Colgate-Palmolive Co. (NYSE:CL)

Debt to Equity

The debt to equity ratio displayed significant variation over the observed period. Starting without data for 2018, it peaked at 67.07 in 2019 before dropping markedly to 10.23 in 2020. It then showed a slight increase to 11.9 in 2021 and a more substantial rise to 21.86 in 2022, indicating fluctuating leverage relative to shareholder equity.

Debt to Equity Including Operating Lease Liability

When considering operating lease liabilities, the trend mirrors the standard debt to equity ratio closely. It reached 72.5 in 2019, decreased sharply to around 11 by 2020, and then experienced gradual increases in 2021 and 2022, ending at 23.12. This suggests operating leases have a consistent but modest impact on total leverage ratios.

Debt to Capital

The debt to capital ratio remained relatively stable, starting at 1.02 in 2018 and showing a downward trend to about 0.91-0.92 between 2020-2021, before settling slightly higher at 0.96 in 2022. This indicates that the proportion of debt in the company’s capital structure has been fairly constant, with minor fluctuations.

Debt to Capital Including Operating Lease Liability

This ratio followed a nearly identical pattern to debt to capital without leases, varying slightly higher but remaining within a narrow range, from 1.02 in 2018 to 0.96 in 2022. The data suggests operating leases add marginally to the overall debt load but do not significantly alter capital structure metrics.

Debt to Assets

The debt to assets ratio was stable at 0.52 in 2018 and 2019, slightly declining to 0.48 during 2020 and 2021, before rising to 0.56 in 2022. This indicates a moderate increase in asset financing through debt in the most recent year after a period of stability and small decline.

Debt to Assets Including Operating Lease Liability

Including operating leases, this ratio showed slightly higher values than the base debt to assets ratio, increasing from 0.52 in 2018 to 0.59 in 2022. The inclusion of operating leases consistently adds to the debt base relative to assets, reflecting lease liabilities as a relevant component of asset financing.

Financial Leverage

The financial leverage ratio showed dramatic changes, with a very high value of 128.5 in 2019, followed by a sharp decline to 21.43 in 2020. Subsequent years showed gradual increases to 24.7 in 2021 and 39.23 in 2022. This indicates considerable volatility in leverage intensity, which could be influenced by changes in asset levels or equity.

Interest Coverage

Interest coverage remained robust above 18x through 2018-2019, improving to 20.93 in 2020 and peaking at 27.38 in 2021, reflecting strong earnings relative to interest expenses. However, it declined to 16.93 in 2022, signaling reduced buffer in meeting interest obligations, which could be a result of increased debt or lower earnings.

Fixed Charge Coverage

Fixed charge coverage exhibited a steady upward trend from 9.53 in 2018 to 12.92 in 2021, indicating improved capacity to cover fixed financial charges. Nonetheless, this ratio fell back to 9.72 in 2022, suggesting a tightening in the company’s ability to meet fixed charges after several years of improvement.

Total Debt

The total debt exhibited an overall upward trend during the period analyzed. Starting at $6,366 million in 2018, it increased to $7,847 million in 2019, followed by a slight decrease to $7,601 million in 2020 and further to $7,245 million in 2021. However, in 2022, total debt rose again significantly to $8,766 million, reaching the highest level within the five-year timeframe.

Total Shareholders’ Equity

The company's shareholders' equity started with a negative value of -$102 million in 2018, indicating a deficit. In 2019, it shifted to a positive territory at $117 million and continued growing to $743 million in 2020. Thereafter, equity values decreased to $609 million in 2021 and further declined to $401 million in 2022, showing some volatility and reduction after the initial improvement.

Debt to Equity Ratio

The debt to equity ratio was not reported for 2018, but for subsequent years it displayed considerable fluctuations. It was extremely high at 67.07 in 2019, reflecting very high leverage likely caused by the low equity base that year. The ratio significantly improved in 2020 to 10.23 and slightly increased to 11.9 in 2021. By 2022, the ratio nearly doubled to 21.86, indicating a rise in leverage again, presumably due to the decline in shareholders’ equity combined with the increase in total debt.

The financial data for the period from the end of 2018 through the end of 2022 reveals several noteworthy trends related to debt levels, equity, and leverage.

