Colgate-Palmolive Co. (NYSE:CL)

Debt to Equity Ratio

The debt to equity ratio displays notable fluctuations over the reported quarters. Initially, data is missing for early periods but becomes available from late 2019 onwards. The ratio spikes significantly to a high of 67.07 at one point and then sharply declines to lower levels around 10 to 29 in subsequent quarters. From 2021 onward, the ratio generally remains below 30, with some variability, including an increase to approximately 47.54 before falling back to the low twenties. The pattern suggests intermittent periods of higher leverage, followed by deleveraging phases.

Debt to Capital Ratio

This ratio remains relatively stable throughout the entire period, fluctuating narrowly mostly between 0.90 and 1.01. Starting near 1.09 in early 2019, it slightly declines to the 0.91-0.98 range over time, with minor increases and decreases but no drastic shifts. The closeness of the ratio to 1 signals that debt constitutes a consistent and substantial portion of the company's capital structure, without drastic shifts in capital composition.

Debt to Assets Ratio

There is a consistent pattern in the debt to assets ratio, which ranges mostly between 0.47 and 0.56 over the entire timeline. The ratio remains fairly stable with small increases and decreases, indicating that debt levels relative to total assets are steady. The slight rise toward the end of the period signals a modest increase in leverage in relation to the asset base.

Financial Leverage Ratio

The financial leverage ratio shows marked volatility. Early periods are missing data but once available, the ratio sees a high peak at 128.5, followed by a rapid decline to levels below 25 in later quarters. Subsequent quarters show recurring spikes, such as around 60.31 and 93.52, before returning again to the mid-20s to 40s range. This erratic behaviour could indicate fluctuating equity levels or changes in the use of debt financing affecting the leverage.

Overall Analysis

The leverage-related ratios reveal a pattern of significant variability in debt usage and leverage intensity. While debt relative to capital and assets stays relatively stable, equity relative to debt and the financial leverage ratio exhibit more substantial swings. This suggests the company experiences changes in its capital and equity structure, possibly due to operational financing decisions or external market conditions, influencing the leverage and risk profile at different times. The periods of elevated leverage tend to correct back toward more moderate levels, showing an ongoing effort to manage financial risk.

The financial data reveals several notable trends in the debt and equity structure over the examined periods.

Total Debt

The total debt amount exhibited fluctuations throughout the timeframe. Initially, total debt was relatively stable around 6,600 to 8,100 million USD from early 2019 through the end of 2020. Starting in 2021, debt levels showed a gradual upward trend, increasing from approximately 7,245 million USD at the end of 2021 to nearly 8,989 million USD by mid-2023. This gradual increase indicates a rising reliance on debt financing.

Total Shareholders’ Equity

This metric displayed significant volatility and negative values over many of the periods. Early 2019 data evidenced negative shareholders' equity with values improving slightly but remaining close to zero by end of 2019. There was a positive trend in 2020 as equity increased moderately, peaking around 743 million USD by the end of 2020. In subsequent years, equity values again became more erratic, including another period of near-zero or negative equity by 2023. The persistent volatility and negative figures suggest challenges in accumulating retained earnings or asset revaluations affecting equity.

Debt to Equity Ratio

Due to the volatility and frequent negativity or near-zero values in shareholders’ equity, the debt to equity ratio exhibits wide swings and, in some cases, very high or undefined values. Where data are available, the ratio shifts dramatically, for example around 67 in early 2019 to single-digit values during parts of 2020, and then back to higher ratios above 20 in several subsequent quarters. These fluctuations indicate periods where the company’s leverage was exceptionally high relative to equity, reflecting elevated financial risk during those times.

In summary, the company shows a rising total debt trend coupled with unstable shareholders’ equity levels, leading to significant variability in leverage ratios. This situation points to a cautious evaluation of financial stability given the high leverage and equity volatility observed over the examined quarters.

The financial data reveals several noteworthy trends related to the company's debt structure and capital base over the analyzed quarters.

Total Debt

The total debt exhibited fluctuations throughout the period, with an overall upward trajectory. Starting at approximately $6.66 billion in the first quarter of 2019, debt rose sharply in the third quarter of the same year before peaking around the fourth quarter of 2022 and first quarter of 2023 at roughly $8.9 billion. Temporary declines were observed in some quarters, but the general trend indicates increased leverage.

