Colgate-Palmolive Company (CL)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,984,000	3,114,000	3,032,000	2,942,000	2,893,000	3,056,000	3,076,000	3,188,000	3,332,000	3,936,000	3,987,000	3,937,000	3,885,000	3,847,000	3,685,000	3,627,000	3,554,000	3,514,000	3,532,000	3,590,000
Long-term debt	US$ in thousands	8,219,000	8,690,000	8,954,000	8,870,000	8,741,000	8,219,000	7,957,000	7,588,000	7,194,000	7,682,000	7,951,000	7,570,000	7,334,000	6,971,000	6,884,000	7,336,000	7,333,000	7,646,000	6,640,000	6,655,000
Total stockholders’ equity	US$ in thousands	609,000	-9,000	-64,000	-6,000	401,000	622,000	168,000	321,000	609,000	591,000	464,000	262,000	743,000	653,000	268,000	-113,000	117,000	-324,000	-347,000	-552,000
Return on total capital		45.13%	35.87%	34.11%	33.19%	31.65%	34.57%	37.86%	40.31%	42.70%	47.58%	47.38%	50.27%	48.10%	50.46%	51.52%	50.21%	47.70%	47.99%	56.13%	58.82%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 relatively stable performance over the past eight quarters. The company's return on total capital ranged from 39.43% to 47.81% during this period. The highest return was observed in Q1 2022, with a value of 47.81%, while the lowest return was in Q4 2022, at 39.43%.

Overall, the trend indicates that Colgate-Palmolive Co. has been effectively utilizing its capital to generate profits, with returns consistently above 40% in most quarters. This suggests that the company is efficiently deploying its resources to generate value for its shareholders. The relatively consistent performance of the return on total capital over the past two years demonstrates the company's ability to maintain profitability and optimize its capital structure.