CLX presents deeply negative liquidation recovery to equity across all three MFFAIS metrics (CLV -$4.8B, LLV -$4.1B, OLV -$3.5B as of 3/31/2026). The capital structure deteriorated materially during the nine months ended March 31, 2026. Total GAAP stockholders' equity attributable to CLX is negative at -$67M, with total equity including NCI of only $92M against total liabilities of $6.34B. Under the liquidation lens: cash of $1.19B recovers at par; AR of $671M recovers ~$605-637M at 90-95%; inventory of $588M recovers ~$353M at 60%; PP&E net $1.24B (gross ~$4.28B, accumulated depreciation $3.04B) recovers ~$617-866M at 50-70% of net; intangibles (goodwill $1.23B, other intangibles $49B, operating lease ROU $355M) recover $0 on goodwill and other intangibles under liquidation conventions. Against these haircut assets stand $6.34B in liabilities at face value, including $1.59B of commercial paper, $2.49B of long-term debt, $1.48B of accounts payable and accrued liabilities, $408M of operating lease liabilities (current $85M + non-current $323M), and $356M of other non-current liabilities. The critical balance-sheet events this quarter: (1) CLX drew $1.59B of commercial paper to fund the $476M Glad/P&G Venture Agreement termination payment (paid March 2, 2026) and to pre-fund the GOJO acquisition that closed April 1, 2026; (2) current liabilities exceeded current assets by $504M at period end, a working capital deficit driven by the commercial paper build; (3) subsequent to quarter-end, CLX drew $1.25B from the Delayed Draw Term Credit Agreement for the GOJO close, materially increasing total debt beyond what is reflected in this balance sheet. The GOJO acquisition (closed 4/1/2026) is discussed extensively in MD&A but does not appear on this balance sheet. Goodwill, intangibles, and associated debt from GOJO will appear in Q4 FY2026 filing. Operating cash flow declined sharply to $282M for the nine-month period vs. $687M in the prior-year period, largely due to the $476M Venture Agreement cash payment and lower earnings. The asset base is predominantly intangible and brand-value-dependent; liquidation recovery to equity is deeply negative and worsening due to the debt-funded acquisition strategy.
▼ Community Notes