5.3%Free Cash Flow / Revenue
Cash Conversion104.3%Operating CF / Net Income
Free Cash Flow$405.0M
Revenue$6.7B
Net Cash-$5.4BNet debt position
Debt / FCF15.5xElevated debt burden
Current Ratio0.66Tight short-term liquidity
YoY FCF Growth+20.8%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-2Extreme debt-to-FCF ratio (15.5x)
→
-1Current ratio below 1.0 (0.66)
→
+1Strong YoY FCF growth (20.8% YoY)
→
-0.5Highly volatile FCF (consistency: 1.46)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (104%)
  • Strong YoY FCF growth (+20.8%)

Concerns

  • Low FCF margin (5.3%)
  • Heavy debt position ($5.4B net debt, 15.5x FCF)
  • High debt-to-FCF ratio (15.5x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.0B stock-based compensation (12% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin5.3%
Net Margin8.7%
Operating CF Margin9.1%
CapEx Ratio3.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$5.4BNet debt position
Debt / FCF15.5xElevated debt burden
Current Ratio0.66Tight liquidity
Debt / Equity61.33High leverage

Quarterly FCF Trend

+20.8% YoYImproving (+20.8%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameClorox Company (The)
SectorConsumer Staples
Free Cash Flow$405.0M
Revenue$6.7B
Net Income$587.0M
Operating Cash Flow$612.0M
Capital Expenditure$207.0M
FCF Margin5.3%
Cash Conversion Rate104.3%
Net Margin8.7%
Total Debt$5.5B
Total Cash$143.0M
Net Cash-$5.4B
Current Ratio0.66
Debt / Equity61.33
Debt / FCF15.5x
YoY FCF Growth+20.8%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateJun 30, 2026
GradeF
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Consumer Staples: Nine A-Grades, Retailers Imploding

Tobacco prints 45% margins while Walmart and Costco struggle to hit 3%. The sector split is getting wider.

Sep 14, 2026
MOPMMNSTSTZ+11
Sector Report5 min read

Consumer Staples: Eight A-Grades Hiding Four Disasters

Half the sector earns A-grades on FCF margins above 14%, but Walmart, Costco, and Estée Lauder tell a different story about retail cash generation.

Jun 12, 2026
MOPMMNSTSTZ+16
Sector Report5 min read

Consumer Staples: Seven A-Grades, Four Disasters

Tobacco and beverages dominate the top. Retailers and Tyson scrape the bottom at 2% margins.

May 11, 2026
MOPMMNSTSTZ+16