Current Ratio
since 2005
Calculation
Colgate-Palmolive Co., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.28 | = | 5,113) | ÷ | 4,004) |
| Dec 31, 2021 | 1.09 | = | 4,397) | ÷ | 4,051) |
| Dec 31, 2020 | 0.99 | = | 4,338) | ÷ | 4,404) |
| Dec 31, 2019 | 1.03 | = | 4,179) | ÷ | 4,038) |
| Dec 31, 2018 | 1.14 | = | 3,793) | ÷ | 3,341) |
| Dec 31, 2017 | 1.36 | = | 4,639) | ÷ | 3,408) |
| Dec 31, 2016 | 1.31 | = | 4,338) | ÷ | 3,305) |
| Dec 31, 2015 | 1.24 | = | 4,384) | ÷ | 3,534) |
| Dec 31, 2014 | 1.23 | = | 4,863) | ÷ | 3,946) |
| Dec 31, 2013 | 1.08 | = | 4,822) | ÷ | 4,470) |
| Dec 31, 2012 | 1.22 | = | 4,556) | ÷ | 3,736) |
| Dec 31, 2011 | 1.18 | = | 4,402) | ÷ | 3,716) |
| Dec 31, 2010 | 1.00 | = | 3,730) | ÷ | 3,728) |
| Dec 31, 2009 | 1.06 | = | 3,810) | ÷ | 3,599) |
| Dec 31, 2008 | 1.26 | = | 3,710) | ÷ | 2,953) |
| Dec 31, 2007 | 1.14 | = | 3,619) | ÷ | 3,163) |
| Dec 31, 2006 | 0.95 | = | 3,301) | ÷ | 3,469) |
| Dec 31, 2005 | 1.01 | = | 2,757) | ÷ | 2,743) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity position of the entity between 2005 and 2022 is characterized by a general stability, with the current ratio consistently hovering around the 1.0 to 1.3 range. While current assets grew from 2,757 million US$ in 2005 to 5,113 million US$ in 2022, the current ratio did not follow a linear upward path, indicating that current liabilities were managed in relative proportion to asset growth.
- Asset and Liability Dynamics
- Current assets exhibited a long-term growth trend, increasing by approximately 85% over the analyzed period. Current liabilities showed more volatility, peaking at 4,470 million US$ in 2013 and 4,404 million US$ in 2020. The interplay between these two components resulted in a liquidity profile that occasionally dipped below the 1.0 threshold, specifically in 2006 and 2020, suggesting periods where short-term obligations slightly exceeded liquid assets.
- Liquidity Cycle Analysis
- A period of strengthening liquidity is observed from 2011 to 2017, during which the current ratio rose steadily from 1.18 to a peak of 1.36. This trend indicates a strategic increase in the cushion of current assets relative to short-term debts. However, this trend reversed between 2018 and 2020, with the ratio falling to 0.99, marking a return to a leaner liquidity position.
- Recent Performance and Recovery
- A significant recovery in the liquidity ratio is evident in the final two years of the period. The current ratio climbed from 0.99 in 2020 to 1.28 by 2022. This improvement was primarily driven by a substantial increase in current assets, which reached a period high of 5,113 million US$, while current liabilities concurrently decreased to 4,004 million US$.
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Comparison to Competitors
Colgate-Palmolive Co., current ratio, long-term trends, comparison to competitors
| Colgate-Palmolive Co. | Procter & Gamble Co. | |
|---|---|---|
| Dec 31, 2022 | 1.28 | 0.65 |
| Dec 31, 2021 | 1.09 | 0.70 |
| Dec 31, 2020 | 0.99 | 0.85 |
| Dec 31, 2019 | 1.03 | 0.75 |
| Dec 31, 2018 | 1.14 | 0.83 |
| Dec 31, 2017 | 1.36 | 0.88 |
| Dec 31, 2016 | 1.31 | 1.10 |
| Dec 31, 2015 | 1.24 | 1.00 |
| Dec 31, 2014 | 1.23 | 0.94 |
| Dec 31, 2013 | 1.08 | 0.80 |
| Dec 31, 2012 | 1.22 | 0.88 |
| Dec 31, 2011 | 1.18 | 0.80 |
| Dec 31, 2010 | 1.00 | 0.77 |
| Dec 31, 2009 | 1.06 | 0.71 |
| Dec 31, 2008 | 1.26 | 0.79 |
| Dec 31, 2007 | 1.14 | 0.78 |
| Dec 31, 2006 | 0.95 | 1.22 |
| Dec 31, 2005 | 1.01 | 0.81 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Colgate-Palmolive Co., current ratio, long-term trends, comparison to industry (consumer staples)
| Colgate-Palmolive Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 1.28 | 0.87 |
| Dec 31, 2021 | 1.09 | 0.93 |
| Dec 31, 2020 | 0.99 | 0.92 |
| Dec 31, 2019 | 1.03 | 0.82 |
| Dec 31, 2018 | 1.14 | 0.87 |
| Dec 31, 2017 | 1.36 | 1.02 |
| Dec 31, 2016 | 1.31 | 1.04 |
| Dec 31, 2015 | 1.24 | 1.06 |
| Dec 31, 2014 | 1.23 | 0.97 |
| Dec 31, 2013 | 1.08 | 0.97 |
| Dec 31, 2012 | 1.22 | 0.99 |
| Dec 31, 2011 | 1.18 | 0.97 |
| Dec 31, 2010 | 1.00 | 1.01 |
| Dec 31, 2009 | 1.06 | 1.03 |
| Dec 31, 2008 | 1.26 | 0.98 |
| Dec 31, 2007 | 1.14 | 0.91 |
| Dec 31, 2006 | 0.95 | 1.04 |
| Dec 31, 2005 | 1.01 | 0.99 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).