The Clorox Company is a diversified firm that develops, manufactures, and markets premium quality household products, architectural coatings, and food service products. In addition to the liquid bleach product from which it takes its name, the company markets the leading line of dry salad mixes. Founded in 1913, the Clorox Company has become an international company with sales in excess of \(\$ 1\) billion. Their 1986 annual report included a 10 -year financial summary, from which the following information has been extracted:

Discuss the format of The Clorox Company's presentation relative to the illustrations in the chapter. Then evaluate the company's performance over the fouryear period as it is disclosed by the above data.

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(In thousands, except per-share data) Operations Net sales Percent change Net earnings Percent change 1986 1985 1984 1983 $1,089,070 $1,054,847 $974,566 $913,807 +3.2 +8.2 +6.6 +5.4 95,610 86,124 79,709 65,507 +11.0 +8.0 +21.7 +45.2 Common Stock Per share: Earnings from continuing operations $3.60 $3.27 $3.09 $2.72 Earnings from discontinued operations Net earnings Assuming no dilution $3.60 $3.27 $3.09 $2.72 Assuming full dilution $3.50 $3.17 $3.01 $2.64 Dividends $1.40 $1.24 $1.08 $ .95 Shareholders' equity at end of year 20.61 18.37 16.40 13.48 Other Data Working capital $240,180 $203,011 $144,424 $117,333 Total assets 849,225 778,062 701,396 603,875 Long-term debt 38,151 38,945 43,174 72,597 Shareholders' equity 549,793 485,856 431,313 325,998 Current ratio 2.4 2.0 1.8 1.7 Percent return on net sales-continuing operations 8.8 8.2 8.2 7.2 Percent return on average shareholders' equity 18.5 18.8 20.2 21.6