Total Debt (including operating lease liability)

The total debt shows an overall upward trend. It increased from 6,366 million USD in 2018 to 8,483 million USD in 2019, followed by a slight decline to 8,214 million USD in 2020 and further to 7,833 million USD in 2021. However, in 2022, there was a significant increase to 9,271 million USD, marking the highest level in the five-year period. This indicates a generally growing leverage exposure with some fluctuations.

Total Shareholders' Equity

Shareholders' equity exhibited considerable volatility. Starting from a negative value of -102 million USD in 2018, it rose sharply to positive territory at 117 million USD in 2019 and further to 743 million USD in 2020. Subsequently, equity declined to 609 million USD in 2021 and further to 401 million USD in 2022. This fluctuation suggests instability in retained earnings or equity adjustments, which could point to changes in company valuation, dividend policies, or accounting treatments during the period.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio reveals a dramatic change in the company's leverage profile. This ratio was not available for 2018, but in 2019 it was extremely high at 72.5, reflecting very high debt levels relative to equity. This ratio then dropped significantly to 11.06 in 2020 and slightly increased to 12.86 in 2021. In 2022, the ratio rose again sharply to 23.12. The fluctuations, especially the initial very high ratio and subsequent declines followed by a rise, indicate periods of financial restructuring and varying balance between debt and equity financing.

Overall, the company has experienced increasing total debt levels over the five-year period, with the most notable debt rise occurring in 2022. Shareholders’ equity has fluctuated substantially, including a move from negative to positive values, followed by a decline. The debt to equity ratio’s volatility reflects these shifts, indicating periods where debt significantly outpaced equity and times when the equity base strengthened relative to debt. These patterns suggest active management of capital structure, though the rising leverage ratio in the most recent year warrants attention given potential impacts on financial risk.

The financial data reveals notable trends in the company's debt and capital structure over the five-year period from 2018 to 2022. Total debt exhibits a fluctuating pattern with an initial increase from 6,366 million US dollars in 2018 to 7,847 million in 2019, followed by a slight decrease to 7,601 million in 2020 and further reduction to 7,245 million in 2021. However, in 2022, total debt rises significantly to 8,766 million, marking the highest level within the observed timeframe.

Total capital mirrors a similar trajectory, starting at 6,264 million US dollars in 2018 and rising steadily to 7,964 million in 2019. It continues to increase to 8,344 million in 2020, then experiences a slight drop to 7,854 million in 2021, before substantially climbing to 9,167 million in 2022. These fluctuations suggest active management of capital resources, possibly reflecting strategic financing and investment activities.

The debt to capital ratio indicates changes in the company's leverage position relative to its capital structure. Beginning at 1.02 in 2018, the ratio declines to 0.99 in 2019 and further decreases to 0.91 in 2020, indicating a reduction in leverage during these years. The ratio remains relatively stable at 0.92 in 2021 but then increases again to 0.96 in 2022, suggesting a higher reliance on debt financing relative to capital toward the end of the period.

Overall, the data demonstrates a period of debt reduction and capital accumulation from 2018 through 2021, followed by an uptick in both total debt and capital in 2022. The leverage ratio movement supports this observation, showing a conservative leverage approach until 2021 and a moderate increase in debt dependency in the most recent year analyzed.

The financial data illustrates trends related to the company’s debt levels and capital structure over a five-year period ending in 2022.

Total Debt (including operating lease liability)

This metric shows an overall increasing trend. Beginning at $6,366 million in 2018, total debt increased notably to $8,483 million in 2019. It then experienced a slight decline in 2020 and 2021, reaching $8,214 million and $7,833 million respectively, before rising again to $9,271 million in 2022, the highest value in the period analyzed.

Total Capital (including operating lease liability)

Total capital also demonstrates a general upward trajectory. Starting at $6,264 million in 2018, it increased significantly to $8,600 million in 2019 and continued to rise to $8,957 million in 2020. A slight decrease to $8,442 million occurred in 2021, followed by an increase to $9,672 million in 2022, marking the peak in the examined timeframe.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio reveals a moderate decline from above parity at 1.02 in 2018 to a low of 0.92 in 2020. This suggests a reduction in debt relative to the total capital during this interval. However, the ratio moderately increased back to 0.96 by 2022, indicating a slight shift toward higher leverage, though still below the initial 2018 level. The ratio generally remains close to one, implying that debt consistently constitutes a substantial proportion of the company’s capital structure.

