Colgate-Palmolive Company (CL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 212,000 | 609,000 | 401,000 | 609,000 | 743,000 |
| Debt-to-capital ratio | 0.97 | 0.93 | 0.96 | 0.92 | 0.91 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,289,000K ÷ ($7,289,000K + $212,000K)
= 0.97
The debt-to-capital ratio of Colgate-Palmolive Company has displayed a consistent upward trend over the past five years, increasing from 0.91 in December 31, 2020 to 0.97 in December 31, 2024. This indicates that the company has been relying more on debt to finance its operations and investments relative to its total capital structure. Although the ratio fluctuated slightly between 2021 and 2023, it maintained an overall upward trajectory.
An increasing debt-to-capital ratio suggests that Colgate-Palmolive Company may be taking on more debt to fund its growth, which could potentially lead to higher financial leverage and associated risks. Investors and stakeholders should closely monitor this trend to assess the company's ability to manage its debt obligations and its overall financial health.
Peer comparison
Dec 31, 2024