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.


Peer comparison

Dec 31, 2024


See also:

Colgate-Palmolive Company Debt to Assets