Colgate-Palmolive Company (CL)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	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
Revenue (ttm)	US$ in thousands	20,101,000	20,106,000	19,988,000	19,752,000	19,457,000	19,136,000	18,676,000	18,338,000	17,967,000	17,741,000	17,700,000	17,476,000	17,421,000	17,342,000	17,081,000	16,718,000	16,471,000	16,162,000	15,937,000	15,906,000
Property, plant and equipment	US$ in thousands	4,422,000	4,421,000	4,392,000	4,497,000	4,582,000	4,409,000	4,431,000	4,363,000	4,307,000	4,123,000	3,765,000	3,752,000	3,730,000	3,633,000	3,665,000	3,609,000	3,716,000	3,506,000	3,483,000	3,487,000
Fixed asset turnover		4.55	4.55	4.55	4.39	4.25	4.34	4.21	4.20	4.17	4.30	4.70	4.66	4.67	4.77	4.66	4.63	4.43	4.61	4.58	4.56

December 31, 2024 calculation

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

The fixed asset turnover ratio for Colgate-Palmolive Company has shown a relatively stable trend over the provided period. The ratio has ranged from 4.17 to 4.77, indicating that, on average, the company generates between $4.17 and $4.77 in sales for every dollar invested in fixed assets.

It is important to note that a higher fixed asset turnover ratio generally indicates more efficient utilization of fixed assets to generate sales. In this case, the company's ratio has generally been above 4, suggesting that Colgate-Palmolive is efficiently using its fixed assets to generate revenue.

However, the slight fluctuations observed in the ratio over the period may indicate varying levels of efficiency in utilizing fixed assets to generate sales. It will be essential for stakeholders to monitor these trends and understand the underlying factors impacting the company's fixed asset turnover ratio to assess its operational efficiency and profitability in the long term.