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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Gross Profit Margin
- The gross profit margin remained relatively stable from March 2019 to June 2023, generally fluctuating within a narrow range between approximately 56.65% and 60.95%. The highest recorded values were observed around 2020 and early 2021, peaking near 60.95%. Since then, a gradual but steady decline is noted, reaching its lowest point at 56.65% in late 2022 before a slight recovery to 56.87% by mid-2023. This trend indicates some pressure on production or procurement costs over recent periods.
- Operating Profit Margin
- The operating profit margin demonstrated a downward trend from about 23.8% in late 2020 to roughly 16.23% by mid-2023. Early periods from 2018 through to approximately early 2021 showed relative stability around 22-24%. However, from 2021 onwards, the margin consistently decreased, showing a sharp decline particularly during 2022, where margins dropped below 20% and further declined to just above 16%. This decline suggests increasing operating expenses or reduced operational efficiency.
- Net Profit Margin
- The net profit margin has followed a decreasing trend similar to the operating profit margin. After maintaining levels near 15-16% between 2019 and early 2021, the margin started to decline from late 2021 onwards, falling from approximately 15.37% to about 8.02% by mid-2023. The consistent decrease indicates higher costs or other factors adversely affecting profitability at the net level over multiple periods.
- Return on Equity (ROE)
- The ROE figures display unusually high and volatile values in the available data points, with extreme spikes such as 2023.08% and other values exceeding 1000% in some quarters. This volatility and magnitude likely signal anomalies possibly related to accounting adjustments, equity fluctuations, or data irregularities rather than sustainable operational returns. Consequently, these numbers should be interpreted with caution.
- Return on Assets (ROA)
- The ROA metric shows a clear declining trend from a high of about 19.74% in early 2019 to approximately 9.23% by mid-2023. The decrease has been fairly steady, with significant drops occurring after 2021. This decline implies that asset utilization efficiency is deteriorating, possibly reflecting challenges in generating profit from company assets during recent periods.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 2,253) | 2,269) | 2,301) | 2,408) | |||||||
| 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) | 3,811) | 3,845) | 3,886) | 4,002) | |||||||
| 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% | 59.39% | — | — | — | |||||||
| 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% | 50.32% | 49.90% | 49.77% | 49.11% | 48.63% | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
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 financial data over the examined quarters reveals several important trends in the company's performance metrics, specifically regarding net sales, gross profit, and gross profit margin.
- Net Sales
- There is a generally upward trend in net sales from the beginning to the end of the period. Starting at approximately 4.0 billion US dollars in the first quarter of 2018, net sales exhibit some short-term fluctuations but show incremental growth overall. By the second quarter of 2023, net sales have risen to approximately 4.8 billion US dollars, reflecting sustained revenue expansion over the five-year horizon.
- Gross Profit
- Gross profit figures similarly indicate growth, albeit with some variability in individual quarters. Initial gross profit was around 2.4 billion US dollars in early 2018, with observable dips and peaks across quarters. Notably, gross profit reached higher levels near the end of 2020 and then fluctuated slightly through the subsequent periods. By mid-2023, gross profit peaks at approximately 2.8 billion US dollars, indicating improved cost management or pricing effectiveness supporting rising sales.
- Gross Profit Margin
- The gross profit margin shows a declining trend from its observed peak values to lower percentages in recent quarters. Data from 2018 indicates margins hovering around the 59% to 60% range, even reaching slightly above 60% in mid to late 2020. However, starting around 2021 and continuing to 2023, the margin percentage declines steadily, reaching a low near 56.65%, with a slight recovery to approximately 56.87% by mid-2023. This downward drift suggests some pressure on pricing or cost increases relative to sales growth, necessitating close monitoring for potential margin compression risks.
In summary, the company demonstrates solid revenue growth and gross profit increases over the analyzed quarters. However, the diminishing gross profit margin indicates that the cost structure or competitive dynamics may be impacting profitability. Continued attention to operational efficiencies and pricing strategies will be critical to sustaining financial health and improving margin performance.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 891) | 874) | 946) | 983) | |||||||
| 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) | 3,811) | 3,845) | 3,886) | 4,002) | |||||||
| 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% | 23.76% | — | — | — | |||||||
| 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% | 22.14% | 10.00% | 9.78% | 9.05% | 8.11% | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
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.
