Colgate-Palmolive Co. (NYSE:CL)

The financial data over the five-year period reveals a steady increase in both current assets and adjusted current assets.

Current Assets

This category shows a consistent upward trend from 3,793 million US dollars in 2018 to 5,113 million US dollars in 2022. The growth appears gradual but steady each year, indicating a strengthening liquidity position and potentially an increase in readily available resources to meet short-term obligations.

Adjusted Current Assets

Similarly, adjusted current assets have increased from 3,938 million US dollars in 2018 to 5,329 million US dollars in 2022. This measure also displays a consistent upward movement, slightly outpacing the growth rate of current assets, which may reflect adjustments for more accurate or relevant components of current assets that better represent immediate liquidity.

Overall, the trend suggests an improving short-term financial health, with growing asset bases each year under both reported and adjusted frameworks. The increase in adjusted current assets being marginally higher than current assets could imply enhancements in asset quality or refinements in accounting adjustments over the periods analyzed.

The analysis of the annual financial data over the five-year period reveals several noteworthy trends in the assets of the company.

Total Assets

The total assets demonstrated an overall upward trajectory from US$12,161 million at the end of 2018 to US$15,731 million by the end of 2022. This represents a growth of approximately 29.4% over the five years. The most significant increase occurred between 2018 and 2019, with an increase of about 23.7%. However, a slight decline was observed in 2021, with total assets decreasing to US$15,040 million from US$15,920 million in 2020, before rising again in 2022.

Adjusted Total Assets

The adjusted total assets closely mirrored the trend of total assets, beginning at US$12,774 million in 2018 and reaching US$15,812 million in 2022, reflecting growth of approximately 23.8%. Similar to total assets, the adjusted total assets showed a peak in 2020 at US$15,783 million, followed by a small dip in 2021 to US$14,985 million, before recovering in 2022. The adjusted total assets remained consistently higher than the reported total assets across all periods, indicating the application of certain adjustments that increase the asset base as viewed through this metric.

Overall, asset levels have generally increased over the analyzed period, albeit with some volatility in 2021. The adjusted total assets suggest slight differences in valuation or composition from the reported total assets, but both metrics follow a similar pattern of growth and temporary decline. This trend indicates relative stability in the asset base with moderate expansion over the five years.

The analysis of the provided financial data indicates the following trends and patterns:

Current liabilities

The current liabilities have generally increased from 2018 to 2020, rising from 3,341 million US dollars in 2018 to a peak of 4,404 million US dollars in 2020. However, after this peak, the liabilities decreased in 2021 to 4,051 million and further slightly to 4,004 million US dollars in 2022. This pattern suggests an initial buildup of short-term obligations followed by a reduction in the last two years.

Adjusted current liabilities

Adjusted current liabilities also show a similar trend to current liabilities. Starting at 3,193 million US dollars in 2018, the figure increased steadily to 4,383 million in 2020. Thereafter, it declined to 4,044 million in 2021 and continued a minor decrease to 3,965 million in 2022. The adjusted figures show slightly lower amounts compared to the unadjusted current liabilities but follow an almost identical pattern over the period analyzed.

Overall, the data reflect an increasing trend in short-term liabilities up to 2020, followed by a modest reduction in the most recent two years. This may imply efforts to manage or reduce short-term debts or obligations after a period of growth. The close relationship between current and adjusted current liabilities values suggests that the adjustments did not significantly alter the magnitude or trend of liabilities during this period.

Analysis of the financial data reveals several trends concerning the company's liabilities over the five-year period from 2018 to 2022.

Total Liabilities

The total liabilities showed an overall increasing trend from 2018 to 2022. Starting at 11,964 million US dollars in 2018, liabilities rose significantly to 14,476 million US dollars in 2019. In 2020, the total liabilities increased slightly further to 14,819 million US dollars. Subsequently, in 2021, there was a modest decline to 14,069 million US dollars, but this was followed by another increase to 14,925 million US dollars in 2022. These movements indicate a general pattern of liabilities growth with a minor temporary decrease in 2021.

Adjusted Total Liabilities

The adjusted total liabilities also demonstrate a broadly increasing trend akin to total liabilities but with slightly different fluctuations. From 2018 to 2019, adjusted liabilities decreased from 12,147 million to 13,869 million US dollars. They then showed a steady rise in 2020 to 14,362 million and a slight decline in 2021 to 13,665 million US dollars, before increasing again to 14,503 million US dollars in 2022. Although the adjusted liabilities have mostly increased over the period, the pattern includes a decrease in 2021 similar to that seen in total liabilities.

Comparative Insights

The consistency between the trends in total liabilities and adjusted total liabilities suggests that the adjustments made to the total liabilities did not significantly alter the overall trajectory of this financial measure. The year 2021 emerges as an outlier with a reduction in liabilities in both measures, which may warrant further investigation to understand the underlying causes, such as debt repayments or changes in accounting adjustments.

