Colgate-Palmolive Company (CL)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,300,000	1,785,000	2,166,000	2,695,000	2,367,000
Total stockholders’ equity	US$ in thousands	609,000	401,000	609,000	743,000	117,000
ROE		377.67%	445.14%	355.67%	362.72%	2,023.08%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,300,000K ÷ $609,000K
= 377.67%

The return on equity (ROE) of Colgate-Palmolive Co. has exhibited significant fluctuations over the past five years. In 2019, the ROE was extraordinarily high at 2,023.08%, likely due to specific events or anomalies during that period. Subsequently, there was a substantial decrease in ROE in 2020 to 362.72%, which indicates a considerable drop in profitability and efficiency in generating returns for shareholders compared to the previous year.

However, the ROE rebounded in 2021 to 355.67%, showing some recovery in profitability levels. This positive trend continued in 2022, with ROE further increasing to 445.14%, indicating a better utilization of equity to generate profits. In 2023, there was another significant surge in ROE to 377.67%, demonstrating strong performance in generating returns for shareholders despite a slight decrease compared to the previous year.

Overall, despite some fluctuations, Colgate-Palmolive Co. has generally maintained a strong ROE performance over the past five years, with the exception of the outlier in 2019. It is essential for investors and stakeholders to monitor the company's profitability and efficiency in utilizing equity for sustainable long-term growth.