Colgate-Palmolive Company (CL)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	20,101,000	19,457,000	17,967,000	17,421,000	16,471,000
Property, plant and equipment	US$ in thousands	4,422,000	4,582,000	4,307,000	3,730,000	3,716,000
Fixed asset turnover		4.55	4.25	4.17	4.67	4.43

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $20,101,000K ÷ $4,422,000K
= 4.55

Colgate-Palmolive Company's fixed asset turnover ratio has shown varying trends over the years based on the provided data.

- In 2020, the fixed asset turnover ratio was 4.43, indicating that for every dollar invested in fixed assets, the company generated $4.43 in sales.
- This ratio increased to 4.67 in 2021, suggesting that the company became more efficient in generating revenue from its fixed assets during that year.
- However, in 2022, the fixed asset turnover ratio decreased to 4.17, which could imply that the company may have experienced challenges in utilizing its fixed assets efficiently to generate sales.
- The ratio showed a slight improvement in 2023 to 4.25, but it remained below the 2021 level.
- By 2024, the fixed asset turnover ratio increased to 4.55, indicating that the company had improved its efficiency in generating revenue from its fixed assets compared to the previous year.

Overall, the fluctuations in Colgate-Palmolive Company's fixed asset turnover ratio reflect changes in the company's ability to utilize its fixed assets effectively to generate sales. Further analysis of the underlying factors contributing to these fluctuations would provide more insight into the company's operational efficiency and asset utilization strategies.