Colgate-Palmolive Company (CL)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	8,219,000	8,741,000	7,194,000	7,334,000	7,333,000
Total stockholders’ equity	US$ in thousands	609,000	401,000	609,000	743,000	117,000
Debt-to-capital ratio		0.93	0.96	0.92	0.91	0.98

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,219,000K ÷ ($8,219,000K + $609,000K)
= 0.93

The debt-to-capital ratio of Colgate-Palmolive Co. has shown fluctuations over the past five years. The ratio stood at 0.99 in 2019, indicating that the company's debt represented 99% of its total capital at the end of that year. Subsequently, there was a slight decrease in the ratio to 0.91 by the end of 2020, suggesting a lower proportion of debt relative to its total capital.

However, in the following years, the ratio increased to 0.92 in 2021, then further to 0.96 in 2022, and finally to 0.93 in 2023. These consecutive increases signal a rising reliance on debt financing within the capital structure. A higher debt-to-capital ratio may indicate increased financial risk due to higher levels of debt, potentially leading to higher interest payments and financial obligations.

It is important for investors and analysts to closely monitor the trend in the debt-to-capital ratio of Colgate-Palmolive Co. to assess the company's financial health, risk profile, and leverage position.