Colgate-Palmolive Company (CL)

Current ratio

		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
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
Current ratio		1.11	1.16	1.17	1.23	1.28	1.17	1.17	1.09	1.09	1.09	1.11	1.01	0.99	0.97	0.92	0.96	1.03	1.03	1.13	1.07

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,279,000K ÷ $4,741,000K
= 1.11

The current ratio of Colgate-Palmolive Co. has shown some fluctuations over the past several quarters. From Q1 2022 to Q1 2023, the current ratio has generally declined from 1.09 to 1.23, indicating a weaker ability to cover short-term liabilities with current assets. However, there was a slight improvement in Q3 2023 with a current ratio of 1.16.

The downward trend from Q1 2022 to Q1 2023 suggests that the company may be facing challenges in managing its short-term obligations relative to its current assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

It is important for Colgate-Palmolive Co. to carefully monitor its current ratio and take appropriate measures to ensure it remains at a healthy level to meet its short-term financial obligations effectively. Further analysis and comparison with industry benchmarks may provide additional insights into the company's liquidity position.