Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Colgate-Palmolive Co., consolidated balance sheet: assets
US$ in millions
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 financial data exhibits various notable trends in the composition and valuation of assets over the five-year period ending December 31, 2022.
- Cash and Cash Equivalents
- This category shows a fluctuating trend, starting at $726 million in 2018, peaking at $888 million in 2020, and then declining to $775 million by 2022. The increase up to 2020 suggests a strengthening liquidity position, although it weakened slightly in the subsequent years.
- Receivables, Net of Allowances
- Receivables decreased in 2020 to $1,264 million from $1,440 million in 2019, which could indicate improved collection efficiency or reduced sales. However, it rebounded to $1,504 million in 2022, reflecting either increased sales or extended credit terms.
- Inventories
- Inventories display a consistent upward trend, rising from $1,250 million in 2018 to $2,074 million in 2022. This persistent increase may indicate stockpiling in anticipation of demand growth, slower turnover, or strategic inventory buildup.
- Other Current Assets
- There is a steady increase from $417 million in 2018 to $760 million in 2022, suggesting rising prepaid expenses, short-term investments, or other current asset components.
- Current Assets
- Total current assets grow from $3,793 million in 2018 to $5,113 million in 2022, reflecting the combined effects of the trends in individual current asset categories and indicating a growing base of readily convertible resources.
- Property, Plant and Equipment, Net
- This category slightly declined from $3,881 million in 2018 to $3,716 million in 2020, remained relatively flat in 2021, and then increased to $4,307 million in 2022. The rise in 2022 suggests recent investments or capital expenditures on fixed assets.
- Goodwill
- Goodwill increased notably from $2,530 million in 2018 to peak at $3,824 million in 2020, followed by a decrease to $3,352 million in 2022. Such changes could be attributable to acquisitions followed by impairment or divestiture activities.
- Other Intangible Assets, Net
- This item rises from $1,637 million in 2018 to $2,894 million in 2020, then declines significantly to $1,920 million by 2022. The decline after 2020 might reflect amortization, impairment, or strategic repositioning of intangible assets.
- Deferred Income Taxes
- Deferred income taxes increased from $152 million in 2018 to $291 million in 2020, then decreased to $135 million by 2022. This pattern suggests fluctuations in tax timing differences or changes in tax planning strategies.
- Other Assets
- Other assets show marked growth from $168 million in 2018 to $974 million in 2021, followed by a slight decline to $904 million in 2022. This indicates increased investments or miscellaneous asset recognition over this period.
- Non-current Assets
- Non-current assets rose from $8,368 million in 2018 to $11,582 million in 2020, then decreased slightly to $10,618 million in 2022. While generally higher, the slight decrease after 2020 could reflect asset disposals, impairments, or amortization impacts.
- Total Assets
- Total assets increased substantially from $12,161 million in 2018 to a peak of $15,920 million in 2020, followed by a decline to $15,731 million in 2022. The overall growth reflects expansion in both current and non-current assets, with some volatility post-2020.