Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Colgate-Palmolive Co., profitability 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).
The analysis of the quarterly financial performance reveals several notable trends across key profitability and efficiency metrics.
- Gross Profit Margin
- The gross profit margin demonstrated a generally stable trend with marginal fluctuations between 59% and 61% from early 2019 through 2021. Beginning in 2022, the margin exhibited a gradual decline from approximately 59% to around 56.65% by the first half of 2023. This downward trajectory suggests increasing cost pressures or changes in pricing strategy impacting the core profitability of the products.
- Operating Profit Margin
- Operating profit margin remained relatively stable around 22-24% during 2019 and 2020, peaking near 23.8% in the third quarter of 2020. However, starting in 2021, a significant downward trend emerged, with the margin decreasing continuously to approximately 16% by mid-2023. This decline points to rising operating expenses or reduced operational efficiency that may be eroding the company’s earnings before interest and taxes.
- Net Profit Margin
- The net profit margin followed a comparable pattern to the operating margin. It ranged between 15% and 16.5% throughout 2019 and most of 2020, then sharply decreased from 2021 onwards, reaching near 8% by mid-2023. The sustained decline in net profitability could reflect higher costs, increased interest expenses, or other factors negatively affecting the bottom line.
- Return on Assets (ROA)
- ROA displayed a modest but consistent decrease over the examined period. Initially above 18% in early 2019, it declined steadily to approximately 9.23% by June 2023. This decline indicates a reduced ability to generate profit from the company’s asset base, potentially due to lower profit margins and/or asset growth outpacing net income growth.
- Return on Equity (ROE)
- Data for ROE appear inconsistent or anomalous for early periods, showing extremely high and volatile values, which may be due to data errors or unusual accounting effects. In the latter periods, ROE values indicate a degree of variability but generally present a lower range consistent with the declining profitability trends observed in other metrics. Overall, the reliability of the ROE data is uncertain based on the figures presented.
In summary, the examined financial ratios illustrate a period of stable profitability up to 2020, followed by a clear weakening trend through 2023. Margins and returns have declined notably, suggesting increased cost pressures, operational challenges, or market conditions affecting financial performance. The downward trend in both profit margins and returns on assets highlights challenges in maintaining efficiency and profit generation from assets and equity.
Return on Sales
Return on Investment
Gross Profit Margin
Colgate-Palmolive Co., gross profit margin 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) | ||||||||||||||||||||||||
| Gross profit | 2,787) | 2,712) | 2,574) | 2,548) | 2,554) | 2,572) | 2,559) | 2,623) | 2,556) | 2,637) | 2,643) | 2,540) | 2,369) | 2,465) | 2,414) | 2,316) | 2,308) | 2,287) | ||||||
| Net sales | 4,822) | 4,770) | 4,629) | 4,455) | 4,484) | 4,399) | 4,403) | 4,414) | 4,260) | 4,344) | 4,324) | 4,153) | 3,897) | 4,097) | 4,015) | 3,928) | 3,866) | 3,884) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | 56.87% | 56.65% | 57.04% | 57.68% | 58.24% | 59.00% | 59.55% | 60.31% | 60.75% | 60.95% | 60.82% | 60.56% | 60.01% | 59.74% | 59.42% | 59.16% | 59.18% | 59.06% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | 46.60% | 47.01% | 47.43% | 48.32% | 49.27% | 50.31% | 51.25% | 51.57% | 51.26% | 50.78% | — | — | — | — | — | — | — | — | ||||||
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
Gross profit margin = 100
× (Gross profitQ2 2023
+ Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × (2,787 + 2,712 + 2,574 + 2,548)
÷ (4,822 + 4,770 + 4,629 + 4,455)
= 56.87%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals noteworthy trends in sales, gross profit, and gross profit margin over the examined periods.
- Net Sales
- Net sales displayed a generally upward trajectory from the first quarter of 2019 through the second quarter of 2023. Starting at approximately $3.88 billion in March 2019, sales experienced modest fluctuations but maintained growth momentum, reaching a peak of about $4.82 billion by June 2023. This steady increase suggests consistent market demand and effective sales strategies over the observed timeframe.
- Gross Profit
- Gross profit mirrored the sales trend, increasing from around $2.29 billion in March 2019 to approximately $2.79 billion in June 2023. Intermittent quarters showed minor dips or plateaus, but the overall direction was positive. Notably, there was a significant jump in gross profit during the last quarter of 2020, which was maintained with slight variations in subsequent periods. This pattern indicates successful cost management alongside revenue growth.
