Total Asset Turnover
since 2005
Calculation
Colgate-Palmolive Co., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.14 | = | 17,967) | ÷ | 15,731) |
| Dec 31, 2021 | 1.16 | = | 17,421) | ÷ | 15,040) |
| Dec 31, 2020 | 1.03 | = | 16,471) | ÷ | 15,920) |
| Dec 31, 2019 | 1.04 | = | 15,693) | ÷ | 15,034) |
| Dec 31, 2018 | 1.28 | = | 15,544) | ÷ | 12,161) |
| Dec 31, 2017 | 1.22 | = | 15,454) | ÷ | 12,676) |
| Dec 31, 2016 | 1.25 | = | 15,195) | ÷ | 12,123) |
| Dec 31, 2015 | 1.34 | = | 16,034) | ÷ | 11,958) |
| Dec 31, 2014 | 1.28 | = | 17,277) | ÷ | 13,459) |
| Dec 31, 2013 | 1.26 | = | 17,420) | ÷ | 13,876) |
| Dec 31, 2012 | 1.28 | = | 17,085) | ÷ | 13,394) |
| Dec 31, 2011 | 1.32 | = | 16,734) | ÷ | 12,724) |
| Dec 31, 2010 | 1.39 | = | 15,564) | ÷ | 11,172) |
| Dec 31, 2009 | 1.38 | = | 15,327) | ÷ | 11,134) |
| Dec 31, 2008 | 1.54 | = | 15,330) | ÷ | 9,979) |
| Dec 31, 2007 | 1.36 | = | 13,790) | ÷ | 10,112) |
| Dec 31, 2006 | 1.34 | = | 12,238) | ÷ | 9,138) |
| Dec 31, 2005 | 1.34 | = | 11,397) | ÷ | 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 analysis of financial data from 2005 to 2022 reveals a long-term decline in asset efficiency, characterized by a gradual reduction in the total asset turnover ratio. While the company maintained a relatively stable efficiency profile for over a decade, a more pronounced deterioration in the ratio is observed in the latter part of the period.
- Asset Turnover Efficiency Phases
- From 2005 to 2008, asset efficiency improved, reaching a peak ratio of 1.54 in 2008. Between 2009 and 2018, the ratio remained relatively stable, generally fluctuating between 1.22 and 1.39. However, a significant decline occurred starting in 2019, with the ratio dropping to 1.04 and 1.03 in 2019 and 2020, respectively. Although a slight recovery to 1.14 was noted by 2022, the efficiency levels remain well below the historical averages seen in the first decade of the data set.
- Correlation Between Net Sales and Total Assets
- Net sales exhibited a general upward trajectory from 2005 (US$ 11,397 million) through 2013 (US$ 17,420 million), followed by a period of volatility and a subsequent recovery to US$ 17,967 million by 2022. In contrast, the total asset base grew from US$ 8,507 million in 2005 to US$ 15,731 million in 2022. The decline in asset turnover since 2019 is primarily attributable to the total asset base expanding more rapidly than the corresponding growth in net sales, suggesting a decrease in the productivity of the company's invested capital.
- Observations on Asset Base Volatility
- A notable contraction in total assets occurred between 2013 and 2015, where assets decreased from US$ 13,876 million to US$ 11,958 million. This reduction in the denominator resulted in a temporary increase in the total asset turnover ratio to 1.34 in 2015. Following this period, assets grew steadily, peaking at US$ 15,920 million in 2020, which contributed to the lowest recorded turnover ratios in the analyzed period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Colgate-Palmolive Co., total asset turnover, long-term trends, comparison to competitors
| Colgate-Palmolive Co. | Procter & Gamble Co. | |
|---|---|---|
| Dec 31, 2022 | 1.14 | 0.68 |
| Dec 31, 2021 | 1.16 | 0.64 |
| Dec 31, 2020 | 1.03 | 0.59 |
| Dec 31, 2019 | 1.04 | 0.59 |
| Dec 31, 2018 | 1.28 | 0.56 |
| Dec 31, 2017 | 1.22 | 0.54 |
| Dec 31, 2016 | 1.25 | 0.51 |
| Dec 31, 2015 | 1.34 | 0.59 |
| Dec 31, 2014 | 1.28 | 0.58 |
| Dec 31, 2013 | 1.26 | 0.60 |
| Dec 31, 2012 | 1.28 | 0.63 |
| Dec 31, 2011 | 1.32 | 0.60 |
| Dec 31, 2010 | 1.39 | 0.62 |
| Dec 31, 2009 | 1.38 | 0.59 |
| Dec 31, 2008 | 1.54 | 0.58 |
| Dec 31, 2007 | 1.36 | 0.55 |
| Dec 31, 2006 | 1.34 | 0.50 |
| Dec 31, 2005 | 1.34 | 0.92 |
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., total asset turnover, long-term trends, comparison to industry (consumer staples)
| Colgate-Palmolive Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 1.14 | 1.47 |
| Dec 31, 2021 | 1.16 | 1.41 |
| Dec 31, 2020 | 1.03 | 1.32 |
| Dec 31, 2019 | 1.04 | 1.39 |
| Dec 31, 2018 | 1.28 | 1.39 |
| Dec 31, 2017 | 1.22 | 1.34 |
| Dec 31, 2016 | 1.25 | 1.35 |
| Dec 31, 2015 | 1.34 | 1.37 |
| Dec 31, 2014 | 1.28 | 1.32 |
| Dec 31, 2013 | 1.26 | 1.30 |
| Dec 31, 2012 | 1.28 | 1.30 |
| Dec 31, 2011 | 1.32 | 1.27 |
| Dec 31, 2010 | 1.39 | 1.24 |
| Dec 31, 2009 | 1.38 | 1.36 |
| Dec 31, 2008 | 1.54 | 1.35 |
| Dec 31, 2007 | 1.36 | 1.32 |
| Dec 31, 2006 | 1.34 | 1.33 |
| Dec 31, 2005 | 1.34 | 1.52 |
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).