Colgate-Palmolive Company (CL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.11 | 1.28 | 1.09 | 0.99 | 1.03 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,279,000K ÷ $4,741,000K
= 1.11
The current ratio measures Colgate-Palmolive Co.'s ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger ability to meet short-term liabilities.
Over the past five years, Colgate-Palmolive Co.'s current ratio has fluctuated. In 2023, the current ratio decreased to 1.11 from 1.28 in 2022, indicating a slight weakening in its short-term liquidity position. However, compared to 2021 and 2020 when the current ratio was 1.09 and 0.99 respectively, the current ratio has improved, suggesting better liquidity management.
The current ratio of 1.03 in 2019 was similar to the recent year's ratio, but the improvements since then indicate Colgate-Palmolive Co. has enhanced its ability to meet short-term obligations. However, it is essential to consider other factors alongside the current ratio for a comprehensive analysis of the company's overall liquidity position.
Peer comparison
Dec 31, 2023