Colgate-Palmolive Company (CL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,940,000 | 8,131,000 | 7,719,000 | 7,046,000 | 6,454,000 |
| Payables | US$ in thousands | 1,805,000 | 1,698,000 | 1,551,000 | 1,479,000 | 1,393,000 |
| Payables turnover | 4.40 | 4.79 | 4.98 | 4.76 | 4.63 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,940,000K ÷ $1,805,000K
= 4.40
The payables turnover ratio for Colgate-Palmolive Company has shown a generally increasing trend over the five-year period from 2020 to 2024. Starting at 4.63 in 2020, the ratio increased to 4.76 in 2021, further to 4.98 in 2022, before experiencing a slight decrease to 4.79 in 2023, and finally settling at 4.40 in 2024.
A high payables turnover ratio indicates that the company is effectively managing its accounts payable, paying off its suppliers more frequently within a shorter period. This could reflect a strong liquidity position or efficient working capital management.
However, the slight decrease in the payables turnover ratio in 2024 compared to the previous year may suggest a potential change in the company's payment practices or supplier relationships. It would be important to monitor this trend in subsequent periods to assess its impact on the company's financial health and supplier relationships.
Peer comparison
Dec 31, 2024