Problem 1

Go to the link http://annualreport.thecloroxcompany.com/ and open the financial statements for The Clorox Company. Provide the following information. Refer to Page 269-271 in the text for assistance.

1.      Review the years 2014, 2015 & 2016 and calculate Gross Profit margin and Net Profit margin for each year. What % sales growth did the company experience from 2014 to 2015 & 2015 to 2016?

2.      Calculate the following ratios for 2015 & 2016:

Current Ratio

Average Collection Period (DSO’s)

Months Inventory Held

Days Payable Outstanding

Cash Flow Margin

Times Interest Earned

Effective Tax Rate

3.      How much cash was provided by Operating Activities in 2014, 2015 & 2016?

4.      From the Statement of Cash Flows, briefly comment on how you feel the company was able to spend about $950 Million on debt repayment, treasury-stock purchase & dividend payments in 2016.

5.      Retained Earnings increased from $1,561 million in 2013 to $2,163 million in 2016.  Identify the transactions that are included in this change in Retained Earnings.

6.      Write a very brief (one or two paragraphs) opinion on how you feel the company is performing overall.