In summary, both total debt and total capital have increased over the five-year period, with some fluctuations observed during the middle years. The company appears to have managed its leverage prudently, reducing the debt proportion relative to capital until 2020 but increasing it slightly thereafter while maintaining overall stability near parity. The data suggest a capital structure that relies heavily on debt financing, but with some balance maintained between debt and other capital components.

The financial data reveals several key trends in the company's leverage and asset management over the five-year period from 2018 to 2022.

Total Debt

Total debt exhibits fluctuations within the reported timeframe. Starting from approximately 6.37 billion US dollars in 2018, total debt increased significantly to 7.85 billion in 2019. It saw a moderate decline over the next two years, falling to 7.60 billion in 2020 and further to 7.24 billion in 2021. However, in 2022, total debt rose sharply again, reaching approximately 8.77 billion US dollars, the highest level in the period analyzed.

Total Assets

Total assets showed a general upward trajectory with some variation towards the end of the period. From 12.16 billion US dollars in 2018, assets grew to a peak of 15.92 billion in 2020. There was a slight decrease to 15.04 billion in 2021, followed by a modest recovery to 15.73 billion in 2022. Overall, total assets have increased significantly over the five years, indicating growth in the company’s asset base.

Debt to Assets Ratio

The debt to assets ratio provides insight into the company's leverage relative to its asset base. This ratio remained constant at 0.52 from 2018 to 2019, then decreased to 0.48 in 2020 and maintained this level through 2021, suggesting improved asset coverage relative to debt during these years. In 2022, however, the ratio increased to 0.56, indicating a higher proportion of debt compared to assets. This increase correlates with the rise in total debt and the relatively smaller increase in total assets during the same year.

In summary, the company has experienced growth in its total assets along with periodic fluctuations in its total debt. The reduction in the debt-to-assets ratio from 2019 to 2021 implies an initial strengthening of the balance sheet through either asset growth or debt management. The increase in this ratio in 2022 suggests a shift towards higher leverage, which may warrant further investigation regarding the causes and potential impact on financial stability.

The analysis of the financial data demonstrates several notable trends over the five-year period from 2018 to 2022.

Total Debt (including operating lease liability)

The total debt shows a general upward trend, increasing from $6,366 million in 2018 to $9,271 million in 2022. The debt rose significantly from 2018 to 2019 and then experienced a slight decline in 2020 and 2021. However, in 2022, the debt again increased to its highest level in this period.

Total Assets

Total assets expanded steadily from $12,161 million in 2018 to peak at $15,920 million in 2020. Afterwards, assets contracted somewhat in 2021 to $15,040 million, followed by a modest increase in 2022 to $15,731 million. Despite this fluctuation, the overall trend in total assets is an increase over the five years.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio reflects the relationship between total debt and total assets and has shown some variability. Starting at 0.52 in 2018, the ratio peaked at 0.56 in 2019, indicating increased leverage. The ratio then returned to 0.52 in both 2020 and 2021, suggesting relative stabilization in capital structure. In 2022, the ratio increased notably to 0.59, highlighting a higher proportion of debt relative to assets compared to previous years.

Overall, the company exhibited a pattern of increasing debt levels along with an expansion in asset base, although the latter fluctuated slightly after 2020. The rise in the debt to assets ratio in 2019 and especially in 2022 suggests periods of heightened leverage, which may reflect strategic financing decisions or other external factors impacting the capital structure. Despite variations, the company's asset size consistently remained above $12 billion, indicating sustained operational scale.

The financial data reveals several notable trends over the five-year period from 2018 to 2022. Total assets increased steadily from 12,161 million US dollars in 2018 to 15,731 million US dollars in 2022, indicating overall growth in the company's asset base despite a slight dip in 2021.

Shareholders' equity shows a significant improvement from a negative 102 million US dollars in 2018 to positive territory starting in 2019, with values increasing to 743 million in 2020. However, there is a noticeable downward trend after this peak, with equity decreasing to 609 million in 2021 and further to 401 million in 2022. This suggests some erosion of shareholders' equity in the latter years, which may warrant attention.

