Colgate-Palmolive Company (CL)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	15,693,000	15,489,000	15,406,000	15,426,000
Total current assets	US$ in thousands	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	4,179,000	4,349,000	4,255,000	4,133,000
Total current liabilities	US$ in thousands	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	4,038,000	4,231,000	3,782,000	3,865,000
Working capital turnover		36.17	25.35	23.20	17.89	16.20	22.57	23.14	41.31	50.35	44.58	38.04	696.58	—	—	—	—	111.30	131.26	32.57	57.56

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (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 fluctuated over the past eight quarters, ranging from a low of 16.20 in Q4 2022 to a high of 41.31 in Q1 2022. The ratio measures how efficiently the company is utilizing its working capital to generate sales.

In the most recent quarter, Q4 2023, the working capital turnover ratio was 36.17, representing a significant improvement compared to the previous quarters. This increase indicates that Colgate-Palmolive Co. has been able to generate more revenue relative to its working capital investment, suggesting improved efficiency in managing its current assets and liabilities.

Overall, the upward trend in the working capital turnover ratio indicates that Colgate-Palmolive Co. has been effectively utilizing its working capital to support its operations and drive revenue growth in recent quarters. This efficiency in working capital management is a positive signal for the company's financial health and operational performance.