Colgate-Palmolive Company (CL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,267,000 | 4,276,000 | 4,240,000 | 4,122,000 | 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 |
| Long-term debt | US$ in thousands | 7,289,000 | 7,909,000 | 8,146,000 | 8,151,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 212,000 | 435,000 | 123,000 | 230,000 | 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 |
| Return on total capital | 56.89% | 51.25% | 51.28% | 49.18% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,267,000K ÷ ($7,289,000K + $212,000K)
= 56.89%
The return on total capital for Colgate-Palmolive Company has exhibited fluctuating trends over the periods provided. From the data, we observe that the return on total capital was relatively high in the first half of 2020, ranging between 50.21% and 51.52%. However, there was a slight decline by the end of 2020, with a figure of 48.10%.
Subsequently, the return on total capital continued to vary in 2021 and early 2022, averaging around 47-50%. However, there was a noticeable decline in the return on total capital in mid-2022, with the figure dropping to 37.86% by June 30, 2022. The trend of decreasing returns continued, reaching a low of 31.65% by December 31, 2022.
There was a slight recovery in early 2023, with the return on total capital increasing to 33.19% by March 31, 2023, and further improving to 45.13% by December 31, 2023. Subsequently, there was a significant upturn, with the return on total capital peaking at 56.89% by December 31, 2024.
Overall, the return on total capital for Colgate-Palmolive Company experienced fluctuations over the periods analyzed, with periods of high returns followed by declines and subsequent recoveries. It is important for investors and stakeholders to closely monitor these trends to assess the company's efficiency in generating returns from its total capital base.
Peer comparison
Dec 31, 2024