The financial leverage ratio, available from 2019 onwards, exhibits a highly volatile pattern. It starts at an exceptionally high 128.5 in 2019, drops significantly to 21.43 in 2020, slightly increases to 24.7 in 2021, and rises again to 39.23 in 2022. The initial extreme leverage ratio suggests a period of high debt relative to equity, likely linked to the negative or low shareholders' equity. The reduction in leverage in 2020 corresponds with the increase in equity, but the subsequent rise through 2022 indicates a growing reliance on debt financing or a reduction in equity, which could imply increased financial risk.

Total Assets

Overall growth with a peak in 2020, minor decline in 2021, and recovery in 2022.

Shareholders’ Equity

Transition from negative to positive values with a peak in 2020 followed by a steady decline through 2022.

Financial Leverage

Extremely high and volatile starting value, significant drop in 2020, then an upward trend through 2022 indicating fluctuating financial risk levels.

The analysis of the annual financial data reveals several key trends in operational performance and financial costs over the five-year period ending in 2022.

Earnings before interest and tax (EBIT)

EBIT exhibited fluctuations with an initial decline from 3657 million USD in 2018 to 3493 million USD in 2019. This was followed by an increase to a peak of 3830 million USD in 2020. However, thereafter there was a decline over the next two years, dropping significantly to 3204 million USD in 2021 and further down to 2827 million USD in 2022. The data indicates a downward trend in EBIT in the most recent years, suggesting potential challenges in operational profitability or increased costs.

Interest Expense

Interest expense remained relatively stable around the 190 million USD mark initially, showing a slight decrease from 193 million USD in 2018 to 183 million USD in 2020. In 2021, there was a notable reduction to 117 million USD, indicating a potential reduction in debt levels or refinancing at more favorable rates. However, in 2022 the interest expense increased again to 167 million USD, pointing towards possible increased borrowing or higher interest rates.

Interest Coverage Ratio

The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, generally remained strong throughout the period. It was 18.95 in 2018 and experienced minor fluctuations, reaching a high of 27.38 in 2021 suggesting substantial earnings relative to interest costs that year. Nevertheless, it declined sharply in 2022 to 16.93, the lowest in the observed period, which could indicate a reduced buffer to cover interest expenses owing to declining EBIT and rising interest costs.

Overall, the data shows that while the company maintained a robust capacity to cover its interest obligations for most of the timeframe, recent years have seen a downturn in EBIT accompanied by increased interest expense, which collectively impacted the interest coverage ratio negatively. This pattern warrants attention to operational efficiency and debt management to mitigate financial risks going forward.

The analysis of the presented financial data reveals several noteworthy trends over the five-year period from 2018 to 2022.

Earnings before fixed charges and tax

This metric shows a fluctuating pattern. Initially, earnings experienced a slight decline from 3,870 million USD in 2018 to 3,662 million USD in 2019. However, in 2020, earnings increased to 3,985 million USD, the highest point in the period. Subsequently, there was a noticeable decline in earnings in 2021 and 2022, falling to 3,346 million USD and further to 2,965 million USD respectively. Overall, this indicates a downward trend in earnings over the last two years, despite the temporary increase in 2020.

Fixed charges

Fixed charges decreased from 406 million USD in 2018 to 361 million USD in 2019 and further to 338 million USD in 2020. In 2021, fixed charges fell significantly to 259 million USD, marking the lowest point in the five-year period. However, in 2022 there was a slight increase to 305 million USD. This suggests a general reduction in fixed charges over most of the timeframe, with a minor rebound in the final year.

Fixed charge coverage ratio

This ratio, which measures the ability to cover fixed charges with earnings before fixed charges and tax, improved steadily from 9.53 in 2018 to a peak of 12.92 in 2021. This improvement reflects enhanced capacity to meet fixed financial obligations during this period. However, in 2022, the ratio declined significantly to 9.72, close to the 2018 level, indicating a reduced capacity to cover fixed charges compared to the previous two years.

In summary, earnings before fixed charges and taxes showed volatility, with a peak in 2020 followed by a pronounced decline in 2021 and 2022. Fixed charges generally trended downward, with a slight increase in the final year. The fixed charge coverage ratio improved consistently up to 2021, suggesting enhanced financial strength during that time, but it deteriorated in 2022, signaling a potential weakening in the company’s capacity to service its fixed charges.