The quarterly financial data indicates several noteworthy trends in the operating profit, net sales, and operating profit margin over the observed periods.
- Operating Profit
- Operating profit shows a relatively stable pattern from 2018 through 2019, fluctuating generally between the mid-800s to just under 1,000 million US dollars each quarter. A moderate increase is observed in 2020 and early 2021, peaking slightly above 1,000 million in the third quarter of 2020. However, there is a significant decline in the first quarter of 2022, where operating profit sharply drops to 365 million US dollars. Subsequently, operating profit recovers in the following quarters through 2022 and into 2023, yet it does not return to prior peak levels, fluctuating in the range of approximately 900 to 975 million US dollars.
- Net Sales
- Net sales demonstrate a general upward trend over the entire period. Starting near 4,000 million US dollars in the first quarter of 2018, sales show small periodic fluctuations but mostly rise steadily year over year. By the second quarter of 2023, net sales have increased to over 4,800 million US dollars, reflecting consistent growth. The data do not show any sharp declines or volatility in net sales, suggesting stable demand or successful sales strategies during the period.
- Operating Profit Margin
- The operating profit margin, available from late 2018 onwards, exhibits a declining trend. Initially, margins range from approximately 22.6% to 23.8% between late 2018 and late 2020, indicating strong profitability relative to sales. However, starting in 2021, the margin begins to decrease steadily. By the first quarter of 2022, the margin significantly drops to around 19.13%, followed by further declines to approximately 16% by mid-2023. This decrease mirrors the large drop in operating profit noted in early 2022, which contrasts with the ongoing increase in sales, suggesting pressures on cost management or increased expenses affecting profitability.
In summary, while net sales have grown consistently over the analyzed quarters, operating profit and the associated margin have experienced volatility, with a marked reduction in profitability beginning in early 2022. Although operating profit partially recovers, profit margins continue to decline. This divergence between sales growth and profit margin contraction may warrant further investigation into expense management, pricing pressures, or other operational challenges impacting profitability.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 606) | 523) | 637) | 634) | |||||||
| 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) | 3,811) | 3,845) | 3,886) | 4,002) | |||||||
| 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% | 15.44% | — | — | — | |||||||
| 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% | 18.36% | 7.09% | 6.92% | 6.24% | 5.76% | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
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.
The analyzed data reveals several notable trends in the financial performance over the observed periods. Net income attributable to the company has shown fluctuations without a clear upward or downward trajectory, with values generally ranging between approximately 500 and 700 million US dollars. However, an exceptional drop is observed for the most recent reported quarters, with net income falling to unusually low figures around 5 to 500 million US dollars, which may indicate an anomaly or error requiring further investigation.
Net sales exhibit a gradual upward trend, increasing from around 3.8 to 4.8 billion US dollars from the first to the last quarter observed. This steady growth in revenue signals an expanding business activity or improved sales performance over the time frame.
Net profit margin percentages have demonstrated a declining pattern after peaking around the early 2020 period. Starting near the 15% to 16% range, margins began to decrease steadily, reaching single-digit percentages in the most recent quarters. This diminishing profitability margin suggests increasing costs or reduced operational efficiency relative to revenue, indicating potential challenges in maintaining profit levels amid rising sales.
- Net Income
- Fluctuates across quarters, mostly between 500 and 700 million US dollars, except for the last two quarters which show an anomalous sharp decrease.
- Net Sales
- Exhibit a consistent growth trend from approximately 3.8 billion to over 4.8 billion US dollars, suggesting steady revenue expansion.
- Net Profit Margin
- Peaked around early 2020 near 16%, then declined gradually to below 10% by the most recent data points, indicating decreasing profitability relative to sales.
Overall, while revenue growth reflects positively on sales capabilities, the concurrent decrease in profit margins coupled with net income volatility may warrant strategic review to identify causes impacting profitability and to explore measures for enhancing operational efficiency and cost control.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 606) | 523) | 637) | 634) | |||||||
| Total Colgate-Palmolive Company shareholders’ equity | (64) | (6) | 401) | 622) | 168) | 321) | 609) | 591) | 464) | 262) | 743) | 653) | 268) | (113) | 117) | (324) | (347) | (552) | (102) | (430) | (523) | (249) | |||||||
| 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% | 28.00% | 10.95% | 10.57% | 9.21% | 8.26% | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
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.
