Colgate-Palmolive Company (CL)
Debt-to-equity 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-equity ratio | 34.38 | 13.50 | 21.80 | 11.81 | 9.87 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,289,000K ÷ $212,000K
= 34.38
The debt-to-equity ratio of Colgate-Palmolive Company has shown a fluctuating trend over the past five years. From 2020 to 2021, the ratio increased from 9.87 to 11.81, indicating a rise in the company's debt relative to its equity during that period. Subsequently, in 2022, there was a significant spike in the ratio to 21.80, suggesting a substantial increase in debt compared to equity.
However, the ratio decreased in 2023 to 13.50, indicating a reduction in the company's debt relative to equity compared to the previous year. In 2024, the ratio rose sharply to 34.38, signifying a considerable increase in debt compared to equity, reaching its highest level in the five-year period.
Overall, the trend in the debt-to-equity ratio of Colgate-Palmolive Company reflects fluctuations in the company's capital structure and financial leverage over the years, with notable changes in the balance between debt and equity financing. Further analysis and evaluation of the company's financial strategy and risk management practices may be necessary to understand the implications of these ratio movements.
Peer comparison
Dec 31, 2024