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. |
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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. |
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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. |
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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. |
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