Colgate-Palmolive Company (CL)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	4,268,000	3,984,000	2,893,000	3,332,000	3,885,000
Revenue	US$ in thousands	20,101,000	19,457,000	17,967,000	17,421,000	16,471,000
Operating profit margin		21.23%	20.48%	16.10%	19.13%	23.59%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $4,268,000K ÷ $20,101,000K
= 21.23%

Colgate-Palmolive Company's operating profit margin has shown variability over the past five years. In 2020, the operating profit margin stood at 23.59%, indicating that the company retained approximately 23.59% of each dollar in revenue as operating profit. However, there was a drop in the operating profit margin in 2021 to 19.13%, which suggests a decline in operational efficiency or an increase in operating expenses relative to revenue during that period.

The downward trend continued into 2022, with the operating profit margin further decreasing to 16.10%. This could be a concerning sign as it indicates that the company may be facing challenges in generating profits from its core operations. However, there was an improvement in 2023, with the operating profit margin rebounding to 20.48%. This improvement may have resulted from cost-saving measures or revenue enhancement strategies implemented by the company.

In the latest period of 2024, Colgate-Palmolive Company's operating profit margin increased to 21.23%. This uptick suggests that the company may have successfully enhanced its operational efficiency or effectively managed its operating expenses compared to the previous year.

Overall, the fluctuations in Colgate-Palmolive Company's operating profit margin demonstrate the company's ability to adapt to changing market conditions and its efforts to optimize its profitability. Investors and stakeholders may continue to monitor these trends to assess the company's financial performance and sustainability in the long term.