The analysis of the quarterly financial data reveals notable fluctuations and patterns in net income, shareholders’ equity, and return on equity (ROE) for the periods observed.
- Net Income Attributable to the Company
-
The net income ranged broadly, generally staying within the 500 to 700 million USD interval. Initial quarters showed values in the mid-600 millions, but there was a visible dip by the end of 2021 with a dramatic drop to 148 million USD in December 2021. Subsequently, figures recovered but remained volatile, particularly in 2023 with a substantial decline to 5 million and then 372 million USD by March and June, respectively. This suggests episodic profitability challenges or one-time events impacting earnings.
- Total Shareholders' Equity
-
The equity values demonstrate a persistent pattern of negative and low positive values with considerable swings. Negative equity was observed in many quarters before turning positive intermittently from late 2019 into early 2021. However, equity sharply declined again in some 2023 quarters, going below zero, particularly in March and June 2023. This pattern indicates instability in the capital base and potential financial stress or asset revaluations.
- Return on Equity (ROE)
-
ROE data is sporadic and notably extreme when available, showing exceptionally high percentages at times, such as 2023.08% and values exceeding 1000% in some quarters. Such figures are likely reflective of the impact of low or negative equity values causing ROE magnification. This distortion limits the meaningfulness of ROE as a profitability measure under these conditions, signaling that the equity base might be unreliable or temporarily skewed.
- Overall Observations
-
The combination of fluctuating net income, frequently negative or low equity, and extreme ROE suggests financial volatility. The erratic equity values imply challenges in maintaining a stable financial structure. The sharp drop in net income towards late 2021 followed by partial recovery and a subsequent fall in early 2023 point to operational or market difficulties affecting profitability. The ROE data’s irregularity reflects the instability in the base financial metrics and calls for caution when interpreting profitability ratios based on equity in this context.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 606) | 523) | 637) | 634) | |||||||
| 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) | 12,161) | 12,571) | 12,650) | 13,144) | |||||||
| 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% | 19.74% | — | — | — | |||||||
| 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% | 10.79% | 4.21% | 4.31% | 3.76% | 3.39% | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
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.
The financial data of the company reveals several key trends across quarterly periods from 2018 through mid-2023. There is observable variability in net income, total assets, and return on assets (ROA), highlighting fluctuations in profitability, asset base, and operational efficiency over time.
- Net Income Attributable to the Company
- The net income figures indicate periodic fluctuations without a clear linear trend. Starting at $634 million in Q1 2018, net income peaks notably at $715 million in Q1 2020, suggesting strong earnings performance early in the 2020 period. Subsequently, net income experiences some volatility with decreases and recoveries, reaching a series low of $5 million in Q1 2023 before rising slightly again. This steep drop in early 2023 is an outlier in the otherwise relatively stable range between approximately $500 to $700 million.
- Total Assets
- The asset base shows a general increasing trend from Q1 2018 ($13,144 million) through to Q2 2023 ($16,227 million). Despite minor quarter-to-quarter fluctuations, total assets expanded significantly over the five-year span, indicating possible growth initiatives or acquisitions increasing the company’s asset holdings. Some quarters reflect modest contractions (e.g., Q4 2021 to Q1 2022), but overall, the asset growth appears steady and positive.
- Return on Assets (ROA)
- ROA data is sparse in early 2018 but from Q1 2019 onward demonstrates a gradual declining trend. Initially high at 19.74% in Q1 2019, ROA decreases consistently over the subsequent quarters, reaching 9.23% by Q2 2023. This sustained reduction in asset profitability suggests either declining net income relative to assets, rising asset base not yet fully leveraged into earnings, or operational challenges affecting efficiency.
In summary, while total assets have generally increased, net income shows considerable variability, including a sharp decline in early 2023. Concurrently, ROA has decreased steadily, indicating reduced efficiency in generating profits from the asset base. These combined insights imply that despite asset growth, profitability and operational returns have been under pressure during recent periods.