Return on Assets (ROA)
since 2005
Calculation
Colgate-Palmolive Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Colgate-Palmolive Company1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 11.35% | = | 100 | × | 1,785) | ÷ | 15,731) |
| Dec 31, 2021 | 14.40% | = | 100 | × | 2,166) | ÷ | 15,040) |
| Dec 31, 2020 | 16.93% | = | 100 | × | 2,695) | ÷ | 15,920) |
| Dec 31, 2019 | 15.74% | = | 100 | × | 2,367) | ÷ | 15,034) |
| Dec 31, 2018 | 19.74% | = | 100 | × | 2,400) | ÷ | 12,161) |
| Dec 31, 2017 | 15.97% | = | 100 | × | 2,024) | ÷ | 12,676) |
| Dec 31, 2016 | 20.14% | = | 100 | × | 2,441) | ÷ | 12,123) |
| Dec 31, 2015 | 11.57% | = | 100 | × | 1,384) | ÷ | 11,958) |
| Dec 31, 2014 | 16.20% | = | 100 | × | 2,180) | ÷ | 13,459) |
| Dec 31, 2013 | 16.15% | = | 100 | × | 2,241) | ÷ | 13,876) |
| Dec 31, 2012 | 18.46% | = | 100 | × | 2,472) | ÷ | 13,394) |
| Dec 31, 2011 | 19.11% | = | 100 | × | 2,431) | ÷ | 12,724) |
| Dec 31, 2010 | 19.72% | = | 100 | × | 2,203) | ÷ | 11,172) |
| Dec 31, 2009 | 20.58% | = | 100 | × | 2,291) | ÷ | 11,134) |
| Dec 31, 2008 | 19.61% | = | 100 | × | 1,957) | ÷ | 9,979) |
| Dec 31, 2007 | 17.18% | = | 100 | × | 1,737) | ÷ | 10,112) |
| Dec 31, 2006 | 14.81% | = | 100 | × | 1,353) | ÷ | 9,138) |
| Dec 31, 2005 | 15.89% | = | 100 | × | 1,351) | ÷ | 8,507) |
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 return on assets (ROA) exhibited significant volatility between 2005 and 2022, characterized by an initial period of efficiency growth, a mid-term spike and correction, and a subsequent long-term decline in asset productivity.
- Efficiency Trends and Peaks
- A period of increasing asset efficiency is observed from 2006 to 2009, with ROA rising from 14.81% to a peak of 20.58%. This upward trajectory was maintained above 18% through 2012, suggesting a high capacity to generate earnings from the asset base during this interval.
- Volatility and Recovery
- A notable deviation occurred in 2015, where ROA dropped sharply to 11.57%, coinciding with a significant decrease in net income to 1.38 billion. This was followed by a rapid recovery in 2016, where ROA surged back to 20.14% as net income returned to 2.44 billion, marking the second-highest efficiency peak in the analyzed period.
- Asset Base Expansion
- Total assets grew consistently from 8.5 billion in 2005 to a peak of 15.9 billion in 2020. The nearly twofold increase in the total asset base created a larger denominator for the ROA calculation, which contributed to the downward pressure on the ratio in the latter years as net income failed to grow at a commensurate rate.
- Recent Performance Decline
- From 2018 to 2022, a general downward trend in ROA is evident. Despite a temporary increase to 16.93% in 2020, the ROA declined to 11.35% by 2022. This final decline is attributed to a combination of falling net income, which dropped to 1.78 billion in 2022, and a sustained high asset level of 15.7 billion, indicating a reduction in the overall profitability generated per unit of asset.
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Comparison to Competitors
Colgate-Palmolive Co., ROA, long-term trends, comparison to competitors
| Colgate-Palmolive Co. | Procter & Gamble Co. | |
|---|---|---|
| Dec 31, 2022 | 11.35% | 12.58% |
| Dec 31, 2021 | 14.40% | 11.99% |
| Dec 31, 2020 | 16.93% | 10.79% |
| Dec 31, 2019 | 15.74% | 3.39% |
| Dec 31, 2018 | 19.74% | 8.24% |
| Dec 31, 2017 | 15.97% | 12.73% |
| Dec 31, 2016 | 20.14% | 8.27% |
| Dec 31, 2015 | 11.57% | 5.43% |
| Dec 31, 2014 | 16.20% | 8.07% |
| Dec 31, 2013 | 16.15% | 8.12% |
| Dec 31, 2012 | 18.46% | 8.13% |
| Dec 31, 2011 | 19.11% | 8.53% |
| Dec 31, 2010 | 19.72% | 9.94% |
| Dec 31, 2009 | 20.58% | 9.96% |
| Dec 31, 2008 | 19.61% | 8.39% |
| Dec 31, 2007 | 17.18% | 7.49% |
| Dec 31, 2006 | 14.81% | 6.40% |
| Dec 31, 2005 | 15.89% | 11.79% |
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., ROA, long-term trends, comparison to industry (consumer staples)
| Colgate-Palmolive Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 11.35% | 8.95% |
| Dec 31, 2021 | 14.40% | 8.75% |
| Dec 31, 2020 | 16.93% | 8.24% |
| Dec 31, 2019 | 15.74% | 6.41% |
| Dec 31, 2018 | 19.74% | 8.40% |
| Dec 31, 2017 | 15.97% | 7.42% |
| Dec 31, 2016 | 20.14% | 7.94% |
| Dec 31, 2015 | 11.57% | 7.69% |
| Dec 31, 2014 | 16.20% | 7.96% |
| Dec 31, 2013 | 16.15% | 8.75% |
| Dec 31, 2012 | 18.46% | 8.63% |
| Dec 31, 2011 | 19.11% | 8.89% |
| Dec 31, 2010 | 19.72% | 9.45% |
| Dec 31, 2009 | 20.58% | 9.43% |
| Dec 31, 2008 | 19.61% | 9.11% |
| Dec 31, 2007 | 17.18% | 8.07% |
| Dec 31, 2006 | 14.81% | 8.42% |
| Dec 31, 2005 | 15.89% | 9.55% |
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).