Colgate-Palmolive Company (CL)

Working capital 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 current assets	US$ in thousands	5,279,000	5,113,000	4,397,000	4,338,000	4,179,000
Total current liabilities	US$ in thousands	4,741,000	4,004,000	4,051,000	4,404,000	4,038,000
Working capital turnover		36.17	16.20	50.35	—	111.30

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,457,000K ÷ ($5,279,000K – $4,741,000K)
= 36.17

The working capital turnover ratio for Colgate-Palmolive Co. has shown fluctuations over the past five years. The ratio was 36.17 in 2023, 16.20 in 2022, and 50.35 in 2021. It appears that the company efficiently managed its working capital in 2021 compared to 2022 and 2023. However, there is missing data for 2020, and in 2019, the ratio was notably high at 111.30.

The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue. A higher ratio indicates that the company is generating more sales with less investment in working capital, which is typically a positive sign of operational efficiency.

The significant fluctuations in Colgate-Palmolive's working capital turnover ratio suggest variations in the company's working capital management strategies over the years. Further investigation into the reasons behind these fluctuations would be necessary to assess whether the company's working capital management is improving or deteriorating.