Colgate-Palmolive Company (CL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 966,000 | 951,000 | 819,000 | 867,000 | 775,000 | 938,000 | 858,000 | 877,000 | 832,000 | 958,000 | 937,000 | 995,000 | 888,000 | 989,000 | 997,000 | 854,000 | 883,000 | 948,000 | 863,000 | 843,000 |
| Short-term investments | US$ in thousands | 179,000 | 247,000 | 267,000 | 7,764,000 | 175,000 | 208,000 | 120,000 | 58,000 | 34,000 | 100,000 | 70,000 | 62,000 | 37,000 | — | — | — | 23,000 | 109,000 | 66,000 | 37,000 |
| Receivables | US$ in thousands | 1,586,000 | 1,577,000 | 1,656,000 | 1,590,000 | 1,504,000 | 1,425,000 | 1,490,000 | 1,532,000 | 1,297,000 | 1,424,000 | 1,443,000 | 1,402,000 | 1,264,000 | 1,292,000 | 1,231,000 | 1,551,000 | 1,440,000 | 1,495,000 | 1,590,000 | 1,547,000 |
| 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 |
| Quick ratio | 0.58 | 0.60 | 0.59 | 2.30 | 0.61 | 0.57 | 0.56 | 0.54 | 0.53 | 0.58 | 0.58 | 0.54 | 0.50 | 0.51 | 0.49 | 0.54 | 0.58 | 0.60 | 0.67 | 0.63 |
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. over the past eight quarters has ranged from 0.67 to 0.76. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio slightly fluctuated within a relatively narrow range during the given period. Generally, a quick ratio above 1 indicates that a company holds sufficient liquid assets to cover its current liabilities. In this case, Colgate-Palmolive's quick ratio has remained below 1 in all quarters, indicating that it may have limited immediate liquidity to cover short-term obligations without relying on external sources.
The trend shows that the company's quick ratio has not shown significant improvement or deterioration over the observed quarters. It suggests that while Colgate-Palmolive does not have excessive short-term liquidity, it has maintained a consistent level of ability to cover its short-term obligations using its quick assets.
Overall, the quick ratio analysis demonstrates that Colgate-Palmolive Co. has been managing its short-term liquidity effectively, but may benefit from optimizing its current asset composition to enhance liquidity position.
Peer comparison
Dec 31, 2023