Colgate-Palmolive Company (CL)

Working capital 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
Total current assets	US$ in thousands	5,317,000	5,806,000	5,646,000	5,640,000	5,279,000	5,357,000	5,437,000	5,466,000	5,113,000	5,278,000	5,160,000	4,989,000	4,397,000	4,670,000	4,652,000	4,563,000	4,338,000	4,367,000	4,212,000	4,248,000
Total current liabilities	US$ in thousands	5,759,000	5,565,000	5,350,000	5,314,000	4,741,000	4,602,000	4,632,000	4,441,000	4,004,000	4,492,000	4,395,000	4,566,000	4,051,000	4,281,000	4,203,000	4,539,000	4,404,000	4,481,000	4,580,000	4,443,000
Working capital turnover		—	83.43	67.53	60.59	36.17	25.35	23.20	17.89	16.20	22.57	23.14	41.31	50.35	44.58	38.04	696.58	—	—	—	—

December 31, 2024 calculation

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

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher turnover ratio indicates better efficiency in managing working capital.

Analyzing the data provided for Colgate-Palmolive Company's working capital turnover over the past few quarters, we observe fluctuations in the ratio. For the period between March 31, 2021, and December 31, 2024, the working capital turnover ranged from a low of 16.20 to a high of 83.43.

Notably, the ratio increased significantly from March 31, 2024, to September 30, 2024, reaching its peak of 83.43, signaling a strong ability to convert working capital into sales during that period.

However, it is important to consider the reasons behind these fluctuations. A sudden increase in working capital turnover could be a positive sign of efficient management or indicate aggressive sales strategies. Conversely, a significant decrease may imply inefficiencies in working capital management or slowing sales.

Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Colgate-Palmolive Company's working capital efficiency and its implications for the company's overall financial health.