Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Colgate-Palmolive Co., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.28 | 1.09 | 0.99 | 1.03 | 1.14 | |
| Quick ratio | 0.57 | 0.53 | 0.49 | 0.58 | 0.64 | |
| Cash ratio | 0.19 | 0.21 | 0.20 | 0.22 | 0.22 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Colgate-Palmolive Co. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Colgate-Palmolive Co. quick ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Colgate-Palmolive Co. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Current Ratio
Colgate-Palmolive Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 5,113) | 4,397) | 4,338) | 4,179) | 3,793) | |
| Current liabilities | 4,004) | 4,051) | 4,404) | 4,038) | 3,341) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.28 | 1.09 | 0.99 | 1.03 | 1.14 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Procter & Gamble Co. | 0.65 | 0.70 | 0.85 | 0.75 | — | |
| Current Ratio, Industry | ||||||
| Consumer Staples | 0.87 | 0.93 | 0.92 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,113 ÷ 4,004 = 1.28
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Colgate-Palmolive Co. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Colgate-Palmolive Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 775) | 832) | 888) | 883) | 726) | |
| Receivables, net of allowances | 1,504) | 1,297) | 1,264) | 1,440) | 1,400) | |
| Total quick assets | 2,279) | 2,129) | 2,152) | 2,323) | 2,126) | |
| Current liabilities | 4,004) | 4,051) | 4,404) | 4,038) | 3,341) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.57 | 0.53 | 0.49 | 0.58 | 0.64 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Procter & Gamble Co. | 0.37 | 0.45 | 0.62 | 0.51 | — | |
| Quick Ratio, Industry | ||||||
| Consumer Staples | 0.38 | 0.43 | 0.47 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,279 ÷ 4,004 = 0.57
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Colgate-Palmolive Co. quick ratio improved from 2020 to 2021 and from 2021 to 2022. |
Cash Ratio
Colgate-Palmolive Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 775) | 832) | 888) | 883) | 726) | |
| Total cash assets | 775) | 832) | 888) | 883) | 726) | |
| Current liabilities | 4,004) | 4,051) | 4,404) | 4,038) | 3,341) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.19 | 0.21 | 0.20 | 0.22 | 0.22 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Procter & Gamble Co. | 0.22 | 0.31 | 0.49 | 0.34 | — | |
| Cash Ratio, Industry | ||||||
| Consumer Staples | 0.23 | 0.30 | 0.33 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 775 ÷ 4,004 = 0.19
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Colgate-Palmolive Co. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |