Colgate-Palmolive Company (CL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 966,000 | 775,000 | 832,000 | 888,000 | 883,000 |
| Short-term investments | US$ in thousands | 179,000 | 175,000 | 34,000 | 37,000 | 23,000 |
| Receivables | US$ in thousands | 1,586,000 | 1,504,000 | 1,297,000 | 1,264,000 | 1,440,000 |
| Total current liabilities | US$ in thousands | 4,741,000 | 4,004,000 | 4,051,000 | 4,404,000 | 4,038,000 |
| Quick ratio | 0.58 | 0.61 | 0.53 | 0.50 | 0.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($966,000K
+ $179,000K
+ $1,586,000K)
÷ $4,741,000K
= 0.58
The quick ratio of Colgate-Palmolive Co. has exhibited some fluctuations over the past five years. The trend indicates a consistent ability to meet short-term obligations using its most liquid assets.
In 2023, the quick ratio stands at 0.71, which suggests that for every dollar of current liabilities, the company has $0.71 in quick assets available to cover those liabilities. This ratio has decreased slightly compared to the prior year, indicating a potential decrease in the company's ability to meet short-term obligations with readily available assets.
However, it is important to note that the quick ratio remains above 1 in all years, indicating that Colgate-Palmolive Co. generally has sufficient quick assets to cover current liabilities. The gradual fluctuations in the quick ratio over the years may be reflective of changes in the company's liquidity position and its ability to manage short-term financial obligations effectively.
Overall, while the current quick ratio may suggest a moderate decrease in liquidity compared to the previous year, the company's ability to cover short-term liabilities with quick assets remains relatively stable and within acceptable levels.
Peer comparison
Dec 31, 2023