Return on Equity (ROE)
since 2005
Calculation
Colgate-Palmolive Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Colgate-Palmolive Company1 | ÷ | Total Colgate-Palmolive Company shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 445.14% | = | 100 | × | 1,785) | ÷ | 401) |
| Dec 31, 2021 | 355.67% | = | 100 | × | 2,166) | ÷ | 609) |
| Dec 31, 2020 | 362.72% | = | 100 | × | 2,695) | ÷ | 743) |
| Dec 31, 2019 | 2,023.08% | = | 100 | × | 2,367) | ÷ | 117) |
| Dec 31, 2018 | — | = | 100 | × | 2,400) | ÷ | (102) |
| Dec 31, 2017 | — | = | 100 | × | 2,024) | ÷ | (60) |
| Dec 31, 2016 | — | = | 100 | × | 2,441) | ÷ | (243) |
| Dec 31, 2015 | — | = | 100 | × | 1,384) | ÷ | (299) |
| Dec 31, 2014 | 190.39% | = | 100 | × | 2,180) | ÷ | 1,145) |
| Dec 31, 2013 | 97.22% | = | 100 | × | 2,241) | ÷ | 2,305) |
| Dec 31, 2012 | 112.93% | = | 100 | × | 2,472) | ÷ | 2,189) |
| Dec 31, 2011 | 102.36% | = | 100 | × | 2,431) | ÷ | 2,375) |
| Dec 31, 2010 | 82.36% | = | 100 | × | 2,203) | ÷ | 2,675) |
| Dec 31, 2009 | 73.52% | = | 100 | × | 2,291) | ÷ | 3,116) |
| Dec 31, 2008 | 101.83% | = | 100 | × | 1,957) | ÷ | 1,922) |
| Dec 31, 2007 | 76.00% | = | 100 | × | 1,737) | ÷ | 2,286) |
| Dec 31, 2006 | 95.92% | = | 100 | × | 1,353) | ÷ | 1,411) |
| Dec 31, 2005 | 100.10% | = | 100 | × | 1,351) | ÷ | 1,350) |
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 consistent net income generation contrasted with extreme volatility in shareholders' equity, which has resulted in mathematically distorted return on equity (ROE) figures.
- Net Income Trends
- Net income demonstrated a general growth trend from 2005 to 2012, increasing from 1,351 million USD to 2,472 million USD. Despite a significant dip to 1,384 million USD in 2015, profitability remained robust for most of the period, generally fluctuating between 2,000 million USD and 2,700 million USD from 2009 through 2021, before declining to 1,785 million USD in 2022.
- Shareholders' Equity Volatility
- Total shareholders' equity experienced a severe downward trajectory following a peak of 3,116 million USD in 2009. Equity levels declined sharply starting in 2014, leading to a period of negative equity from 2015 to 2018, with the lowest point occurring in 2015 at negative 299 million USD. Although equity returned to positive values in 2019, it remained substantially lower than the levels maintained between 2005 and 2013, ending at 401 million USD in 2022.
- Return on Equity (ROE) Interpretation
- ROE exhibited high values throughout the period, though the drivers of these values shifted. From 2005 to 2013, ROE remained relatively stable between 73% and 113%. Between 2015 and 2018, the ROE became uncalculable or non-reported due to negative equity. From 2019 onward, the combination of strong net income and a depleted equity base led to an extreme inflation of the ROE ratio, peaking at 2,023.08% in 2019 and remaining above 350% through 2022. These figures indicate that the high ROE in later years is a function of a very small equity denominator rather than a proportional increase in operational efficiency.
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Comparison to Competitors
Colgate-Palmolive Co., ROE, long-term trends, comparison to competitors
| Colgate-Palmolive Co. | Procter & Gamble Co. | |
|---|---|---|
| Dec 31, 2022 | 445.14% | 31.64% |
| Dec 31, 2021 | 355.67% | 30.85% |
| Dec 31, 2020 | 362.72% | 28.00% |
| Dec 31, 2019 | 2,023.08% | 8.26% |
| Dec 31, 2018 | — | 18.64% |
| Dec 31, 2017 | — | 27.77% |
| Dec 31, 2016 | — | 18.33% |
| Dec 31, 2015 | — | 11.27% |
| Dec 31, 2014 | 190.39% | 16.82% |
| Dec 31, 2013 | 97.22% | 16.62% |
| Dec 31, 2012 | 112.93% | 16.95% |
| Dec 31, 2011 | 102.36% | 17.44% |
| Dec 31, 2010 | 82.36% | 20.84% |
| Dec 31, 2009 | 73.52% | 21.29% |
| Dec 31, 2008 | 101.83% | 17.38% |
| Dec 31, 2007 | 76.00% | 15.49% |
| Dec 31, 2006 | 95.92% | 13.80% |
| Dec 31, 2005 | 100.10% | 41.52% |
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., ROE, long-term trends, comparison to industry (consumer staples)
| Colgate-Palmolive Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 445.14% | 32.10% |
| Dec 31, 2021 | 355.67% | 31.40% |
| Dec 31, 2020 | 362.72% | 30.98% |
| Dec 31, 2019 | 2,023.08% | 22.71% |
| Dec 31, 2018 | — | 28.05% |
| Dec 31, 2017 | — | 25.14% |
| Dec 31, 2016 | — | 25.00% |
| Dec 31, 2015 | — | 23.15% |
| Dec 31, 2014 | 190.39% | 23.21% |
| Dec 31, 2013 | 97.22% | 24.09% |
| Dec 31, 2012 | 112.93% | 23.55% |
| Dec 31, 2011 | 102.36% | 23.75% |
| Dec 31, 2010 | 82.36% | 24.19% |
| Dec 31, 2009 | 73.52% | 23.20% |
| Dec 31, 2008 | 101.83% | 22.49% |
| Dec 31, 2007 | 76.00% | 18.15% |
| Dec 31, 2006 | 95.92% | 18.58% |
| Dec 31, 2005 | 100.10% | 22.40% |
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).