Colgate-Palmolive Company (CL)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,984,000 | 2,893,000 | 3,332,000 | 3,885,000 | 3,554,000 |
| Revenue | US$ in thousands | 19,457,000 | 17,967,000 | 17,421,000 | 16,471,000 | 15,693,000 |
| Operating profit margin | 20.48% | 16.10% | 19.13% | 23.59% | 22.65% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,984,000K ÷ $19,457,000K
= 20.48%
The operating profit margin of Colgate-Palmolive Co. has shown some fluctuations over the past five years. In 2023, the operating profit margin was 21.09%, slightly higher than the previous year's margin of 20.05%. The margin in 2021 was 22.27%, lower than the two preceding years where it was over 23% (23.74% in 2020 and 23.50% in 2019).
The downward trend from 2019 to 2021 indicates a decrease in the percentage of revenue that translates into operating profits. This could be attributed to various factors such as increased operating expenses, competitive pricing pressures, or changes in sales volumes.
However, the uptick in the operating profit margin in 2023 compared to 2022 suggests a potential improvement in Colgate-Palmolive Co.'s operational efficiency or cost management, which resulted in a higher proportion of revenue turning into operating profits.
Overall, while the operating profit margin has experienced fluctuations, it is essential for Colgate-Palmolive Co. to monitor and address the factors influencing these changes to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023