Colgate-Palmolive Company (CL)
Total asset 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 |
| Total assets | US$ in thousands | 16,046,000 | 16,393,000 | 15,731,000 | 15,040,000 | 15,920,000 |
| Total asset turnover | 1.25 | 1.19 | 1.14 | 1.16 | 1.03 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $20,101,000K ÷ $16,046,000K
= 1.25
Colgate-Palmolive Company's total asset turnover has displayed a improving trend over the past five years. Starting at 1.03 in December 2020, it increased to 1.16 by December 2021, and has been relatively stable around 1.14 to 1.25 from 2022 to 2024. This indicates that the company generated $1.14 to $1.25 in sales for every dollar of assets held during these years.
The increase in total asset turnover from 2020 to 2024 suggests that Colgate-Palmolive has been more efficient in utilizing its assets to generate revenue. A higher total asset turnover ratio usually signifies better asset management and operational efficiency. This improvement could be the result of various factors such as improved inventory management, increased sales efficiency, or better utilization of fixed assets.
Overall, the upward trend in Colgate-Palmolive's total asset turnover is a positive indicator of the company's operational performance and efficiency in utilizing its assets to drive sales growth. It reflects improved productivity and effectiveness in converting investments in assets into revenue.
Peer comparison
Dec 31, 2024