Stock Analysis on Net
Stock Analysis on Net
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Colgate-Palmolive Co. (NYSE:CL)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Colgate-Palmolive Co., adjustment to net income attributable to Colgate-Palmolive Company

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Colgate-Palmolive Company (as reported) 2,695  2,367  2,400  2,024  2,441 
Add: Gains (losses) on available-for-sale securities —  —  —  —  (1)
Net income attributable to Colgate-Palmolive Company (adjusted) 2,695  2,367  2,400  2,024  2,440 

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Colgate-Palmolive Co., adjusted profitability ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 16.36% 15.08% 15.44% 13.10% 16.06%
Adjusted net profit margin 16.36% 15.08% 15.44% 13.10% 16.06%
Return on Equity (ROE)
Reported ROE 362.72% 2,023.08%
Adjusted ROE 362.72% 2,023.08%
Return on Assets (ROA)
Reported ROA 16.93% 15.74% 19.74% 15.97% 20.14%
Adjusted ROA 16.93% 15.74% 19.74% 15.97% 20.13%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Colgate-Palmolive Co.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Colgate-Palmolive Co.’s adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

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


Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,441 
Net sales 16,471  15,693  15,544  15,454  15,195 
Profitability Ratio
Net profit margin1 16.36% 15.08% 15.44% 13.10% 16.06%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,440 
Net sales 16,471  15,693  15,544  15,454  15,195 
Profitability Ratio
Adjusted net profit margin2 16.36% 15.08% 15.44% 13.10% 16.06%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

2020 Calculations

1 Net profit margin = 100 × Net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 2,695 ÷ 16,471 = 16.36%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 2,695 ÷ 16,471 = 16.36%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Colgate-Palmolive Co.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Equity (ROE)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,441 
Total Colgate-Palmolive Company shareholders’ equity 743  117  (102) (60) (243)
Profitability Ratio
ROE1 362.72% 2,023.08%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,440 
Total Colgate-Palmolive Company shareholders’ equity 743  117  (102) (60) (243)
Profitability Ratio
Adjusted ROE2 362.72% 2,023.08%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

2020 Calculations

1 ROE = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × 2,695 ÷ 743 = 362.72%

2 Adjusted ROE = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × 2,695 ÷ 743 = 362.72%


Adjusted Return on Assets (ROA)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,441 
Total assets 15,920  15,034  12,161  12,676  12,123 
Profitability Ratio
ROA1 16.93% 15.74% 19.74% 15.97% 20.14%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,440 
Total assets 15,920  15,034  12,161  12,676  12,123 
Profitability Ratio
Adjusted ROA2 16.93% 15.74% 19.74% 15.97% 20.13%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

2020 Calculations

1 ROA = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total assets
= 100 × 2,695 ÷ 15,920 = 16.93%

2 Adjusted ROA = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Total assets
= 100 × 2,695 ÷ 15,920 = 16.93%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Colgate-Palmolive Co.’s adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.