Colgate-Palmolive Co. (NYSE:CL)

Land

The value of land shows a generally increasing trend over the five-year period, with a modest rise from 152 million US dollars in 2018 to 180 million US dollars in 2022. A slight dip occurred in 2021, but the overall increase reflects gradual expansion or acquisition of land assets.

Buildings

Building values remained relatively stable between 2018 and 2021, fluctuating slightly but staying near the 1600 million US dollars mark. A significant increase occurred in 2022, rising to 1825 million US dollars, indicating potential investments or upgrades in building infrastructure during the final year observed.

Manufacturing machinery and equipment

This category demonstrated consistent growth each year, starting at 5157 million US dollars in 2018 and increasing to 6001 million US dollars in 2022. The continual rise suggests steady investment in manufacturing capacity or technological enhancements over the period.

Other equipment

Other equipment increased steadily from 1423 million US dollars in 2018 to a peak of 1606 million in 2021, followed by a slight decrease to 1577 million US dollars in 2022. This pattern indicates general growth with minor fluctuations in equipment acquisition or disposals.

Property, plant and equipment, cost

The total cost of property, plant, and equipment rose gradually from 8336 million US dollars in 2018 to 9583 million in 2022. This steady increase reflects ongoing capital expenditure contributing to asset growth over the five years.

Accumulated depreciation

Accumulated depreciation showed a consistent incremental increase in absolute terms (note the negative values), growing from -4455 million US dollars in 2018 to -5276 million US dollars in 2022. This steady accumulation is typical as assets age and indicates continual depreciation expense recognition.

Property, plant and equipment, net

The net value of property, plant, and equipment experienced a decline from 3881 million US dollars in 2018 to a low of 3716 million in 2020, followed by stabilization around 3730 million in 2021. A notable increase to 4307 million US dollars occurred in 2022, suggesting significant asset additions or revaluation surpassing depreciation impacts in that year.

The average age ratio of property, plant, and equipment for the company demonstrates a general upward trend over the first four years, increasing from 54.44% in 2018 to a peak of 59.17% in 2021. This indicates that, on average, the company's assets were becoming older during this period, which could suggest limited recent investments in new property, plant, and equipment or a longer usage period of existing assets.

However, in 2022, there is a noticeable decrease in the average age ratio to 56.11%, suggesting a partial renewal or replacement of assets. This decline may reflect increased capital expenditure aimed at updating or expanding the asset base, or a change in asset composition that lowered the overall average age.

Overall, the data point to a period of asset aging from 2018 through 2021, followed by a slight rejuvenation in the asset base in the most recent year. Monitoring this trend is important as a higher average age ratio can imply increased maintenance costs or potential future capital expenditures to maintain operational efficiency.

Accumulated Depreciation

The accumulated depreciation increased steadily from US$ 4,455 million in 2018 to US$ 5,276 million in 2022. This consistent rise indicates ongoing depreciation of fixed assets, reflecting the aging and usage of property, plant, and equipment over the period.

Property, Plant and Equipment, Cost

The cost basis of property, plant, and equipment rose from US$ 8,336 million in 2018 to US$ 9,583 million in 2022, showing a moderate but steady increase. The increase from 2021 to 2022 was particularly notable, suggesting recent investments or acquisitions in fixed assets.

Land

The value attributed to land showed a gradual upward trend, increasing from US$ 152 million in 2018 to US$ 180 million in 2022. The progression is relatively stable, with a slight dip in 2021 before increasing again in 2022, possibly indicating minor adjustments or acquisitions in land holdings.

Average Age Ratio

The average age ratio, expressed as a percentage, rose from 54.44% in 2018 to a peak of 59.17% in 2021, followed by a decrease to 56.11% in 2022. This suggests that the overall asset base had been aging steadily until 2021, but the reduction in 2022 points to the addition of newer assets or replacement of older ones during that year.