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

Colgate-Palmolive Co. (NYSE:CL)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

Colgate-Palmolive Co., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Turnover Ratios
Inventory turnover 3.86 4.55 5.05 5.06 5.19
Receivables turnover 13.03 10.90 11.10 10.44 10.77
Payables turnover 4.63 5.15 5.17 5.09 5.40
Working capital turnover 111.30 34.39 12.55 14.71
Average No. Days
Average inventory processing period 95 80 72 72 70
Add: Average receivable collection period 28 33 33 35 34
Operating cycle 123 113 105 107 104
Less: Average payables payment period 79 71 71 72 68
Cash conversion cycle 44 42 34 35 36

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Colgate-Palmolive Co.’s inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Colgate-Palmolive Co.’s receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Colgate-Palmolive Co.’s payables turnover ratio decreased from 2018 to 2019 and from 2019 to 2020.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Colgate-Palmolive Co.’s number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Colgate-Palmolive Co.’s operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Colgate-Palmolive Co.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Inventory Turnover

Colgate-Palmolive Co., inventory turnover 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)
Cost of sales 6,454  6,368  6,313  6,174  6,072 
Inventories 1,673  1,400  1,250  1,221  1,171 
Short-term Activity Ratio
Inventory turnover1 3.86 4.55 5.05 5.06 5.19
Benchmarks
Inventory Turnover, Competitors2
Estée Lauder Cos. Inc. 1.72 1.69 1.76 1.65 1.73
Procter & Gamble Co. 6.41 6.93 7.23 7.04 6.98
Inventory Turnover, Sector
Household & Personal Products 4.90 5.29 5.71 5.62 5.76
Inventory Turnover, Industry
Consumer Staples 7.58 7.55 7.49 7.43 7.33

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
Inventory turnover = Cost of sales ÷ Inventories
= 6,454 ÷ 1,673 = 3.86

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Colgate-Palmolive Co.’s inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

Colgate-Palmolive Co., receivables turnover 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 sales 16,471  15,693  15,544  15,454  15,195 
Receivables, net of allowances 1,264  1,440  1,400  1,480  1,411 
Short-term Activity Ratio
Receivables turnover1 13.03 10.90 11.10 10.44 10.77
Benchmarks
Receivables Turnover, Competitors2
Estée Lauder Cos. Inc. 11.97 8.12 9.20 8.48 8.95
Procter & Gamble Co. 16.98 13.67 14.26 14.16 14.93
Receivables Turnover, Sector
Household & Personal Products 15.33 11.95 12.68 12.36 13.03
Receivables Turnover, Industry
Consumer Staples 32.43 29.79 31.15 29.51 29.86

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
Receivables turnover = Net sales ÷ Receivables, net of allowances
= 16,471 ÷ 1,264 = 13.03

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Colgate-Palmolive Co.’s receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Payables Turnover

Colgate-Palmolive Co., payables turnover 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)
Cost of sales 6,454  6,368  6,313  6,174  6,072 
Accounts payable 1,393  1,237  1,222  1,212  1,124 
Short-term Activity Ratio
Payables turnover1 4.63 5.15 5.17 5.09 5.40
Benchmarks
Payables Turnover, Competitors2
Estée Lauder Cos. Inc. 3.02 2.27 2.41 2.92 3.04
Procter & Gamble Co. 2.92 3.09 3.31 3.38 3.53
Payables Turnover, Sector
Household & Personal Products 3.09 3.18 3.41 3.52 3.69
Payables Turnover, Industry
Consumer Staples 6.80 6.89 6.98 7.37 7.93

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
Payables turnover = Cost of sales ÷ Accounts payable
= 6,454 ÷ 1,393 = 4.63

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Colgate-Palmolive Co.’s payables turnover ratio decreased from 2018 to 2019 and from 2019 to 2020.

Working Capital Turnover

Colgate-Palmolive Co., working capital turnover 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)
Current assets 4,338  4,179  3,793  4,639  4,338 
Less: Current liabilities 4,404  4,038  3,341  3,408  3,305 
Working capital (66) 141  452  1,231  1,033 
 
Net sales 16,471  15,693  15,544  15,454  15,195 
Short-term Activity Ratio
Working capital turnover1 111.30 34.39 12.55 14.71
Benchmarks
Working Capital Turnover, Competitors2
Estée Lauder Cos. Inc. 3.85 5.70 4.79 5.52 7.29
Procter & Gamble Co. 21.68
Working Capital Turnover, Sector
Household & Personal Products 16.42
Working Capital Turnover, Industry
Consumer Staples 184.71 97.91

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
Working capital turnover = Net sales ÷ Working capital
= 16,471 ÷ -66 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Colgate-Palmolive Co., average inventory processing period 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
Inventory turnover 3.86 4.55 5.05 5.06 5.19
Short-term Activity Ratio (no. days)
Average inventory processing period1 95 80 72 72 70
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Estée Lauder Cos. Inc. 212 216 208 222 211
Procter & Gamble Co. 57 53 50 52 52
Average Inventory Processing Period, Sector
Household & Personal Products 74 69 64 65 63
Average Inventory Processing Period, Industry
Consumer Staples 48 48 49 49 50

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.86 = 95

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Colgate-Palmolive Co.’s number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

Colgate-Palmolive Co., average receivable collection period 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
Receivables turnover 13.03 10.90 11.10 10.44 10.77
Short-term Activity Ratio (no. days)
Average receivable collection period1 28 33 33 35 34
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Estée Lauder Cos. Inc. 30 45 40 43 41
Procter & Gamble Co. 21 27 26 26 24
Average Receivable Collection Period, Sector
Household & Personal Products 24 31 29 30 28
Average Receivable Collection Period, Industry
Consumer Staples 11 12 12 12 12

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 13.03 = 28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Colgate-Palmolive Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 95 80 72 72 70
Average receivable collection period 28 33 33 35 34
Short-term Activity Ratio
Operating cycle1 123 113 105 107 104
Benchmarks
Operating Cycle, Competitors2
Estée Lauder Cos. Inc. 242 261 248 265 252
Procter & Gamble Co. 78 80 76 78 76
Operating Cycle, Sector
Household & Personal Products 98 100 93 95 91
Operating Cycle, Industry
Consumer Staples 59 60 61 61 62

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 cycle = Average inventory processing period + Average receivable collection period
= 95 + 28 = 123

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Colgate-Palmolive Co.’s operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Payables Payment Period

Colgate-Palmolive Co., average payables payment period 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
Payables turnover 4.63 5.15 5.17 5.09 5.40
Short-term Activity Ratio (no. days)
Average payables payment period1 79 71 71 72 68
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Estée Lauder Cos. Inc. 121 161 152 125 120
Procter & Gamble Co. 125 118 110 108 103
Average Payables Payment Period, Sector
Household & Personal Products 118 115 107 104 99
Average Payables Payment Period, Industry
Consumer Staples 54 53 52 50 46

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.63 = 79

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Colgate-Palmolive Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 95 80 72 72 70
Average receivable collection period 28 33 33 35 34
Average payables payment period 79 71 71 72 68
Short-term Activity Ratio
Cash conversion cycle1 44 42 34 35 36
Benchmarks
Cash Conversion Cycle, Competitors2
Estée Lauder Cos. Inc. 121 100 96 140 132
Procter & Gamble Co. -47 -38 -34 -30 -27
Cash Conversion Cycle, Sector
Household & Personal Products -20 -15 -14 -9 -8
Cash Conversion Cycle, Industry
Consumer Staples 5 7 9 11 16

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 95 + 2879 = 44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Colgate-Palmolive Co.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.