Colgate-Palmolive Company (CL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 212,000 | 609,000 | 401,000 | 609,000 | 743,000 |
| ROE | 1,362.74% | 377.67% | 445.14% | 355.67% | 362.72% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,889,000K ÷ $212,000K
= 1,362.74%
Colgate-Palmolive Company's return on equity (ROE) has exhibited significant fluctuations over the years, based on the provided data. As of December 31, 2020, the ROE stood at an impressive 362.72%, indicating that the company generated substantial profits relative to its shareholder equity.
Subsequently, the ROE slightly decreased to 355.67% by December 31, 2021. This minor decline suggests a potential decrease in profitability compared to the previous year but still indicates a strong performance in utilizing shareholder funds to generate earnings.
By December 31, 2022, the ROE surged to 445.14%, reaching a new high within the dataset. This substantial increase implies a remarkable improvement in the company's efficiency in generating profits from shareholders' equity.
In the following years, the ROE slightly decreased to 377.67% by December 31, 2023, before sharply rising to an exceptionally high 1,362.74% by December 31, 2024. This unprecedented surge may be attributed to various factors such as increased net income or a significant reduction in average shareholder equity.
Overall, the varying ROE percentages reflect fluctuations in Colgate-Palmolive Company's profitability and efficiency in utilizing shareholder funds to generate earnings. Investors and stakeholders should further investigate the underlying reasons for these changes to assess the company's financial performance accurately.
Peer comparison
Dec 31, 2024