Total Capital

Total capital showed an increasing pattern over time, moving from about $6.1 billion at the beginning of 2019 to approximately $8.9 billion by mid-2023. The increments were relatively steady, with few periods indicating minor contractions. This growth suggests the company expanded its capital base, potentially leveraging for growth or operational needs.

Debt to Capital Ratio

The debt to capital ratio maintained a relatively stable range, fluctuating close to 1.00 throughout the period. Initially slightly above one in early 2019, it trended downward through 2020, reaching a low near 0.91 by the end of 2020. From 2021 onward, the ratio hovered around 0.92 to 1.01, indicating a balanced, though at times elevated, proportion of debt relative to capital. The periods where the ratio approached or slightly exceeded one suggest debt levels were roughly equal to or marginally greater than total capital in those quarters.

In summary, the company has experienced growth in both total debt and total capital, with total debt rising at a pace that keeps the debt to capital ratio around unity. This indicates a consistent leverage strategy without significant deleveraging or shifts toward equity financing during the time frame analyzed. The relatively stable leverage ratio reflects a maintained financial structure focused on balancing debt and capital resources.

The analysis of the quarterly financial metrics indicates several noteworthy trends and developments related to the company's financial structure over the examined periods.

Total Debt

The total debt exhibited fluctuations but generally showed an increasing trend throughout the time frame. Starting at approximately 6.7 billion US dollars in early 2019, it rose notably by the final quarter of 2022 and into 2023, reaching close to 9 billion US dollars. This rise suggests the company has been incrementally increasing its leverage or borrowing during these periods.

Total Assets

Total assets demonstrated a consistent, though moderately variable, upward trajectory overall. The asset base grew from nearly 12.9 billion US dollars at the start of 2019 to over 16.2 billion US dollars by mid-2023. Some minor decreases and stagnations occurred around late 2021 and early 2022, but the general pattern points to asset growth supporting the company’s operations and investments.

Debt to Assets Ratio

The debt to assets ratio fluctuated between approximately 0.47 and 0.56 across the reported periods, reflecting moderate variation in leverage relative to the asset base. Early on, the ratio decreased from around 0.52 to as low as 0.47 toward mid-2020, indicating a period of relative deleveraging or asset growth outpacing debt increases. However, from late 2021 forward, the ratio trended upward, rising to about 0.55 by mid-2023. This suggests a renewed increase in leverage, with debt levels rising faster than assets during this later period.

In summary, the company has shown a generally increasing scale of operations as reflected by growing total assets, coupled with rising debt levels particularly in the most recent periods examined. The debt to asset ratio’s upward movement in the latest quarters signals increasing leverage risk and implies that the company might be using more debt financing relative to its asset base than previously. Monitoring this trend will be important for assessing financial risk and capital structure strategy going forward.

The reviewed quarterly financial data exhibits notable fluctuations and trends in key balance sheet metrics over the observed periods.

Total Assets

The total assets show a general upward trajectory from early 2019 through mid-2023. Starting at approximately $12.9 billion in the first quarter of 2019, total assets steadily increased to peak above $16 billion by late 2022 and early 2023. This indicates a persistent expansion of the asset base over the timeframe, with some minor fluctuations particularly in the final quarters of 2022 and 2023 where the values slightly oscillated but remained elevated relative to 2019.

Total Shareholders’ Equity

The shareholders’ equity figures reveal considerable volatility, as well as a pattern of negative to positive swings. Initially, the equity was negative at about -$552 million in early 2019, improving towards positive territory by the end of 2019. Throughout 2020 and 2021, shareholders’ equity turned positive and exhibited growth peaks mid-2020 (up to $743 million) and late 2021 (above $600 million). However, this positive trend reversed partially in 2022 and 2023, where equity again approached negative levels, hitting lows near -$64 million by the middle of 2023. This volatility suggests periods of financial restructuring or losses impacting retained earnings or other equity components.

Financial Leverage

Financial leverage ratios were sporadically reported but show significant variability when available. The highest leverage noted was an exceptionally high figure of 128.5 early on, which then dropped dramatically to a range between approximately 20 and 60 during most subsequent periods. Some spikes in leverage, such as nearly 94 in mid-2022, indicate periods of increased reliance on debt relative to equity. These fluctuations imply shifts in capital structure strategy or impacts from changes in equity base rather than large swings in debt levels alone.

Overall, the company demonstrates asset growth amidst equity volatility and fluctuating financial leverage ratios, reflecting dynamic capital structure management and varying profitability or valuation pressures across the quarters.