Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Colgate-Palmolive Co., balance sheet: inventory

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Raw materials and supplies	666)	505)	454)	305)	253)
Work-in-process	48)	39)	45)	49)	37)
Finished goods	1,508)	1,248)	1,256)	1,056)	960)
Inventories, net	2,222)	1,792)	1,755)	1,410)	1,250)
Non-current inventory, net	(148)	(100)	(82)	(10)	—)
Current inventories, net	2,074)	1,692)	1,673)	1,400)	1,250)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Download chart

Item	Description	The company
Current inventories, net	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Colgate-Palmolive Co. current inventories, net increased from 2020 to 2021 and from 2021 to 2022.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Current Inventories, Net
Current inventories, net at LIFO (as reported)	2,074)	1,692)	1,673)	1,400)	1,250)
Add: Inventory LIFO reserve	146)	60)	65)	62)	63)
Current inventories, net at FIFO (adjusted)	2,220)	1,752)	1,738)	1,462)	1,313)
Adjustment to Current Assets
Current assets (as reported)	5,113)	4,397)	4,338)	4,179)	3,793)
Add: Inventory LIFO reserve	146)	60)	65)	62)	63)
Current assets (adjusted)	5,259)	4,457)	4,403)	4,241)	3,856)
Adjustment to Total Assets
Total assets (as reported)	15,731)	15,040)	15,920)	15,034)	12,161)
Add: Inventory LIFO reserve	146)	60)	65)	62)	63)
Total assets (adjusted)	15,877)	15,100)	15,985)	15,096)	12,224)
Adjustment to Total Colgate-Palmolive Company Shareholders’ Equity
Total Colgate-Palmolive Company shareholders’ equity (as reported)	401)	609)	743)	117)	(102)
Add: Inventory LIFO reserve	146)	60)	65)	62)	63)
Total Colgate-Palmolive Company shareholders’ equity (adjusted)	547)	669)	808)	179)	(39)
Adjustment to Net Income Attributable To Colgate-Palmolive Company
Net income attributable to Colgate-Palmolive Company (as reported)	1,785)	2,166)	2,695)	2,367)	2,400)
Add: Increase (decrease) in inventory LIFO reserve	86)	(5)	3)	(1)	—)
Net income attributable to Colgate-Palmolive Company (adjusted)	1,871)	2,161)	2,698)	2,366)	2,400)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Colgate-Palmolive Co. inventory value on Dec 31, 2022 would be $2,220) (in millions) if the FIFO inventory method was used instead of LIFO. Colgate-Palmolive Co. inventories, valued on a LIFO basis, on Dec 31, 2022 were $2,074). Colgate-Palmolive Co. inventories would have been $146) higher than reported on Dec 31, 2022 if the FIFO method had been used instead.

Colgate-Palmolive Co., Financial Data: Reported vs. Adjusted

Download chart

Colgate-Palmolive Co., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current Ratio
Reported current ratio (LIFO)	1.28	1.09	0.99	1.03	1.14
Adjusted current ratio (FIFO)	1.31	1.10	1.00	1.05	1.15
Net Profit Margin
Reported net profit margin (LIFO)	9.93%	12.43%	16.36%	15.08%	15.44%
Adjusted net profit margin (FIFO)	10.41%	12.40%	16.38%	15.08%	15.44%
Total Asset Turnover
Reported total asset turnover (LIFO)	1.14	1.16	1.03	1.04	1.28
Adjusted total asset turnover (FIFO)	1.13	1.15	1.03	1.04	1.27
Financial Leverage
Reported financial leverage (LIFO)	39.23	24.70	21.43	128.50	—
Adjusted financial leverage (FIFO)	29.03	22.57	19.78	84.34	—
Return on Equity (ROE)
Reported ROE (LIFO)	445.14%	355.67%	362.72%	2,023.08%	—
Adjusted ROE (FIFO)	342.05%	323.02%	333.91%	1,321.79%	—
Return on Assets (ROA)
Reported ROA (LIFO)	11.35%	14.40%	16.93%	15.74%	19.74%
Adjusted ROA (FIFO)	11.78%	14.31%	16.88%	15.67%	19.63%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Colgate-Palmolive Co. adjusted current ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Colgate-Palmolive Co. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Colgate-Palmolive Co. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Colgate-Palmolive Co. adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Colgate-Palmolive Co. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Colgate-Palmolive Co. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Current assets	5,113)	4,397)	4,338)	4,179)	3,793)
Current liabilities	4,004)	4,051)	4,404)	4,038)	3,341)
Liquidity Ratio
Current ratio¹	1.28	1.09	0.99	1.03	1.14
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	5,259)	4,457)	4,403)	4,241)	3,856)
Current liabilities	4,004)	4,051)	4,404)	4,038)	3,341)
Liquidity Ratio
Adjusted current ratio²	1.31	1.10	1.00	1.05	1.15

