Colgate-Palmolive Company (CL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,268,000 | 3,984,000 | 2,893,000 | 3,332,000 | 3,885,000 |
| Long-term debt | US$ in thousands | 7,289,000 | 8,219,000 | 8,741,000 | 7,194,000 | 7,334,000 |
| Total stockholders’ equity | US$ in thousands | 212,000 | 609,000 | 401,000 | 609,000 | 743,000 |
| Return on total capital | 56.90% | 45.13% | 31.65% | 42.70% | 48.10% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,268,000K ÷ ($7,289,000K + $212,000K)
= 56.90%
Colgate-Palmolive Company's return on total capital has shown fluctuations over the years, ranging from 31.65% in December 31, 2022, to a high of 56.90% in December 31, 2024. The company's return on total capital was strong in 2020 and 2024, with figures of 48.10% and 56.90%, respectively. This indicates that the company has been effectively utilizing its total capital to generate profits for its shareholders. The decreasing trend in 2022 followed by an increase in the subsequent years could suggest variations in the company's capital allocation strategies and overall financial performance. Overall, the return on total capital for Colgate-Palmolive Company reflects positive efficiency in capital utilization and profitability, with room for monitoring and potential optimization in the future.
Peer comparison
Dec 31, 2024