Operating Profit Margin
since 2005
Calculation
Colgate-Palmolive Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 16.10% | = | 100 | × | 2,893) | ÷ | 17,967) |
| Dec 31, 2021 | 19.13% | = | 100 | × | 3,332) | ÷ | 17,421) |
| Dec 31, 2020 | 23.59% | = | 100 | × | 3,885) | ÷ | 16,471) |
| Dec 31, 2019 | 22.65% | = | 100 | × | 3,554) | ÷ | 15,693) |
| Dec 31, 2018 | 23.76% | = | 100 | × | 3,694) | ÷ | 15,544) |
| Dec 31, 2017 | 23.22% | = | 100 | × | 3,589) | ÷ | 15,454) |
| Dec 31, 2016 | 25.25% | = | 100 | × | 3,837) | ÷ | 15,195) |
| Dec 31, 2015 | 17.39% | = | 100 | × | 2,789) | ÷ | 16,034) |
| Dec 31, 2014 | 20.59% | = | 100 | × | 3,557) | ÷ | 17,277) |
| Dec 31, 2013 | 20.41% | = | 100 | × | 3,556) | ÷ | 17,420) |
| Dec 31, 2012 | 22.76% | = | 100 | × | 3,889) | ÷ | 17,085) |
| Dec 31, 2011 | 22.95% | = | 100 | × | 3,841) | ÷ | 16,734) |
| Dec 31, 2010 | 22.42% | = | 100 | × | 3,489) | ÷ | 15,564) |
| Dec 31, 2009 | 23.59% | = | 100 | × | 3,615) | ÷ | 15,327) |
| Dec 31, 2008 | 19.70% | = | 100 | × | 3,021) | ÷ | 15,330) |
| Dec 31, 2007 | 19.24% | = | 100 | × | 2,653) | ÷ | 13,790) |
| Dec 31, 2006 | 17.65% | = | 100 | × | 2,161) | ÷ | 12,238) |
| Dec 31, 2005 | 19.44% | = | 100 | × | 2,215) | ÷ | 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 operating profit margin exhibited significant volatility between 2005 and 2022, characterized by alternating cycles of expansion and contraction. While net sales showed a general upward trajectory, increasing from 11,397 million USD in 2005 to 17,967 million USD in 2022, the efficiency of converting these sales into operating profit fluctuated substantially.
- Initial Stability and First Growth Phase (2005–2012)
- Between 2005 and 2008, operating margins remained relatively stable, fluctuating between 17.65% and 19.70%. A significant upward shift occurred in 2009, with the margin rising to 23.59%. This elevated performance was sustained through 2012, with the margin consistently remaining above 22%, indicating a period of improved operational efficiency and cost control.
- Mid-Period Contraction (2013–2015)
- A period of margin erosion is observed starting in 2013. The operating profit margin declined from 22.76% in 2012 to 17.39% by 2015. This decline coincided with a reduction in net sales, which fell from 17,420 million USD in 2013 to 16,034 million USD in 2014, suggesting that costs did not scale down proportionally with the decrease in revenue.
- Peak Efficiency and Recent Decline (2016–2022)
- A sharp recovery occurred in 2016, with the operating profit margin reaching a historical peak of 25.25%. Efficiency remained strong through 2020, with margins consistently exceeding 22%. However, a severe downward trend emerged in the final two years of the period. Despite net sales reaching their highest level of 17,967 million USD in 2022, the operating profit margin collapsed to 16.10%, the lowest point in the analyzed 18-year history. This divergence between record sales and record-low margins indicates a substantial increase in operating expenses relative to revenue growth.
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Comparison to Competitors
Colgate-Palmolive Co., operating profit margin, long-term trends, comparison to competitors
| Colgate-Palmolive Co. | Procter & Gamble Co. | |
|---|---|---|
| Dec 31, 2022 | 16.10% | 22.21% |
| Dec 31, 2021 | 19.13% | 23.63% |
| Dec 31, 2020 | 23.59% | 22.14% |
| Dec 31, 2019 | 22.65% | 8.11% |
| Dec 31, 2018 | 23.76% | 20.52% |
| Dec 31, 2017 | 23.22% | 21.45% |
| Dec 31, 2016 | 25.25% | 20.58% |
| Dec 31, 2015 | 17.39% | 15.46% |
| Dec 31, 2014 | 20.59% | 18.41% |
| Dec 31, 2013 | 20.41% | 17.21% |
| Dec 31, 2012 | 22.76% | 15.88% |
| Dec 31, 2011 | 22.95% | 19.16% |
| Dec 31, 2010 | 22.42% | 20.30% |
| Dec 31, 2009 | 23.59% | 20.40% |
| Dec 31, 2008 | 19.70% | 20.46% |
| Dec 31, 2007 | 19.24% | 20.20% |
| Dec 31, 2006 | 17.65% | 19.42% |
| Dec 31, 2005 | 19.44% | 19.26% |
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).