Colgate-Palmolive Company (CL)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.45 | 0.47 | 0.49 | 0.49 | 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 |
| Debt-to-capital ratio | 0.97 | 0.95 | 0.99 | 0.97 | 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 |
| Debt-to-equity ratio | 34.38 | 18.18 | 66.23 | 35.44 | 13.50 | — | — | — | 21.80 | 13.21 | 47.36 | 23.64 | 11.81 | 13.00 | 17.14 | 28.89 | 9.87 | 10.68 | 25.69 | — |
| Financial leverage ratio | 75.69 | 38.56 | 133.98 | 72.05 | 26.92 | — | — | — | 39.23 | 26.19 | 93.52 | 48.98 | 24.70 | 26.87 | 34.48 | 60.31 | 21.43 | 23.68 | 56.50 | — |
Colgate-Palmolive Company's solvency ratios have shown some fluctuations over the years. The Debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, has gradually increased from 0.49 in March 2020 to 0.45 in June 2024.
Similarly, the Debt-to-capital ratio, indicating the percentage of capital that comes from debt, has fluctuated but generally remained in the range of 0.91 to 1.01 over the same period, with a slight uptick towards the end of the period.
The Debt-to-equity ratio, which compares the company's total debt to its total equity, also exhibited variability, ranging from 9.87 to 66.23. It is worth noting that the ratio was not available for certain periods, indicating a potential change in the company's capital structure during those times.
Lastly, the Financial leverage ratio, reflecting the company's level of financial risk, has shown significant movement, with values ranging from 21.43 to 133.98. This suggests fluctuations in the company's ability to meet its financial obligations using debt financing.
Overall, the solvency ratios of Colgate-Palmolive indicate a mix of debt and equity financing and fluctuations in the level of financial risk over the years. Monitoring these ratios can provide insight into the company's financial health and risk profile.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 24.52 | 18.12 | 17.82 | 17.47 | 17.17 | 13.84 | 14.65 | 16.34 | 18.91 | 23.69 | 16.45 | 17.61 | 18.21 | 18.83 | 27.12 | 25.08 | 23.69 | 27.68 | 26.70 | 25.72 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations.
Analyzing Colgate-Palmolive Company's interest coverage ratio over the specified periods shows fluctuations in its ability to cover interest payments. The interest coverage ratio for Colgate-Palmolive ranged from a high of 27.68 in September 2020 to a low of 13.84 in September 2023.
The trend indicates some fluctuations in Colgate-Palmolive's ability to cover its interest expenses. It peaked in mid-2021, suggesting a strong capability to handle interest payments, but declined in subsequent periods, hitting a trough in September 2023. The ratio saw some improvement thereafter but remained lower than the levels seen in earlier periods.
Overall, the analysis suggests that Colgate-Palmolive had relatively strong interest coverage in the earlier part of the period but faced challenges in the mid to later years. The company may need to closely monitor its ability to service its debt obligations to ensure financial stability and sustainability.