- Gross Profit Margin
- Contrasting with the continuous rise in net sales and gross profit, the gross profit margin exhibited a declining trend over the same period. The margin started near 59.06% in March 2019, peaked around 60.95% in the first quarter of 2021, and then steadily decreased to approximately 56.87% by June 2023. This downward trend in margin percentage suggests increasing cost pressures or shifts in product mix affecting profitability per unit of sales despite growing absolute gross profit.
In summary, while top-line revenues and gross profits have grown notably, indicating overall business expansion, the erosion in gross profit margin signals potential challenges in managing production or procurement costs, pricing strategies, or competitive pressures. Continuous monitoring of these margins will be essential to maintain profitability alongside revenue growth.
Operating Profit Margin
Colgate-Palmolive Co., operating profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Operating profit | 974) | 909) | 202) | 947) | 884) | 860) | 365) | 967) | 996) | 1,004) | 969) | 1,018) | 946) | 952) | 931) | 856) | 888) | 879) | ||||||
| Net sales | 4,822) | 4,770) | 4,629) | 4,455) | 4,484) | 4,399) | 4,403) | 4,414) | 4,260) | 4,344) | 4,324) | 4,153) | 3,897) | 4,097) | 4,015) | 3,928) | 3,866) | 3,884) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | 16.23% | 16.04% | 16.10% | 17.23% | 17.38% | 18.24% | 19.13% | 22.70% | 23.34% | 23.55% | 23.59% | 23.80% | 23.12% | 22.80% | 22.65% | 22.69% | 22.93% | 23.27% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | 21.61% | 22.03% | 22.21% | 22.30% | 22.36% | 22.98% | 23.63% | 23.94% | 23.79% | 23.04% | — | — | — | — | — | — | — | — | ||||||
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
Operating profit margin = 100
× (Operating profitQ2 2023
+ Operating profitQ1 2023
+ Operating profitQ4 2022
+ Operating profitQ3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × (974 + 909 + 202 + 947)
÷ (4,822 + 4,770 + 4,629 + 4,455)
= 16.23%
2 Click competitor name to see calculations.
- Net Sales
- Net sales display a general upward trend from March 2019 through June 2023. Starting at approximately $3.9 billion in the first quarter of 2019, sales increased steadily, reaching around $4.8 billion in the most recent quarter available. There are fluctuations present, but the overall trajectory indicates growth over the analyzed period.
- Operating Profit
- Operating profit exhibits more volatility compared to net sales. The values fluctuate around the $900 million to $1 billion mark from 2019 through early 2021, peaking at over $1 billion in certain quarters of 2020 and 2021. Notably, there is a sharp and significant decline in operating profit in the fourth quarter of 2021, dropping to $365 million, which represents a substantial deviation from previous quarters. Following this, operating profit partially recovers and stabilizes closer to historical levels but remains somewhat lower and more variable through mid-2023.
- Operating Profit Margin
- The operating profit margin steadily declines over the course of the period. From a margin in the low 20s (around 23%) during 2019 and early 2020, the margin gradually decreases, falling below 20% starting late 2021. By mid-2023, the operating margin rests near 16%, indicating a noticeable reduction in operating profitability relative to net sales. The sharp drop in margin aligning with the operating profit fall in late 2021 is significant, reflecting potential cost pressures or other operational challenges.
- Overall Analysis
- The data suggests consistent revenue growth; however, operating profit and margins reveal challenges in sustaining profitability at previous levels. The pronounced dip in operating profit and margin in late 2021 signals an important inflection point, potentially due to extraordinary circumstances or increased expenses. While there is a recovery tendency post-dip, profitability ratios do not return to earlier peaks, implying altered cost structures or market conditions. The divergence between rising sales and diminishing margins indicates that revenue growth is not translating proportionally into operating gains, warranting further examination of cost management and operational efficiency.
Net Profit Margin
Colgate-Palmolive Co., net profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income attributable to Colgate-Palmolive Company | 502) | 372) | 5) | 618) | 603) | 559) | 148) | 634) | 703) | 681) | 647) | 698) | 635) | 715) | 643) | 578) | 586) | 560) | ||||||
| Net sales | 4,822) | 4,770) | 4,629) | 4,455) | 4,484) | 4,399) | 4,403) | 4,414) | 4,260) | 4,344) | 4,324) | 4,153) | 3,897) | 4,097) | 4,015) | 3,928) | 3,866) | 3,884) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | 8.02% | 8.71% | 9.93% | 10.87% | 10.98% | 11.70% | 12.43% | 15.37% | 15.98% | 15.92% | 16.36% | 16.65% | 16.13% | 15.86% | 15.08% | 15.04% | 14.77% | 15.08% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | 17.79% | 18.11% | 18.38% | 18.33% | 18.52% | 18.33% | 18.79% | 18.97% | 18.72% | 18.92% | — | — | — | — | — | — | — | — | ||||||
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 profit margin = 100
× (Net income attributable to Colgate-Palmolive CompanyQ2 2023
+ Net income attributable to Colgate-Palmolive CompanyQ1 2023
+ Net income attributable to Colgate-Palmolive CompanyQ4 2022
+ Net income attributable to Colgate-Palmolive CompanyQ3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × (502 + 372 + 5 + 618)
÷ (4,822 + 4,770 + 4,629 + 4,455)
