Colgate-Palmolive Company (CL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,457,000 | 17,967,000 | 17,421,000 | 16,471,000 | 15,693,000 |
| Property, plant and equipment | US$ in thousands | 4,582,000 | 4,307,000 | 3,730,000 | 3,716,000 | 3,750,000 |
| Fixed asset turnover | 4.25 | 4.17 | 4.67 | 4.43 | 4.18 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,457,000K ÷ $4,582,000K
= 4.25
Colgate-Palmolive Co.'s fixed asset turnover ratio has exhibited some fluctuations over the past five years. The company's fixed asset turnover was 4.25 in 2023, which indicates that the company generated $4.25 in net sales for every dollar invested in fixed assets during the year.
Compared to the prior year, the ratio increased from 4.17 in 2022 to 4.25 in 2023, suggesting a more efficient use of fixed assets to generate revenue. However, it is essential to note that the ratio was lower in 2022 compared to 2021 when it was 4.67.
Overall, Colgate-Palmolive Co. has generally maintained a relatively high fixed asset turnover ratio, indicating effective asset utilization in generating sales revenue. An increasing trend in the fixed asset turnover ratio over the years generally signifies improved operational efficiency and better management of assets. However, the fluctuations in the ratio over the years may warrant further investigation into the company's capital expenditure decisions and operational performance.
Peer comparison
Dec 31, 2023