Colgate-Palmolive Company (CL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,984,000 | 2,893,000 | 3,332,000 | 3,885,000 | 3,554,000 |
| Long-term debt | US$ in thousands | 8,219,000 | 8,741,000 | 7,194,000 | 7,334,000 | 7,333,000 |
| Total stockholders’ equity | US$ in thousands | 609,000 | 401,000 | 609,000 | 743,000 | 117,000 |
| Return on total capital | 45.13% | 31.65% | 42.70% | 48.10% | 47.70% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,984,000K ÷ ($8,219,000K + $609,000K)
= 45.13%
Colgate-Palmolive Co.'s return on total capital has shown a varying trend over the past five years. The company's return on total capital was highest in 2021 at 49.54% and lowest in 2022 at 39.43%. In 2023, the return on total capital increased to 44.99%. These figures indicate that the company has been effective in generating returns from its total capital investment.
Overall, Colgate-Palmolive Co. has consistently maintained a relatively high return on total capital, with the ratios ranging from 39.43% to 49.54% over the five-year period. This demonstrates the company's ability to efficiently utilize its capital to generate profits for its shareholders. However, it is important to closely monitor future trends in return on total capital to assess the company's ongoing financial performance and capital efficiency.
Peer comparison
Dec 31, 2023