Colgate-Palmolive Company (CL)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	7,289,000	8,219,000	8,741,000	7,194,000	7,334,000
Total assets	US$ in thousands	16,046,000	16,393,000	15,731,000	15,040,000	15,920,000
Debt-to-assets ratio		0.45	0.50	0.56	0.48	0.46

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,289,000K ÷ $16,046,000K
= 0.45

The debt-to-assets ratio of Colgate-Palmolive Company has shown a fluctuating trend over the years. As of December 31, 2020, the ratio stood at 0.46, indicating that 46% of the company's assets were financed by debt. This ratio increased to 0.48 by December 31, 2021, and continued to rise to 0.56 by December 31, 2022. This suggests an increasing reliance on debt to finance its assets during this period.

However, by December 31, 2023, the debt-to-assets ratio decreased to 0.50, indicating a slight improvement in the company's debt management. Subsequently, by December 31, 2024, the ratio dropped further to 0.45, suggesting a lower proportion of debt used to finance its assets compared to the previous year.

Overall, the analysis of Colgate-Palmolive's debt-to-assets ratio indicates some variability in its debt management practices over the years, with a noticeable increase in debt reliance in the past, but a more recent trend towards reducing this reliance. It is important to monitor this ratio to assess the company's financial leverage and risk profile accurately.