Colgate-Palmolive Company (CL)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.20	4.24	3.95	3.77	3.72	3.62	3.67	3.72	4.16	4.12	3.94	3.90	3.86	4.04	4.18	4.92	4.55	4.61	4.76	4.94
Receivables turnover	12.27	12.13	11.28	11.53	11.95	12.45	11.88	11.41	13.43	12.18	11.84	11.92	13.03	12.51	12.95	10.26	10.90	10.36	9.69	9.97
Payables turnover	4.79	5.52	5.22	4.94	4.98	4.87	4.91	4.53	4.76	5.47	5.27	5.00	4.63	5.20	5.36	5.27	5.15	5.32	5.20	5.20
Working capital turnover	36.17	25.35	23.20	17.89	16.20	22.57	23.14	41.31	50.35	44.58	38.04	696.58	—	—	—	—	111.30	131.26	32.57	57.56

Colgate-Palmolive Co.'s activity ratios show the efficiency with which the company manages its resources. The inventory turnover ratio has remained relatively stable over the past eight quarters, ranging between 3.72 and 4.24. This indicates that Colgate-Palmolive is managing its inventory effectively, with a higher turnover ratio suggesting that the company is selling its products quickly.

The receivables turnover ratio has also been consistent, with values between 11.28 and 12.45. This suggests that the company efficiently collects its outstanding receivables, converting them into cash relatively quickly. A higher turnover ratio indicates that Colgate-Palmolive is effective in managing its accounts receivable.

In terms of payables turnover, Colgate-Palmolive's performance has fluctuated slightly, ranging from 4.53 to 5.52. A higher turnover ratio in payables suggests that the company is paying its suppliers more frequently, potentially indicating strong relationships with suppliers or advantageous credit terms.

The working capital turnover ratio has shown significant variability, with values ranging from 16.20 to 41.31. This ratio measures how efficiently Colgate-Palmolive utilizes its working capital to generate revenue. A higher turnover ratio indicates more effective utilization of working capital.

Overall, the activity ratios of Colgate-Palmolive Co. demonstrate a general trend of efficient management of inventory, receivables, payables, and working capital over the past eight quarters.

Average number of days

		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
Days of inventory on hand (DOH)	days	86.82	86.10	92.39	96.87	98.07	100.78	99.35	98.00	87.65	88.56	92.54	93.70	94.61	90.36	87.28	74.16	80.24	79.12	76.73	73.86
Days of sales outstanding (DSO)	days	29.75	30.08	32.36	31.65	30.55	29.32	30.73	32.00	27.17	29.97	30.84	30.61	28.01	29.18	28.19	35.59	33.49	35.23	37.67	36.60
Number of days of payables	days	76.22	66.08	69.96	73.87	73.34	74.92	74.41	80.58	76.62	66.71	69.24	73.01	78.78	70.15	68.10	69.32	70.90	68.56	70.17	70.21

Colgate-Palmolive Co.'s activity ratios can be analyzed using the data provided:

1. Days of Inventory on Hand (DOH): This ratio measures how many days it takes for the company to sell its inventory. A lower DOH is generally more favorable as it indicates faster moving inventory. Colgate-Palmolive's DOH ranged from 86.10 days to 98.07 days over the past eight quarters, with a decreasing trend. This suggests that the company has been able to manage its inventory more efficiently over time.

2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for the company to collect payment from its customers. A lower DSO is preferable as it indicates quicker cash conversion from sales. Colgate-Palmolive's DSO ranged from 29.32 days to 32.36 days over the same period, with some fluctuation but relatively stable overall.

3. Number of Days of Payables: This ratio indicates the average number of days it takes for the company to pay its suppliers. A longer payment period is favorable for cash flow management. Colgate-Palmolive's number of days of payables ranged from 66.08 days to 80.58 days, showing some variability but generally within a reasonable range.

Overall, the trend in Colgate-Palmolive's activity ratios suggests improved efficiency in managing inventory and maintaining stable collection and payment practices over the past eight quarters. This indicates effective working capital management and operational performance.

Long-term

	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
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
Total asset turnover	1.19	1.19	1.15	1.13	1.14	1.09	1.13	1.11	1.16	1.09	1.07	1.06	1.03	1.05	1.05	1.06	1.04	1.03	1.17	1.20

The fixed asset turnover ratio for Colgate-Palmolive Co. has been relatively stable over the past eight quarters, ranging from 4.17 to 4.70. This indicates that the company generates between $4.17 and $4.70 in sales for every dollar invested in fixed assets. A higher fixed asset turnover ratio suggests better utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown a slight increasing trend from 1.09 to 1.19 over the same period. This implies that Colgate-Palmolive Co. has been more efficient in utilizing all its assets to generate sales, with an improvement in generating revenue for every dollar invested in total assets.

Overall, the company's long-term activity ratios suggest efficient management and utilization of both fixed and total assets to generate revenue over the analyzed period.