Colgate-Palmolive Company (CL)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,457,000 | 17,967,000 | 17,421,000 | 16,471,000 | 15,693,000 |
| Total assets | US$ in thousands | 16,393,000 | 15,731,000 | 15,040,000 | 15,920,000 | 15,034,000 |
| Total asset turnover | 1.19 | 1.14 | 1.16 | 1.03 | 1.04 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $19,457,000K ÷ $16,393,000K
= 1.19
The total asset turnover ratio for Colgate-Palmolive Co. has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in generating sales from its total assets.
In 2023, the total asset turnover ratio reached 1.19, a slight increase compared to the previous year's ratio of 1.14. This suggests that Colgate-Palmolive Co. generated $1.19 in sales for every dollar of total assets in 2023.
The gradual rise in the total asset turnover ratio demonstrates that the company has been utilizing its total assets more effectively to generate revenue. This could be attributed to improved operational efficiency, better inventory management, or strategic investments that have yielded positive returns.
Overall, an increasing total asset turnover ratio is indicative of improved efficiency and productivity in utilizing the company's assets to drive sales growth.
Peer comparison
Dec 31, 2023