Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Analysis of Revenues
- Analysis of Debt
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Colgate-Palmolive Co., common-size consolidated balance sheet: liabilities and stockholders’ equity
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).
The analysis of the financial data over the five-year period reveals several notable trends in the company's liability and equity structure.
- Short-term Liabilities
- Notes and loans payable as a percentage of total liabilities and equity showed variability, increasing sharply in 2019 and 2020 before declining again by 2022. The current portion of long-term debt had minor fluctuations with a peak in 2019 but remained below 0.1% thereafter. Accounts payable decreased from 2018 to 2019 but gradually increased afterward, stabilizing close to 9.8% by 2022.
- Accrued income taxes steadily declined from 3.38% in 2018 to 2.02% in 2022, indicating a reduction in short-term tax obligations relative to total liabilities and equity. Accrued advertising and coupon redemption liabilities increased slightly over the period, suggesting growing advertising commitments.
- Accrued payroll and employee benefits decreased marginally, while accrued taxes other than income taxes displayed a consistent but modest increase. The restructuring accrual for current liabilities declined significantly until 2021 but showed a minor increase in 2022.
- Operating lease liabilities due in one year peaked in 2019 and have been decreasing since, which may reflect changes in lease obligations. Accrued interest remained relatively stable but showed an increase in 2022, possibly due to higher interest expenses.
- Other current accruals fluctuated but remained a significant portion of current liabilities, maintaining a general range around 13-14%. Other components within current liabilities declined gradually.
- Long-term Liabilities
- The proportion of long-term debt excluding the current portion decreased steadily from 2018 through 2020 but then increased notably by 2022, reaching its highest percentage in the period reviewed. This suggests increased reliance on long-term debt financing in recent years.
- Deferred income taxes fluctuated but showed a slight decline by 2022. Pension and other retiree benefits within non-current liabilities decreased substantially, indicating either reduced obligations or changes in actuarial assumptions.
- Restructuring accruals for long-term liabilities decreased to near zero and were absent in 2022. Long-term operating lease liabilities decreased gradually after peaking in 2019, consistent with trends observed in current operating lease liabilities.
- Other non-current liabilities decreased over the period, reflecting a potential reduction in miscellaneous obligations. Overall, non-current liabilities showed minor fluctuations but generally remained a dominant portion of the total liabilities and equity structure.
- Total Liabilities
- Total liabilities as a percentage of total liabilities and equity declined from near 98% in 2018 to around 93-94% in subsequent years, showing a slight improvement in balance sheet composition by reducing liabilities relative to the overall capital structure.
- Equity Components
- Common stock as a percentage declined slightly, while additional paid-in capital increased steadily, indicating new capital contributions or revaluation of equity components. Retained earnings exhibited a decreasing trend over the period but showed some recovery by 2021 before declining again in 2022.
- Accumulated other comprehensive loss decreased in absolute negative terms, suggesting an improvement in comprehensive income components or less volatility in items affecting other comprehensive income. Treasury stock, indicating company repurchases, decreased in negative percentage terms after 2018 but showed some increase in repurchases by 2021 and 2022.
- Total shareholders’ equity remained negative or marginally positive throughout the period, with a peak in 2020 but decreasing again afterward. Noncontrolling interests slightly increased over the period, contributing positively to total equity. Overall, total equity as a proportion of total liabilities and equity improved from 2018 to 2020 but declined from 2021 onwards.
- Capital Structure Insights
- The data indicate a relatively high reliance on liabilities compared to equity, with liabilities making up over 90% of the capital structure consistently. The increase in long-term debt in recent years and the modest decline in total equity suggest a shift towards debt financing.
- Improvements in comprehensive loss and stability in accrued advertising obligations highlight areas of operational focus. The reduction in pension-related liabilities points to changes in benefit obligations or accounting policies.
- Current liabilities showed minor instability but remained relatively controlled, while long-term liabilities exhibited more significant changes, especially in long-term debt levels. The balance of capital sources reflects cautious management of leverage alongside ongoing equity movements and retained earnings adjustments.