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