Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Colgate-Palmolive Co., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a generally stable pattern from the first quarter of 2019 through the first half of 2023. Initial values were around 4.0 to 4.2, increasing to a peak near 4.7 by late 2021 and early 2022. Subsequently, the ratio showed a gradual decline, with a notable decrease in late 2022 dropping to approximately 4.17 before slightly recovering to about 4.21 by mid-2023. This suggests consistent, but somewhat fluctuating efficiency in utilizing fixed assets to generate sales over the observed periods.
- Total Asset Turnover
- Total asset turnover began at around 1.2 in early 2019, then declined through 2019 to approximately 1.03-1.04 by the end of that year. From 2020 onwards, the ratio demonstrated a mild increasing trend, rising from near 1.03 in early 2020 to roughly 1.15 by mid-2023. Despite minor fluctuations, this indicates a progressive improvement in the company's ability to generate revenue from its overall asset base.
- Equity Turnover
- The equity turnover ratio data is sporadic and intermittent, with some quarters missing values. When available, the ratio displays significant volatility, with reported figures ranging from approximately 22 to over 134 across different quarters. Peaks occurred notably in early 2019 and again in early 2022, indicating periods of highly efficient use of equity to generate revenue. However, the fluctuations and gaps suggest instability or inconsistency in this metric, potentially influenced by changes in equity structure or reporting periods.
- Summary
- Overall, the company’s operational efficiency as measured by net fixed asset and total asset turnover ratios shows moderate stability with an upward bias in total asset turnover over the longer term. The net fixed asset turnover ratio's slight decline in recent periods warrants attention, as it may indicate diminishing utilization of fixed assets. The equity turnover ratio’s irregular pattern advises cautious interpretation, suggesting further investigation into underlying factors affecting equity management and revenue generation could be beneficial.
Net Fixed Asset Turnover
Colgate-Palmolive Co., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2023 Calculation
Net fixed asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally increasing trend over the examined periods. Starting at approximately $3.88 billion in the first quarter of 2019, sales grew steadily, reaching $4.82 billion by mid-2023. While minor fluctuations are present, particularly around mid-2020 where a slight dip occurred, the overall trajectory is positive. This suggests resilience and growth in revenue generation over the five-year span.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment displayed some variability with a mild downward trend initially, declining from about $3.82 billion in early 2019 to a low near $3.49 billion in early 2020. From mid-2020 onward, an upward trend is evident, with values increasing consistently and peaking around $4.43 billion by mid-2023. This pattern indicates a phase of asset divestment or depreciation followed by reinvestment or acquisition of fixed assets in recent years.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of fixed assets in generating sales, remained relatively stable with some minor fluctuations. The ratio started at 4.04 in the first quarter of 2019, increased steadily to a peak near 4.77 by late 2021, then showed a slight decline to approximately 4.2 by mid-2023. Despite this recent dip, the ratio overall suggests sustained effectiveness in utilizing fixed assets to generate revenue, although the recent trend may warrant closer monitoring to assess any emerging efficiency challenges.
Total Asset Turnover
Colgate-Palmolive Co., total asset turnover calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2023 Calculation
Total asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends regarding net sales, total assets, and total asset turnover ratios over the observed periods.
- Net Sales
- Net sales demonstrated a generally positive trend from March 2019 through June 2023. The figures started at approximately $3,884 million in March 2019, with periodic increases and minor fluctuations. A notable steady increase occurred from March 2020 onwards, where net sales rose from $4,097 million to $4,822 million by June 2023. This upward movement suggests sustained growth in the company's revenue generation capabilities over this timeframe.
- Total Assets
- Total assets showed a gradual increase from approximately $12,883 million at the beginning of the period to around $16,227 million by June 2023, with some fluctuations. The asset base expanded relatively steadily from 2019 to early 2021, peaking near $15,999 million in June 2021. However, a slight reduction and volatility occurred in late 2021 and early 2022, followed by a recovery and generally higher asset levels throughout 2022 and the first half of 2023. This pattern indicates ongoing investment and asset accumulation, albeit with some short-term variability.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency in utilizing assets to generate sales, varied between 1.03 and 1.16 during the entire period. Early 2019 exhibited higher turnover ratios (around 1.2), followed by a decline towards 1.03 in late 2019, indicating less efficient asset utilization. From 2020 onwards, the ratio stabilized mostly between 1.05 and 1.16, with a noticeable improvement in late 2021 (up to 1.16) and maintaining levels above 1.10 in subsequent periods. These metrics imply an improvement in operational efficiency in converting assets into sales over time.
In summary, the data reflects a pattern of steady revenue growth accompanied by an expanding asset base and improved asset utilization efficiency. While there were fluctuations in asset levels, the general trend suggests effective management of assets to support increased sales volume. The improvement in total asset turnover ratios further supports the conclusion that the company has become more efficient in leveraging its resources to generate revenue in recent years.
Equity Turnover
Colgate-Palmolive Co., equity turnover calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||
| Total Colgate-Palmolive Company shareholders’ equity | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2023 Calculation
Equity turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Total Colgate-Palmolive Company shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net sales trend
- Net sales show a generally upward trend over the analyzed periods, increasing from 3,884 million USD in the first quarter of 2019 to 4,822 million USD in the second quarter of 2023. The growth is characterized by minor fluctuations quarter-to-quarter, with a more pronounced increase observed starting in the second half of 2021 continuing through 2023.
- Total shareholders’ equity trend
- Shareholders' equity fluctuates significantly, beginning with negative values in early 2019, improving to positive territory by the end of 2019, then experiencing variability through 2020 and 2021 with both positive and negative figures. Substantial volatility is noted, with sharp declines and recoveries, ending with slightly negative equity in mid-2023. This suggests instability or potential capital management activities affecting equity levels.
- Equity turnover ratio analysis
- The equity turnover ratio displayed erratic values with some missing data, and unusually high spikes noted in the first quarter of 2019 (134.13) and the first quarter of 2022 (105.36). Throughout other quarters, the ratio varies widely, ranging mostly between approximately 20 and 60. This volatility may reflect changes in asset efficiency related to fluctuating stockholders’ equity, which itself is highly variable.
- Overall observations
- The company maintains growing sales, indicating sustained revenue generation. However, the unstable shareholders' equity indicates challenges in managing equity capital or retained earnings. The irregular equity turnover ratio supports the observation that asset utilization relative to equity has been inconsistent, likely impacted by the wide swings in equity values. Such patterns warrant further investigation into the causes of equity variability and the potential impact on financial stability and performance metrics.