Clorox Company (CLX)

Why negative equity

Having skimmed through the latest 10-Q and 10-K, I still don't really understand why this company has negative $309 million in equity and a market cap of $7 billion. Can anyone explain what happened here? From Google's record of the balance sheet, it looks like this company has fluctuated between negative equity for the past few years. Clarification: I know that equity = assets - liability and market cap = shares outstanding * share price. I'm looking for the fundamental reason why Clorox is so highly-valued relative to book-value. ImperfectlyInformed 22:09, May 24, 2009 (PDT)

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