The equity-related figures exhibit notable fluctuations over the analyzed period. The total shareholders' equity demonstrates a significant upward movement from a negative $102 million at the end of 2018 to a peak of $743 million by the end of 2020. However, this metric subsequently declines to $609 million in 2021 and further to $401 million in 2022, indicating some erosion of total equity in the recent years after an initial recovery phase.

In contrast, the adjusted total equity shows a consistent growth trend from 2018 through 2020, increasing from $627 million to $1,421 million. This adjusted measure then experiences a slight contraction to $1,320 million in 2021 and a marginal further decrease to $1,309 million in 2022. Even though there is a downward trend in the last two years, adjusted total equity remains substantially higher than the initial figure in 2018.

Total shareholders' equity

Begins negative in 2018, escalates rapidly to 2020, then declines steadily through 2022.

Adjusted total equity

Displays steady growth up to 2020, followed by minor decreases in 2021 and 2022, yet maintains a relatively elevated level.

Overall, the data indicates an initial recovery and strengthening in equity positions up to 2020 for both total and adjusted measures. The period post-2020, however, suggests some reduction in equity values, potentially reflecting challenges or adjustments impacting the company's capital base in recent years. The adjusted equity remains significantly more robust than the unadjusted total shareholders' equity, implying adjustments account for additional value or risk factors not captured in the basic equity measure.

The financial data over the five-year period reveals several notable trends in debt, equity, and capital metrics.

Total Reported Debt

This metric generally increased from 2018 to 2022, starting at 6,366 million USD and rising to 8,766 million USD. There was a peak in 2019 at 7,847 million USD followed by a slight decline in 2020 and 2021, but the amount rose again in 2022, reaching the highest level in the period observed.

Total Shareholders’ Equity

The shareholders’ equity showed significant volatility, beginning with a negative value of -102 million USD in 2018, turning positive in 2019 at 117 million USD, and peaking in 2020 at 743 million USD. After 2020, it declined to 609 million USD in 2021 and further to 401 million USD in 2022, indicating a decreasing trend in shareholder value after reaching its highest point.

Total Reported Capital

Total capital increased consistently from 2018 to 2022, with the value rising from 6,264 million USD to 9,167 million USD. This upward trend suggests an overall strengthening of the company’s capital base despite fluctuations in debt and equity components.

Adjusted Total Debt

Adjusted debt values closely mirror the pattern seen in total reported debt but with slightly higher figures each year. The adjusted debt increased from 6,986 million USD in 2018 to 9,271 million USD in 2022, reflecting an overall rise and indicating the inclusion of additional liabilities or adjustments to reported debt over time.

Adjusted Total Equity

This category experienced steady growth over the period, beginning at 627 million USD in 2018 and increasing to 1,309 million USD by 2022. Unlike the reported equity, adjusted equity did not show any reversals or declines, suggesting a more favorable or comprehensive assessment of the company’s equity position.

Adjusted Total Capital

Adjusted capital also showed a consistent upward trajectory, rising from 7,613 million USD in 2018 to 10,580 million USD in 2022. This increase, along with the rise in adjusted equity and debt, indicates overall growth in the company’s financial structure when adjustments are considered.

In summary, the company’s reported and adjusted debt levels increased over the period, with a more pronounced rise in adjusted debt. Shareholders’ equity as reported was volatile and trended downward after 2020, whereas adjusted equity showed steady growth. Both reported and adjusted total capital increased steadily, reflecting an expanding capital base. The divergence between reported and adjusted figures suggests adjustments might be capturing additional financial elements that provide a more stable picture of equity growth and debt obligations.

The financial data reveals a fluctuating trend in the income figures of the company over the five-year period ending December 31, 2022.

Net Income Attributable to the Company

The net income attributable to the company exhibited a modest decline from 2018 to 2019, decreasing from 2400 million US dollars to 2367 million US dollars. There was a notable increase in 2020, reaching 2695 million US dollars, which represents the highest value in the five-year span. However, after this peak, net income declined in the subsequent years, dropping to 2166 million US dollars in 2021 and further decreasing to 1785 million US dollars in 2022. This downward trend in the last two years indicates challenges faced by the company affecting profitability.

Adjusted Net Income Including Noncontrolling Interests

The adjusted net income, which accounts for noncontrolling interests, followed a somewhat similar pattern with minor differences in magnitude. It decreased slightly from 2376 million US dollars in 2018 to 2348 million US dollars in 2019. It then increased to 2604 million US dollars in 2020, though this rise was less pronounced than the net income. In 2021, adjusted net income dropped to 2218 million US dollars but showed a slight recovery in 2022, increasing to 2235 million US dollars. This stabilization in the final year suggests some mitigation of losses compared to the decline observed in net income attributable to the company.

Overall, the data suggests the company experienced volatility in earnings with a peak in 2020 followed by declines, particularly marked in net income attributable to the company, while adjusted net income demonstrated some resilience in the last year of the period considered.