Colgate-Palmolive Company (CL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.50 | 0.54 | 0.55 | 0.55 | 0.56 | 0.50 | 0.51 | 0.48 | 0.48 | 0.48 | 0.50 | 0.48 | 0.46 | 0.45 | 0.45 | 0.49 | 0.49 | 0.51 | 0.50 | 0.52 |
| 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 |
| Debt-to-equity ratio | 13.50 | — | — | — | 21.80 | 13.21 | 47.36 | 23.64 | 11.81 | 13.00 | 17.14 | 28.89 | 9.87 | 10.68 | 25.69 | — | 62.68 | — | — | — |
| Financial leverage ratio | 26.92 | — | — | — | 39.23 | 26.19 | 93.52 | 48.98 | 24.70 | 26.87 | 34.48 | 60.31 | 21.43 | 23.68 | 56.50 | — | 128.50 | — | — | — |
The solvency ratios of Colgate-Palmolive Co. provide valuable insights into the company's ability to meet its long-term financial obligations and the extent of its financial leverage.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Colgate-Palmolive Co.'s debt-to-assets ratio has been fluctuating around the range of 0.51 to 0.56 over the past eight quarters, suggesting that more than half of the company's assets are funded by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of the company's capital structure that is comprised of debt. Colgate-Palmolive Co.'s debt-to-capital ratio has shown variability, ranging from 0.93 to 1.01 in the past quarters, indicating a high reliance on debt as a source of capital.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the company's financial leverage and risk. In this case, the data is not available for Q3 and Q2 of 2023. However, in Q4 2022, the ratio was at a relatively high level of 21.86, implying that a significant portion of Colgate-Palmolive Co.'s assets are financed through debt compared to equity.
4. Financial leverage ratio: The financial leverage ratio provides insights into the company's ability to meet its financial obligations through various financial instruments. The data is not available for Q3 and Q2 of 2023. However, in Q4 2022, the ratio was at a comparatively high level of 39.23, indicating a substantial reliance on debt to support the company's operations and growth.
Overall, the solvency ratios of Colgate-Palmolive Co. suggest a consistent reliance on debt as a source of financing. Investors and stakeholders should closely monitor these ratios over time to assess the company's financial health and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 17.17 | 13.84 | 14.65 | 16.34 | 18.91 | 22.14 | 15.69 | 16.78 | 17.35 | 18.83 | 27.12 | 25.08 | 23.69 | 27.68 | 26.70 | 25.72 | 24.51 | 23.43 | 23.39 | 24.26 |
Colgate-Palmolive Co.'s interest coverage ratio has been relatively high and consistent over the past eight quarters, ranging from 17.34 to 29.97. This indicates the company's ability to comfortably meet its interest obligations using its operating income. The upward trend in interest coverage from Q4 2022 to Q1 2023 suggests an improving financial health, with the ratio peaking at 29.97 in Q4 2022. Despite a slight decrease in subsequent quarters, the interest coverage remains at healthy levels, demonstrating Colgate-Palmolive Co.'s capacity to service its debt obligations efficiently.