Colgate-Palmolive Company (CL)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,101,000 | 19,457,000 | 17,967,000 | 17,421,000 | 16,471,000 |
| Receivables | US$ in thousands | 1,521,000 | 1,586,000 | 1,504,000 | 1,297,000 | 1,264,000 |
| Receivables turnover | 13.22 | 12.27 | 11.95 | 13.43 | 13.03 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $20,101,000K ÷ $1,521,000K
= 13.22
The receivables turnover ratio of Colgate-Palmolive Company has shown consistency and effectiveness in managing its receivables over the years. From December 31, 2020, to December 31, 2024, the company's receivables turnover ratio has ranged from 11.95 to 13.43. This indicates that, on average, Colgate-Palmolive collects its accounts receivable approximately 12 to 13 times a year.
A higher receivables turnover ratio signifies that the company efficiently collects payments from its customers, translating into quicker conversion of credit sales into cash. This implies good liquidity and a healthy working capital management strategy. The consistent levels of the ratio over the years suggest that the company has maintained a stable and effective credit and collection policy.
The slight fluctuations in the ratio from year to year may be attributed to changes in sales volume, credit terms, customer payment behavior, or economic conditions. Overall, the trend indicates that Colgate-Palmolive has been successful in managing its receivables efficiently, reflecting positively on its financial health and operational performance.
Peer comparison
Dec 31, 2024