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 5,113 ÷ 4,004 = 1.28

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,259 ÷ 4,004 = 1.31

Download chart

Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Colgate-Palmolive Co. adjusted current ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Profitability Ratio
Net profit margin¹	9.93%	12.43%	16.36%	15.08%	15.44%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	1,871)	2,161)	2,698)	2,366)	2,400)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Profitability Ratio
Adjusted net profit margin²	10.41%	12.40%	16.38%	15.08%	15.44%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 1,785 ÷ 17,967 = 9.93%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 1,871 ÷ 17,967 = 10.41%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Colgate-Palmolive Co. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Total assets	15,731)	15,040)	15,920)	15,034)	12,161)
Activity Ratio
Total asset turnover¹	1.14	1.16	1.03	1.04	1.28
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Adjusted total assets	15,877)	15,100)	15,985)	15,096)	12,224)
Activity Ratio
Adjusted total asset turnover²	1.13	1.15	1.03	1.04	1.27

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 17,967 ÷ 15,731 = 1.14

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 17,967 ÷ 15,877 = 1.13

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Colgate-Palmolive Co. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	15,731)	15,040)	15,920)	15,034)	12,161)
Total Colgate-Palmolive Company shareholders’ equity	401)	609)	743)	117)	(102)
Solvency Ratio
Financial leverage¹	39.23	24.70	21.43	128.50	—
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	15,877)	15,100)	15,985)	15,096)	12,224)
Adjusted total Colgate-Palmolive Company shareholders’ equity	547)	669)	808)	179)	(39)
Solvency Ratio
Adjusted financial leverage²	29.03	22.57	19.78	84.34	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Colgate-Palmolive Company shareholders’ equity
= 15,731 ÷ 401 = 39.23

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Colgate-Palmolive Company shareholders’ equity
= 15,877 ÷ 547 = 29.03

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Colgate-Palmolive Co. adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Total Colgate-Palmolive Company shareholders’ equity	401)	609)	743)	117)	(102)
Profitability Ratio
ROE¹	445.14%	355.67%	362.72%	2,023.08%	—
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	1,871)	2,161)	2,698)	2,366)	2,400)
Adjusted total Colgate-Palmolive Company shareholders’ equity	547)	669)	808)	179)	(39)
Profitability Ratio
Adjusted ROE²	342.05%	323.02%	333.91%	1,321.79%	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × 1,785 ÷ 401 = 445.14%

² Adjusted ROE = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Adjusted total Colgate-Palmolive Company shareholders’ equity
= 100 × 1,871 ÷ 547 = 342.05%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Colgate-Palmolive Co. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Total assets	15,731)	15,040)	15,920)	15,034)	12,161)
Profitability Ratio
ROA¹	11.35%	14.40%	16.93%	15.74%	19.74%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	1,871)	2,161)	2,698)	2,366)	2,400)
Adjusted total assets	15,877)	15,100)	15,985)	15,096)	12,224)
Profitability Ratio
Adjusted ROA²	11.78%	14.31%	16.88%	15.67%	19.63%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total assets
= 100 × 1,785 ÷ 15,731 = 11.35%

² Adjusted ROA = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Adjusted total assets
= 100 × 1,871 ÷ 15,877 = 11.78%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Colgate-Palmolive Co. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co. (NYSE:CL)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Colgate-Palmolive Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Colgate-Palmolive Co., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)