= 8.02%
2 Click competitor name to see calculations.
- Net Income Analysis
- The net income exhibited a generally stable pattern from early 2019 through mid-2021, with values mostly ranging between approximately $560 million and $703 million per quarter. A notable anomaly occurred in the fourth quarter of 2021, where net income sharply declined to $148 million, signaling a significant drop compared to prior periods. Following this decline, net income partially recovered in subsequent quarters throughout 2022 but remained substantially below earlier levels until a striking peak observed in the first quarter of 2023 at $5,372 million, an outlier that deviates markedly from previous figures. After this spike, net income again reduced to around $500 million in the second quarter of 2023.
- Net Sales Trend
- Net sales demonstrated a consistent upward trend over the analyzed periods, gradually increasing from approximately $3.9 billion in early 2019 to about $4.8 billion by mid-2023. Although there were some fluctuations quarter to quarter, the overall progression points to steady growth in revenue generation, with no sharp declines or irregularities evident in the reported sales figures.
- Net Profit Margin Observations
- The net profit margin showed strength in 2019 and early 2020, maintaining levels around 15% to 16.7%. From mid-2021, a declining trend becomes apparent, with margins falling steadily from over 15% down to just above 8% by the middle of 2023. This reduction in profitability margin suggests increased cost pressures or decreased efficiency relative to sales, as the company generated less profit per dollar of revenue over time.
- Overall Insights
- The data depicts a company experiencing stable revenue growth accompanied by challenges in maintaining profitability margins. The significant dip in net income during late 2021 and the subsequent unusual spike in early 2023 merit further investigation, as these extreme values may be influenced by non-recurring events or accounting adjustments. The persistent decline in profit margin alongside rising sales suggests a potential imbalance between revenue growth and cost control, which could impact long-term financial health if unaddressed.
Return on Equity (ROE)
Colgate-Palmolive Co., ROE calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income attributable to Colgate-Palmolive Company | 502) | 372) | 5) | 618) | 603) | 559) | 148) | 634) | 703) | 681) | 647) | 698) | 635) | 715) | 643) | 578) | 586) | 560) | ||||||
| Total Colgate-Palmolive Company shareholders’ equity | (64) | (6) | 401) | 622) | 168) | 321) | 609) | 591) | 464) | 262) | 743) | 653) | 268) | (113) | 117) | (324) | (347) | (552) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | — | — | 445.14% | 309.97% | 1,157.14% | 636.76% | 355.67% | 450.93% | 588.15% | 1,015.65% | 362.72% | 412.10% | 959.33% | — | 2,023.08% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | 32.12% | 33.06% | 31.64% | 32.09% | 32.52% | 30.67% | 30.85% | 30.47% | 28.74% | 28.46% | — | — | — | — | — | — | — | — | ||||||
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
ROE = 100
× (Net income attributable to Colgate-Palmolive CompanyQ2 2023
+ Net income attributable to Colgate-Palmolive CompanyQ1 2023
+ Net income attributable to Colgate-Palmolive CompanyQ4 2022
+ Net income attributable to Colgate-Palmolive CompanyQ3 2022)
÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × (502 + 372 + 5 + 618)
÷ -64 = —
2 Click competitor name to see calculations.
- Net Income Attributable to Colgate-Palmolive Company
- The net income shows a fluctuating trend over the observed periods. Initially, from March 2019 to March 2020, there is a general increase from 560 million USD to 715 million USD, indicating a positive growth trajectory. However, the second quarter of 2020 sees a dip to 635 million USD, followed by recovery later in the year, stabilizing around the mid-600 million range. The data for 2021 depicts variability with a notable sharp decline to 148 million USD in the last quarter, which is an outlier compared to surrounding values. The following year shows some recovery, though net income remains below peak historical levels, and the most recent figures from 2023 depict a drastic increase followed again by a decline.
