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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 59.42% 59.39% 60.05% 60.04% 58.62%
Operating profit margin 22.65% 23.76% 23.22% 25.25% 17.39%
Net profit margin 15.08% 15.44% 13.10% 16.06% 8.63%
Return on Investment
Return on equity (ROE) 2,023.08%
Return on assets (ROA) 15.74% 19.74% 15.97% 20.14% 11.57%

Based on: 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), 10-K (filing date: 2016-02-18).

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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Colgate-Palmolive Co.’s operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Colgate-Palmolive Co.’s net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity.
ROA A profitability ratio calculated as net income divided by total assets. Colgate-Palmolive Co.’s ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross profit 9,325  9,231  9,280  9,123  9,399 
Net sales 15,693  15,544  15,454  15,195  16,034 
Profitability Ratio
Gross profit margin1 59.42% 59.39% 60.05% 60.04% 58.62%
Benchmarks
Gross Profit Margin, Competitors2
Estée Lauder Cos. Inc. 77.21% 79.22% 79.39% 80.63% 80.51%
Kimberly-Clark Corp. 32.71% 30.28% 35.89% 36.54% 35.63%
Nike Inc. 44.67% 43.84% 44.58% 46.24% 45.97%

Based on: 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), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 9,325 ÷ 15,693 = 59.42%

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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Operating profit 3,554  3,694  3,589  3,837  2,789 
Net sales 15,693  15,544  15,454  15,195  16,034 
Profitability Ratio
Operating profit margin1 22.65% 23.76% 23.22% 25.25% 17.39%
Benchmarks
Operating Profit Margin, Competitors2
Estée Lauder Cos. Inc. 15.56% 15.00% 14.31% 14.30% 14.90%
Kimberly-Clark Corp. 16.21% 12.06% 18.07% 18.22% 8.68%
Nike Inc. 12.20% 12.21% 13.83% 13.91% 13.64%
Operating Profit Margin, Sector
Personal Goods 15.47% 14.77% 16.68% 17.22% 13.40%
Operating Profit Margin, Industry
Consumer Goods 16.63% 18.32% 18.71% 18.06% 17.36%

Based on: 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), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 3,554 ÷ 15,693 = 22.65%

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,367  2,400  2,024  2,441  1,384 
Net sales 15,693  15,544  15,454  15,195  16,034 
Profitability Ratio
Net profit margin1 15.08% 15.44% 13.10% 16.06% 8.63%
Benchmarks
Net Profit Margin, Competitors2
Estée Lauder Cos. Inc. 12.01% 8.10% 10.56% 9.90% 10.10%
Kimberly-Clark Corp. 11.69% 7.63% 12.48% 11.90% 5.45%
Nike Inc. 10.30% 5.31% 12.34% 11.61% 10.70%
Net Profit Margin, Sector
Personal Goods 11.73% 8.15% 12.26% 12.31% 8.89%
Net Profit Margin, Industry
Consumer Goods 10.55% 14.41% 13.32% 14.91% 11.92%

Based on: 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), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Net profit margin = 100 × Net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 2,367 ÷ 15,693 = 15.08%

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,367  2,400  2,024  2,441  1,384 
Total Colgate-Palmolive Company shareholders’ equity 117  (102) (60) (243) (299)
Profitability Ratio
ROE1 2,023.08%
Benchmarks
ROE, Competitors2
Estée Lauder Cos. Inc. 40.70% 23.63% 28.49% 31.20% 29.89%
Kimberly-Clark Corp. 362.16%
Nike Inc. 44.57% 19.70% 34.17% 30.67% 25.76%
ROE, Sector
Personal Goods 76.52% 48.55% 56.40% 61.23% 42.57%
ROE, Industry
Consumer Goods 32.30% 40.53% 36.36% 40.10% 33.13%

Based on: 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), 10-K (filing date: 2016-02-18).

1 2019 Calculation
ROE = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × 2,367 ÷ 117 = 2,023.08%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity.

Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company 2,367  2,400  2,024  2,441  1,384 
Total assets 15,034  12,161  12,676  12,123  11,958 
Profitability Ratio
ROA1 15.74% 19.74% 15.97% 20.14% 11.57%
Benchmarks
ROA, Competitors2
Estée Lauder Cos. Inc. 13.57% 8.82% 10.80% 12.08% 13.22%
Kimberly-Clark Corp. 14.11% 9.71% 15.04% 14.83% 6.83%
Nike Inc. 16.99% 8.58% 18.23% 17.57% 15.15%
ROA, Sector
Personal Goods 15.39% 11.09% 15.63% 16.53% 11.93%
ROA, Industry
Consumer Goods 7.97% 10.76% 9.77% 11.16% 9.56%

Based on: 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), 10-K (filing date: 2016-02-18).

1 2019 Calculation
ROA = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total assets
= 100 × 2,367 ÷ 15,034 = 15.74%

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.