Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Colgate-Palmolive Co., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Colgate-Palmolive Co. net fixed asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Colgate-Palmolive Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Colgate-Palmolive Co. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Colgate-Palmolive Co. equity turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover
Colgate-Palmolive Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 17,967) | 17,421) | 16,471) | 15,693) | 15,544) | |
| Property, plant and equipment, net | 4,307) | 3,730) | 3,716) | 3,750) | 3,881) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.17 | 4.67 | 4.43 | 4.18 | 4.01 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Procter & Gamble Co. | 3.78 | 3.51 | 3.43 | 3.18 | 3.24 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Staples | 5.30 | 5.14 | 4.44 | 4.34 | — | |
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).
1 2022 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 17,967 ÷ 4,307 = 4.17
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Colgate-Palmolive Co. net fixed asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Colgate-Palmolive Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 17,967) | 17,421) | 16,471) | 15,693) | 15,544) | |
| Property, plant and equipment, net | 4,307) | 3,730) | 3,716) | 3,750) | 3,881) | |
| Operating lease right-of use assets (included in Other assets) | 478) | 527) | 521) | 502) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 4,785) | 4,257) | 4,237) | 4,252) | 3,881) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.75 | 4.09 | 3.89 | 3.69 | 4.01 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Procter & Gamble Co. | 3.65 | 3.38 | 3.29 | 3.18 | 3.24 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Staples | 4.77 | 4.62 | 3.96 | 4.24 | — | |
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).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 17,967 ÷ 4,785 = 3.75
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Colgate-Palmolive Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Total Asset Turnover
Colgate-Palmolive Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.14 | 1.16 | 1.03 | 1.04 | 1.28 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Procter & Gamble Co. | 0.68 | 0.64 | 0.59 | 0.59 | 0.56 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Staples | 1.50 | 1.40 | 1.31 | 1.37 | — | |
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).
1 2022 Calculation
Total asset turnover = Net sales ÷ Total assets
= 17,967 ÷ 15,731 = 1.14
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Colgate-Palmolive Co. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Equity Turnover
Colgate-Palmolive Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 17,967) | 17,421) | 16,471) | 15,693) | 15,544) | |
| Total Colgate-Palmolive Company shareholders’ equity | 401) | 609) | 743) | 117) | (102) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 44.81 | 28.61 | 22.17 | 134.13 | — | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Procter & Gamble Co. | 1.72 | 1.64 | 1.53 | 1.43 | 1.28 | |
| Equity Turnover, Industry | ||||||
| Consumer Staples | 5.11 | 4.84 | 4.60 | 4.48 | — | |
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).
1 2022 Calculation
Equity turnover = Net sales ÷ Total Colgate-Palmolive Company shareholders’ equity
= 17,967 ÷ 401 = 44.81
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Colgate-Palmolive Co. equity turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |