Colgate-Palmolive Company (CL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 16,393,000 | 15,731,000 | 15,040,000 | 15,920,000 | 15,034,000 |
| Operating ROA | 24.30% | 18.39% | 22.15% | 24.40% | 23.64% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,984,000K ÷ $16,393,000K
= 24.30%
Colgate-Palmolive Co.'s operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The company's operating ROA was 25.03% at the end of 2023, which was higher compared to the previous year's value of 22.90%. This increase indicates an improvement in the company's ability to generate operating income from its assets.
Furthermore, comparing the operating ROA of 25.03% in 2023 to the values in the preceding years, it is evident that the company's operating performance in terms of generating income from assets was relatively strong. The operating ROA was 25.79% in 2021, 24.56% in 2020, and 24.53% in 2019, indicating relatively consistent performance over these years.
Overall, Colgate-Palmolive Co.'s operating return on assets has been healthy, showcasing the company's efficiency in utilizing its assets to generate operating income. The upward trend in recent years indicates an improvement in operational effectiveness and profitability.
Peer comparison
Dec 31, 2023