# Colgate-Palmolive Co. (CL) | Long-term (Investment) Activity Analysis

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

## Ratios (Summary)

Colgate-Palmolive Co., long-term (investment) activity ratios

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Net fixed asset turnover 4.45 4.56 4.21 4.36 4.92
Total asset turnover 1.28 1.32 1.39 1.38 1.54
Equity turnover 7.80 7.05 5.82 4.92 7.97

Source: Based on data from Colgate-Palmolive Co. Annual Reports

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Colgate-Palmolive Co.'s net fixed asset turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Colgate-Palmolive Co.'s total asset turnover deteriorated from 2010 to 2011 and from 2011 to 2012.
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. Colgate-Palmolive Co.'s equity turnover improved from 2010 to 2011 and from 2011 to 2012.

## Net Fixed Asset Turnover

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Selected Financial Data (USD \$ in millions)
Net sales 17,085  16,734  15,564  15,327  15,330
Property, plant and equipment, net 3,842  3,668  3,693  3,516  3,119
Net Fixed Asset Turnover, Comparison to Industry
Colgate-Palmolive Co.1 4.45 4.56 4.21 4.36 4.92
Industry, Consumer Goods 3.65 3.67 3.47 3.62 4.10

Source: Based on data from Colgate-Palmolive Co. Annual Reports

2012 Calculations

1 Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 17,085 ÷ 3,842 = 4.45

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Colgate-Palmolive Co.'s net fixed asset turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.

## Total Asset Turnover

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Selected Financial Data (USD \$ in millions)
Net sales 17,085  16,734  15,564  15,327  15,330
Total assets 13,394  12,724  11,172  11,134  9,979
Total Asset Turnover, Comparison to Industry
Colgate-Palmolive Co.1 1.28 1.32 1.39 1.38 1.54
Industry, Consumer Goods 0.75 0.77 0.75 0.81 0.88

Source: Based on data from Colgate-Palmolive Co. Annual Reports

2012 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 17,085 ÷ 13,394 = 1.28

Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Colgate-Palmolive Co.'s total asset turnover deteriorated from 2010 to 2011 and from 2011 to 2012.

## Equity Turnover

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Selected Financial Data (USD \$ in millions)
Net sales 17,085  16,734  15,564  15,327  15,330
Total Colgate-Palmolive Company shareholders' equity 2,189  2,375  2,675  3,116  1,923
Equity Turnover, Comparison to Industry
Colgate-Palmolive Co.1 7.80 7.05 5.82 4.92 7.97
Industry, Consumer Goods 2.20 2.19 2.11 2.25 2.39

Source: Based on data from Colgate-Palmolive Co. Annual Reports

2012 Calculations

1 Equity turnover = Net sales ÷ Total Colgate-Palmolive Company shareholders' equity
= 17,085 ÷ 2,189 = 7.80

Ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. Colgate-Palmolive Co.'s equity turnover improved from 2010 to 2011 and from 2011 to 2012.