Colgate-Palmolive Company (CL)

Receivables 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
Receivables	US$ in thousands	1,521,000	1,712,000	1,825,000	1,813,000	1,586,000	1,577,000	1,656,000	1,590,000	1,504,000	1,425,000	1,490,000	1,532,000	1,297,000	1,424,000	1,443,000	1,402,000	1,264,000	1,292,000	1,231,000	1,551,000
Receivables turnover		13.22	11.74	10.95	10.89	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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $20,101,000K ÷ $1,521,000K
= 13.22

The receivables turnover ratio for Colgate-Palmolive Company has displayed fluctuations over the reported periods, ranging from a low of 10.26 times in March 2020 to a high of 13.43 times in December 2021. The ratio indicates how efficiently the company is able to collect outstanding receivables from customers during a specific period. Generally, a higher receivables turnover ratio is considered favorable as it suggests that the company is effectively managing its accounts receivable.

The trend in receivables turnover for Colgate-Palmolive shows improvement from the initial decrease in 2020, peaking in December 2021, before slightly declining in the subsequent quarters. The variations in the ratio could be influenced by changes in the company's credit policies, industry sales trends, or specific customer payment behavior.

Analyzing the data suggests that Colgate-Palmolive has been successful in efficiently converting its accounts receivable into cash during most reported periods. However, management may want to monitor the ratio closely to ensure that any downward trends do not indicate potential issues with customer collections or credit risk.