Colgate-Palmolive Company (CL)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	15,693,000	15,489,000	15,406,000	15,426,000
Property, plant and equipment	US$ in thousands	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	3,750,000	3,689,000	3,793,000	3,821,000
Fixed asset turnover		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	4.18	4.20	4.06	4.04

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,457,000K ÷ $4,582,000K
= 4.25

Colgate-Palmolive Co. has demonstrated a relatively stable fixed asset turnover ratio over the past eight quarters, ranging from 4.17 to 4.70. This indicates that the company is generating revenue efficiently from its fixed assets, with an average ratio of approximately 4.36 during this period. The higher the fixed asset turnover ratio, the more effectively the company is utilizing its fixed assets to generate sales.

Although there was some fluctuation in the ratio, it generally remained above 4, suggesting that Colgate-Palmolive Co. has been effective at managing and utilizing its fixed assets to drive revenue. However, it is important to assess this ratio in conjunction with other financial metrics to gain a more comprehensive understanding of the company's overall operational efficiency and profitability.