Colgate-Palmolive Company (CL)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	8,219,000	8,690,000	8,954,000	8,870,000	8,741,000	8,219,000	7,957,000	7,588,000	7,194,000	7,682,000	7,951,000	7,570,000	7,334,000	6,971,000	6,884,000	7,336,000	7,333,000	7,646,000	6,640,000	6,655,000
Total stockholders’ equity	US$ in thousands	609,000	-9,000	-64,000	-6,000	401,000	622,000	168,000	321,000	609,000	591,000	464,000	262,000	743,000	653,000	268,000	-113,000	117,000	-324,000	-347,000	-552,000
Debt-to-capital ratio		0.93	1.00	1.01	1.00	0.96	0.93	0.98	0.96	0.92	0.93	0.94	0.97	0.91	0.91	0.96	1.02	0.98	1.04	1.06	1.09

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 for Colgate-Palmolive Co. has been relatively stable over the past eight quarters, ranging from 0.93 to 1.01. This ratio represents the proportion of the company's capital that is financed through debt, with higher values indicating a higher level of debt relative to total capital.

During Q2 and Q3 of 2023, the debt-to-capital ratio increased to 1.01 and 1.00, respectively, reflecting a slight increase in the company's reliance on debt funding. However, in Q4 2023, the ratio decreased to 0.93, suggesting a reduction in debt or an increase in equity capital.

Overall, a debt-to-capital ratio above 1.00 indicates that the company has more debt than equity in its capital structure. Investors and analysts typically monitor this ratio to assess the company's leverage and financial risk. It is essential for Colgate-Palmolive Co. to manage its debt levels effectively to ensure financial stability and maintain investor confidence.