Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Colgate-Palmolive Co. (NYSE:CL)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Colgate-Palmolive Co., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 60.82% 59.42% 59.39% 60.05% 60.04%
Operating profit margin 23.59% 22.65% 23.76% 23.22% 25.25%
Net profit margin 16.36% 15.08% 15.44% 13.10% 16.06%
Return on Investment
Return on equity (ROE) 362.72% 2,023.08%
Return on assets (ROA) 16.93% 15.74% 19.74% 15.97% 20.14%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Colgate-Palmolive Co.’s gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Colgate-Palmolive Co.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Colgate-Palmolive Co.’s net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Colgate-Palmolive Co.’s ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Gross Profit Margin

Colgate-Palmolive Co., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Gross profit 10,017  9,325  9,231  9,280  9,123 
Net sales 16,471  15,693  15,544  15,454  15,195 
Profitability Ratio
Gross profit margin1 60.82% 59.42% 59.39% 60.05% 60.04%
Benchmarks
Gross Profit Margin, Competitors2
Estée Lauder Cos. Inc. 75.15% 77.21% 79.22% 79.39% 80.63%
Kimberly-Clark Corp. 35.64% 32.71% 30.28% 35.89% 36.54%
Nike Inc. 43.42% 44.67% 43.84% 44.58% 46.24%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 10,017 ÷ 16,471 = 60.82%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Colgate-Palmolive Co.’s gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Operating Profit Margin

Colgate-Palmolive Co., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating profit 3,885  3,554  3,694  3,589  3,837 
Net sales 16,471  15,693  15,544  15,454  15,195 
Profitability Ratio
Operating profit margin1 23.59% 22.65% 23.76% 23.22% 25.25%
Benchmarks
Operating Profit Margin, Competitors2
Estée Lauder Cos. Inc. 4.24% 15.56% 15.00% 14.31% 14.30%
Kimberly-Clark Corp. 16.95% 16.21% 12.06% 18.07% 18.22%
Nike Inc. 8.33% 12.20% 12.21% 13.83% 13.91%
Operating Profit Margin, Sector
Personal Goods 12.43% 15.47% 14.77% 16.68% 17.22%
Operating Profit Margin, Industry
Consumer Goods 15.48% 13.12% 13.83% 15.13% 14.25%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 3,885 ÷ 16,471 = 23.59%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Colgate-Palmolive Co.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Net Profit Margin

Colgate-Palmolive Co., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,441 
Net sales 16,471  15,693  15,544  15,454  15,195 
Profitability Ratio
Net profit margin1 16.36% 15.08% 15.44% 13.10% 16.06%
Benchmarks
Net Profit Margin, Competitors2
Estée Lauder Cos. Inc. 4.79% 12.01% 8.10% 10.56% 9.90%
Kimberly-Clark Corp. 12.29% 11.69% 7.63% 12.48% 11.90%
Nike Inc. 6.79% 10.30% 5.31% 12.34% 11.61%
Net Profit Margin, Sector
Personal Goods 9.47% 11.73% 8.15% 12.26% 12.31%
Net Profit Margin, Industry
Consumer Goods 11.43% 8.77% 11.59% 8.53% 12.03%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Net profit margin = 100 × Net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 2,695 ÷ 16,471 = 16.36%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Colgate-Palmolive Co.’s net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Return on Equity (ROE)

Colgate-Palmolive Co., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,441 
Total Colgate-Palmolive Company shareholders’ equity 743  117  (102) (60) (243)
Profitability Ratio
ROE1 362.72% 2,023.08%
Benchmarks
ROE, Competitors2
Estée Lauder Cos. Inc. 17.38% 40.70% 23.63% 28.49% 31.20%
Kimberly-Clark Corp. 375.72% 362.16%
Nike Inc. 31.52% 44.57% 19.70% 34.17% 30.67%
ROE, Sector
Personal Goods 61.91% 76.52% 48.55% 56.40% 61.23%
ROE, Industry
Consumer Goods 31.95% 26.80% 34.61% 25.11% 34.45%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

1 2020 Calculation
ROE = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × 2,695 ÷ 743 = 362.72%

2 Click competitor name to see calculations.


Return on Assets (ROA)

Colgate-Palmolive Co., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,695  2,367  2,400  2,024  2,441 
Total assets 15,920  15,034  12,161  12,676  12,123 
Profitability Ratio
ROA1 16.93% 15.74% 19.74% 15.97% 20.14%
Benchmarks
ROA, Competitors2
Estée Lauder Cos. Inc. 3.85% 13.57% 8.82% 10.80% 12.08%
Kimberly-Clark Corp. 13.42% 14.11% 9.71% 15.04% 14.83%
Nike Inc. 8.10% 16.99% 8.58% 18.23% 17.57%
ROA, Sector
Personal Goods 10.02% 15.39% 11.09% 15.63% 16.53%
ROA, Industry
Consumer Goods 7.21% 6.06% 8.09% 5.90% 8.70%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23).

1 2020 Calculation
ROA = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total assets
= 100 × 2,695 ÷ 15,920 = 16.93%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Colgate-Palmolive Co.’s ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.