Colgate-Palmolive Company (CL)
Debt-to-equity 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-equity ratio | 13.50 | 21.80 | 11.81 | 9.87 | 62.68 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,219,000K ÷ $609,000K
= 13.50
The debt-to-equity ratio for Colgate-Palmolive Co. has fluctuated over the past five years. In 2019, the ratio was significantly high at 67.07, indicating a higher reliance on debt to finance its operations compared to equity. However, in the following years, the company successfully reduced its reliance on debt, with the ratio decreasing to 10.23 in 2020, 11.90 in 2021, and 21.86 in 2022.
In 2023, the debt-to-equity ratio increased to 14.04, suggesting that the company might have taken on more debt relative to its equity compared to the previous year. Although the trend shows some volatility, overall, Colgate-Palmolive Co. has managed to maintain a relatively lower level of debt compared to equity in recent years, which can be viewed positively in terms of financial stability and risk management.
Peer comparison
Dec 31, 2023