Colgate-Palmolive Company (CL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,096,000 | 966,000 | 775,000 | 832,000 | 888,000 |
| Short-term investments | US$ in thousands | 160,000 | 179,000 | 175,000 | 34,000 | 37,000 |
| Receivables | US$ in thousands | 1,521,000 | 1,586,000 | 1,504,000 | 1,297,000 | 1,264,000 |
| Total current liabilities | US$ in thousands | 5,759,000 | 4,741,000 | 4,004,000 | 4,051,000 | 4,404,000 |
| Quick ratio | 0.48 | 0.58 | 0.61 | 0.53 | 0.50 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,096,000K
+ $160,000K
+ $1,521,000K)
÷ $5,759,000K
= 0.48
The quick ratio of Colgate-Palmolive Company has shown some fluctuations over the past five years. Starting at 0.50 on December 31, 2020, it increased to 0.61 by December 31, 2022, indicating a stronger ability to meet short-term obligations with its most liquid assets. However, in the subsequent years, the quick ratio slightly decreased to 0.58 by December 31, 2023, and then dropped further to 0.48 by December 31, 2024.
While the quick ratio measures the company's ability to cover immediate liabilities using its most liquid assets, a ratio below 1 may suggest potential liquidity challenges. The decreasing trend in the quick ratio from 2022 to 2024 could raise concerns about Colgate-Palmolive Company's short-term liquidity position. Further analysis of the company's current assets and liabilities mix may be necessary to understand the reasons behind this trend and evaluate the company's overall financial health.
Peer comparison
Dec 31, 2024