Colgate-Palmolive Company (CL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.50% | 58.21% | 57.04% | 59.55% | 60.82% |
| Operating profit margin | 21.23% | 20.48% | 16.10% | 19.13% | 23.59% |
| Pretax margin | 18.88% | 16.64% | 13.79% | 16.73% | 21.14% |
| Net profit margin | 14.37% | 11.82% | 9.93% | 12.43% | 16.36% |
Colgate-Palmolive Company's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin: The company's gross profit margin has been relatively stable, with a slight decline from 60.82% in 2020 to 57.04% in 2022, followed by a recovery to 60.50% in 2024. This indicates that the company has been able to maintain a high percentage of revenue after accounting for the cost of goods sold.
2. Operating Profit Margin: Colgate-Palmolive's operating profit margin experienced a significant decrease from 23.59% in 2020 to 16.10% in 2022 before rebounding to 21.23% in 2024. This suggests that the company's operating expenses may have been managed more efficiently in recent years.
3. Pretax Margin: The pretax margin also declined from 21.14% in 2020 to 13.79% in 2022, but then increased to 18.88% in 2024. This ratio indicates the company's ability to generate profits before accounting for taxes, showing improvement in recent years.
4. Net Profit Margin: Colgate-Palmolive's net profit margin followed a similar trend to the pretax margin, decreasing from 16.36% in 2020 to 9.93% in 2022 and then rising to 14.37% in 2024. This ratio reflects the company's ability to convert revenue into net income, showing signs of recovery in profitability levels.
Overall, despite some fluctuations, Colgate-Palmolive's profitability ratios have shown resilience and improvement in recent years, with the company successfully managing its costs and increasing profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 26.60% | 24.30% | 18.39% | 22.15% | 24.40% |
| Return on assets (ROA) | 18.00% | 14.03% | 11.35% | 14.40% | 16.93% |
| Return on total capital | 56.90% | 45.13% | 31.65% | 42.70% | 48.10% |
| Return on equity (ROE) | 1,362.74% | 377.67% | 445.14% | 355.67% | 362.72% |
Colgate-Palmolive Company's profitability ratios show a strong performance over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has been consistently high, starting at 24.40% in 2020 and remaining above 18% in subsequent years. This indicates the company's ability to generate operating income relative to its total assets, showcasing efficiency in operations.
2. Return on Assets (ROA):
- The ROA has also been impressive, starting at 16.93% in 2020 and reaching 18.00% by the end of 2024. This metric reflects the company's profitability in relation to its total assets, with an upward trend indicating improved asset utilization and profitability.
3. Return on Total Capital:
- The Return on Total Capital has shown a fluctuating pattern but with an overall upward trend, reaching 56.90% in 2024. This ratio highlights the company's ability to generate returns from both equity and debt capital, showcasing efficient capital management.
4. Return on Equity (ROE):
- The ROE has been exceptionally high, with a significant increase from 362.72% in 2020 to 1,362.74% in 2024. This indicates the company's ability to generate profits from shareholders' equity, reflecting strong financial performance and efficient use of equity capital.
Overall, Colgate-Palmolive Company's profitability ratios demonstrate consistent profitability, efficient asset utilization, strong capital management, and high returns for shareholders over the years.