Net Profit Margin
since 2005
Calculation
Colgate-Palmolive Co., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Colgate-Palmolive Company1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 9.93% | = | 100 | × | 1,785) | ÷ | 17,967) |
| Dec 31, 2021 | 12.43% | = | 100 | × | 2,166) | ÷ | 17,421) |
| Dec 31, 2020 | 16.36% | = | 100 | × | 2,695) | ÷ | 16,471) |
| Dec 31, 2019 | 15.08% | = | 100 | × | 2,367) | ÷ | 15,693) |
| Dec 31, 2018 | 15.44% | = | 100 | × | 2,400) | ÷ | 15,544) |
| Dec 31, 2017 | 13.10% | = | 100 | × | 2,024) | ÷ | 15,454) |
| Dec 31, 2016 | 16.06% | = | 100 | × | 2,441) | ÷ | 15,195) |
| Dec 31, 2015 | 8.63% | = | 100 | × | 1,384) | ÷ | 16,034) |
| Dec 31, 2014 | 12.62% | = | 100 | × | 2,180) | ÷ | 17,277) |
| Dec 31, 2013 | 12.86% | = | 100 | × | 2,241) | ÷ | 17,420) |
| Dec 31, 2012 | 14.47% | = | 100 | × | 2,472) | ÷ | 17,085) |
| Dec 31, 2011 | 14.53% | = | 100 | × | 2,431) | ÷ | 16,734) |
| Dec 31, 2010 | 14.15% | = | 100 | × | 2,203) | ÷ | 15,564) |
| Dec 31, 2009 | 14.95% | = | 100 | × | 2,291) | ÷ | 15,327) |
| Dec 31, 2008 | 12.77% | = | 100 | × | 1,957) | ÷ | 15,330) |
| Dec 31, 2007 | 12.60% | = | 100 | × | 1,737) | ÷ | 13,790) |
| Dec 31, 2006 | 11.06% | = | 100 | × | 1,353) | ÷ | 12,238) |
| Dec 31, 2005 | 11.86% | = | 100 | × | 1,351) | ÷ | 11,397) |
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 financial performance from 2005 to 2022 is characterized by a consistent increase in net sales accompanied by significant volatility in net income and net profit margins.
- Net Profit Margin Trajectory
- A general upward trend in profitability was observed between 2005 and 2009, with the net profit margin rising from 11.86% to 14.95%. Following this period, margins remained relatively stable, fluctuating between 12% and 14% through 2014.
- Profitability Anomalies and Recovery
- A sharp contraction in profitability occurred in 2015, where the net profit margin fell to 8.63%, the lowest level recorded in the analyzed period. This decline was followed by a rapid recovery in 2016, as the margin surged to 16.06%, indicating a strong rebound in operational efficiency or a reduction in one-time expenses.
- Recent Peak and Subsequent Decline
- The highest net profit margin was achieved in 2020 at 16.36%. However, a distinct downward trend emerged in the final two years of the data set, with margins falling to 12.43% in 2021 and further decreasing to 9.93% by December 31, 2022.
While net sales grew steadily from 11.397 billion US dollars in 2005 to 17.967 billion US dollars in 2022, the net profit margin did not scale linearly with revenue. The divergence between revenue growth and margin stability suggests that the company experienced varying cost pressures and margin compression, particularly in the 2015 and 2021-2022 periods.
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Comparison to Competitors
Colgate-Palmolive Co., net profit margin, long-term trends, comparison to competitors
| Colgate-Palmolive Co. | Procter & Gamble Co. | |
|---|---|---|
| Dec 31, 2022 | 9.93% | 18.38% |
| Dec 31, 2021 | 12.43% | 18.79% |
| Dec 31, 2020 | 16.36% | 18.36% |
| Dec 31, 2019 | 15.08% | 5.76% |
| Dec 31, 2018 | 15.44% | 14.59% |
| Dec 31, 2017 | 13.10% | 23.56% |
| Dec 31, 2016 | 16.06% | 16.09% |
| Dec 31, 2015 | 8.63% | 9.22% |
| Dec 31, 2014 | 12.62% | 14.02% |
| Dec 31, 2013 | 12.86% | 13.44% |
| Dec 31, 2012 | 14.47% | 12.85% |
| Dec 31, 2011 | 14.53% | 14.29% |
| Dec 31, 2010 | 14.15% | 16.13% |
| Dec 31, 2009 | 14.95% | 17.00% |
| Dec 31, 2008 | 12.77% | 14.46% |
| Dec 31, 2007 | 12.60% | 13.52% |
| Dec 31, 2006 | 11.06% | 12.73% |
| Dec 31, 2005 | 11.86% | 12.79% |
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., net profit margin, long-term trends, comparison to industry (consumer staples)
| Colgate-Palmolive Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 9.93% | 6.11% |
| Dec 31, 2021 | 12.43% | 6.21% |
| Dec 31, 2020 | 16.36% | 6.22% |
| Dec 31, 2019 | 15.08% | 4.62% |
| Dec 31, 2018 | 15.44% | 6.05% |
| Dec 31, 2017 | 13.10% | 5.52% |
| Dec 31, 2016 | 16.06% | 5.88% |
| Dec 31, 2015 | 8.63% | 5.62% |
| Dec 31, 2014 | 12.62% | 6.00% |
| Dec 31, 2013 | 12.86% | 6.75% |
| Dec 31, 2012 | 14.47% | 6.65% |
| Dec 31, 2011 | 14.53% | 6.99% |
| Dec 31, 2010 | 14.15% | 7.59% |
| Dec 31, 2009 | 14.95% | 6.93% |
| Dec 31, 2008 | 12.77% | 6.75% |
| Dec 31, 2007 | 12.60% | 6.11% |
| Dec 31, 2006 | 11.06% | 6.35% |
| Dec 31, 2005 | 11.86% | 6.29% |
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).