Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
Colgate-Palmolive Co., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The capital structure is characterized by an exceptionally high degree of leverage, with total liabilities consistently representing the vast majority of the balance sheet. Total liabilities have fluctuated between 93.06% and 101.63% of total liabilities and equity over the analyzed period, indicating a minimal equity cushion and a heavy reliance on debt financing.
- Long-Term Debt and Non-Current Liabilities
- Non-current liabilities are the primary driver of the company's funding strategy, generally accounting for 64% to 71% of the total balance sheet. Long-term debt, excluding the current portion, is the most significant single component, consistently ranging from 45.07% to 55.57%. A notable increase in the relative weight of long-term debt occurred toward the end of 2022 and into 2023, peaking at 55.18% by June 30, 2023.
- Current Liability Trends
- Current liabilities have remained relatively stable, typically oscillating between 25% and 31% of total liabilities and equity. Other accruals represent the largest portion of current obligations, fluctuating between 12.75% and 17.42%. Accounts payable have shown consistent patterns, generally remaining between 7.85% and 10.06%, suggesting a stable relationship with suppliers and a consistent working capital cycle.
- Equity Composition and Share Repurchase Activity
- The shareholders' equity section reveals an aggressive capital return strategy. While retained earnings are substantial—ranging from 145.48% to 177.74% of total liabilities and equity—they are almost entirely offset by treasury stock acquisitions, which fluctuate between -144.06% and -174.29%. This netting effect results in total shareholders' equity that is frequently negative or near zero, indicating that the company has returned a significant portion of its accumulated earnings to shareholders through buybacks.
- Total Equity Volatility
- Total equity has experienced significant volatility, shifting from negative values (as low as -1.49%) to modest positive values (peaking at 6.94% in September 2020). By June 30, 2023, total equity declined to 1.94%, reflecting the continued impact of treasury stock and the dominance of liabilities in the overall financing mix.
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