- Total Shareholders’ Equity
- Shareholders’ equity data is characterized by significant volatility and frequent negative values. Early figures are notably negative, with a low point around March 2019 (-552 million USD), followed by modest improvements over subsequent quarters reaching positive values by the end of 2020. The period after this remains inconsistent, with equity values oscillating between moderately positive and negative but never stabilizing at a strongly positive position. The data through 2022 and into 2023 continues to reflect this instability with alternating positive and negative equity values, including marginal negatives towards the most recent quarters.
- Return on Equity (ROE)
- Return on Equity exhibits extreme fluctuations, demonstrating periods of very high percentage values concentrated around 2020 and 2021. Some calculated ROE values exceed 1000%, which is atypical and likely a consequence of very low or near-zero equity bases, given the prior negative equity figures. The presence of such elevated ROE values alongside negative and low shareholder equity suggests the metric may be less meaningful during these periods, potentially distorted by the capital structure or accounting adjustments. Overall, ROE displays a pattern of instability and inconsistency, reflecting the irregular changes in net income and equity.
- Summary of Financial Trends
- The financial data indicates a company experiencing significant volatility in core metrics such as net income and shareholder equity. The net income has periods of growth but lacks sustained upward momentum, with sharp drops in certain quarters. Shareholders’ equity fluctuates widely with intermittent negative values, suggesting potential financial stress or accounting peculiarities. The extreme ROE values further emphasize this instability, implying that returns relative to equity have been inconsistent and sometimes artificially inflated due to equity fluctuations. This pattern may point to challenges in financial stability or operational performance over the timeframe analyzed.
Return on Assets (ROA)
Colgate-Palmolive Co., ROA 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 income attributable to Colgate-Palmolive Company | 502) | 372) | 5) | 618) | 603) | 559) | 148) | 634) | 703) | 681) | 647) | 698) | 635) | 715) | 643) | 578) | 586) | 560) | ||||||
| Total assets | 16,227) | 16,173) | 15,731) | 16,288) | 15,711) | 15,723) | 15,040) | 15,880) | 15,999) | 15,801) | 15,920) | 15,466) | 15,141) | 15,070) | 15,034) | 15,026) | 13,151) | 12,883) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | 9.23% | 9.88% | 11.35% | 11.84% | 12.37% | 13.00% | 14.40% | 16.78% | 17.06% | 16.84% | 16.93% | 17.40% | 16.98% | 16.74% | 15.74% | 15.51% | 17.30% | 18.05% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Procter & Gamble Co. | 12.13% | 12.53% | 12.58% | 12.14% | 11.95% | 11.82% | 11.99% | 12.16% | 11.53% | 11.44% | — | — | — | — | — | — | — | — | ||||||
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
ROA = 100
× (Net income attributable to Colgate-Palmolive CompanyQ2 2023
+ Net income attributable to Colgate-Palmolive CompanyQ1 2023
+ Net income attributable to Colgate-Palmolive CompanyQ4 2022
+ Net income attributable to Colgate-Palmolive CompanyQ3 2022)
÷ Total assets
= 100 × (502 + 372 + 5 + 618)
÷ 16,227 = 9.23%
2 Click competitor name to see calculations.
- Net Income Attributable to the Company
- The net income figures exhibit a fluctuating trend over the observed periods. Beginning with 560 million US dollars in the first quarter of 2019, the income reached a peak of 715 million in the first quarter of 2020. Thereafter, the values show volatility, with noticeable decreases in the final quarter of 2021 and the initial quarters of 2023. In particular, there is a prominent outlier in December 2021, where the net income drops significantly to 148 million, the lowest in the dataset. Overall, net income demonstrates variability but generally stays within the range of approximately 500 to 700 million US dollars, except for the December 2021 outlier and the sharp decline in early 2023.
- Total Assets
- Total assets display a gradual upward trend throughout the timeline. Starting at 12,883 million US dollars in March 2019, total assets increased steadily to around 16,000 million by the mid-2023 period. Minor fluctuations are observed, yet the overall pattern indicates consistent asset growth, reflecting possible strategic investments or accumulation of resources over the four-year span.
- Return on Assets (ROA)
- ROA shows a declining trajectory over the analyzed quarters. Initially, ROA is relatively high at 18.05% in the first quarter of 2019 and remains above 15% until around the end of 2020. Following this period, a gradual decrease is observable, with ROA falling below 14% in 2021, then steadily declining further to reach values near 9% by mid-2023. This downward trend suggests a diminishing efficiency in generating profit from the asset base, which may warrant further analysis to understand underlying causes, such as increased asset base without commensurate income growth or margin pressures.