Colgate-Palmolive Company (CL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,889,000 | 2,300,000 | 1,785,000 | 2,166,000 | 2,695,000 |
| Total assets | US$ in thousands | 16,046,000 | 16,393,000 | 15,731,000 | 15,040,000 | 15,920,000 |
| ROA | 18.00% | 14.03% | 11.35% | 14.40% | 16.93% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,889,000K ÷ $16,046,000K
= 18.00%
Based on the provided data, Colgate-Palmolive Company's return on assets (ROA) has exhibited some fluctuations over the years. ROA is a key financial metric that indicates how effectively a company is utilizing its assets to generate profits.
In the last five years, Colgate-Palmolive's ROA has ranged from 11.35% to 18.00%, with a noticeable decline from 16.93% in 2020 to 11.35% in 2022. However, the company managed to improve its ROA in 2023 and 2024, reaching 14.03% and 18.00%, respectively.
A higher ROA signifies that the company is generating more profit from its assets, reflecting stronger operational efficiency and better financial performance. Conversely, a lower ROA may indicate inefficiencies in asset utilization or declining profitability.
It is essential for investors and stakeholders to monitor Colgate-Palmolive's ROA trends over time to assess the company's ability to generate returns on its assets effectively and sustainably. Fluctuations in ROA can provide insights into the company's operational performance, profitability, and overall financial health.
Peer comparison
Dec 31, 2024