Colgate-Palmolive Company (CL)

Working capital 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 current assets	US$ in thousands	5,317,000	5,279,000	5,113,000	4,397,000	4,338,000
Total current liabilities	US$ in thousands	5,759,000	4,741,000	4,004,000	4,051,000	4,404,000
Working capital turnover		—	36.17	16.20	50.35	—

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,101,000K ÷ ($5,317,000K – $5,759,000K)
= —

The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate sales revenue.

In the case of Colgate-Palmolive Company, the working capital turnover ratio for December 31, 2021, was 50.35, indicating that the company generated $50.35 in sales for every $1 of working capital invested. This high ratio suggests that Colgate-Palmolive efficiently managed its working capital to generate revenue during that period.

However, for December 31, 2022, the working capital turnover ratio dropped to 16.20, signifying a decrease in efficiency in utilizing working capital to generate sales. This could indicate that the company may have experienced challenges in managing its working capital effectively during that period.

By December 31, 2023, the working capital turnover ratio improved to 36.17, showing a rebound in efficiency compared to the previous year. This suggests that Colgate-Palmolive may have implemented strategies to better utilize its working capital and generate revenue.

For December 31, 2020, and December 31, 2024, the specific working capital turnover ratios are not provided. This missing data limits a comprehensive analysis of Colgate-Palmolive's working capital efficiency during those respective periods.

Overall, fluctuations in the working capital turnover ratio indicate changes in how effectively Colgate-Palmolive is managing its working capital to support its sales activities. Additional information on the company's working capital management practices and financial performance would be necessary to gain a deeper understanding of these fluctuations.