Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Colgate-Palmolive Co., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Colgate-Palmolive Co. debt to equity ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Colgate-Palmolive Co. debt to equity ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Colgate-Palmolive Co. debt to capital ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Colgate-Palmolive Co. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Colgate-Palmolive Co. debt to assets ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Colgate-Palmolive Co. debt to assets ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Colgate-Palmolive Co. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Colgate-Palmolive Co. interest coverage ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Colgate-Palmolive Co. fixed charge coverage ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Equity
Colgate-Palmolive Co., debt to equity 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) | ||||||
| Notes and loans payable | 11) | 39) | 258) | 260) | 12) | |
| Current portion of long-term debt | 14) | 12) | 9) | 254) | —) | |
| Long-term debt, excluding current portion | 8,741) | 7,194) | 7,334) | 7,333) | 6,354) | |
| Total debt | 8,766) | 7,245) | 7,601) | 7,847) | 6,366) | |
| Total Colgate-Palmolive Company shareholders’ equity | 401) | 609) | 743) | 117) | (102) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 21.86 | 11.90 | 10.23 | 67.07 | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Procter & Gamble Co. | 0.68 | 0.69 | 0.75 | 0.64 | — | |
| Debt to Equity, Industry | ||||||
| Consumer Staples | 1.08 | 1.07 | 1.24 | — | — | |
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
Debt to equity = Total debt ÷ Total Colgate-Palmolive Company shareholders’ equity
= 8,766 ÷ 401 = 21.86
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Colgate-Palmolive Co. debt to equity ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Colgate-Palmolive Co., debt to equity (including operating lease liability) 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) | ||||||
| Notes and loans payable | 11) | 39) | 258) | 260) | 12) | |
| Current portion of long-term debt | 14) | 12) | 9) | 254) | —) | |
| Long-term debt, excluding current portion | 8,741) | 7,194) | 7,334) | 7,333) | 6,354) | |
| Total debt | 8,766) | 7,245) | 7,601) | 7,847) | 6,366) | |
| Operating lease liabilities due in one year | 108) | 137) | 137) | 145) | —) | |
| Long-term operating lease liabilities | 397) | 451) | 476) | 491) | —) | |
| Total debt (including operating lease liability) | 9,271) | 7,833) | 8,214) | 8,483) | 6,366) | |
| Total Colgate-Palmolive Company shareholders’ equity | 401) | 609) | 743) | 117) | (102) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 23.12 | 12.86 | 11.06 | 72.50 | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Procter & Gamble Co. | 0.69 | 0.71 | 0.77 | 0.64 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 1.20 | 1.19 | 1.39 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Colgate-Palmolive Company shareholders’ equity
= 9,271 ÷ 401 = 23.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Colgate-Palmolive Co. debt to equity ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Colgate-Palmolive Co., debt to capital 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) | ||||||
| Notes and loans payable | 11) | 39) | 258) | 260) | 12) | |
| Current portion of long-term debt | 14) | 12) | 9) | 254) | —) | |
| Long-term debt, excluding current portion | 8,741) | 7,194) | 7,334) | 7,333) | 6,354) | |
| Total debt | 8,766) | 7,245) | 7,601) | 7,847) | 6,366) | |
| Total Colgate-Palmolive Company shareholders’ equity | 401) | 609) | 743) | 117) | (102) | |
| Total capital | 9,167) | 7,854) | 8,344) | 7,964) | 6,264) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.96 | 0.92 | 0.91 | 0.99 | 1.02 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Procter & Gamble Co. | 0.40 | 0.41 | 0.43 | 0.39 | — | |
| Debt to Capital, Industry | ||||||
| Consumer Staples | 0.52 | 0.52 | 0.55 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 8,766 ÷ 9,167 = 0.96
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Colgate-Palmolive Co. debt to capital ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Colgate-Palmolive Co., debt to capital (including operating lease liability) 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) | ||||||
| Notes and loans payable | 11) | 39) | 258) | 260) | 12) | |
| Current portion of long-term debt | 14) | 12) | 9) | 254) | —) | |
| Long-term debt, excluding current portion | 8,741) | 7,194) | 7,334) | 7,333) | 6,354) | |
| Total debt | 8,766) | 7,245) | 7,601) | 7,847) | 6,366) | |
| Operating lease liabilities due in one year | 108) | 137) | 137) | 145) | —) | |
| Long-term operating lease liabilities | 397) | 451) | 476) | 491) | —) | |
| Total debt (including operating lease liability) | 9,271) | 7,833) | 8,214) | 8,483) | 6,366) | |
| Total Colgate-Palmolive Company shareholders’ equity | 401) | 609) | 743) | 117) | (102) | |
| Total capital (including operating lease liability) | 9,672) | 8,442) | 8,957) | 8,600) | 6,264) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.96 | 0.93 | 0.92 | 0.99 | 1.02 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Procter & Gamble Co. | 0.41 | 0.41 | 0.43 | 0.39 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.54 | 0.54 | 0.58 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,271 ÷ 9,672 = 0.96
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Colgate-Palmolive Co. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Colgate-Palmolive Co., debt to assets 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) | ||||||
| Notes and loans payable | 11) | 39) | 258) | 260) | 12) | |
| Current portion of long-term debt | 14) | 12) | 9) | 254) | —) | |
| Long-term debt, excluding current portion | 8,741) | 7,194) | 7,334) | 7,333) | 6,354) | |
| Total debt | 8,766) | 7,245) | 7,601) | 7,847) | 6,366) | |
| Total assets | 15,731) | 15,040) | 15,920) | 15,034) | 12,161) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.56 | 0.48 | 0.48 | 0.52 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Procter & Gamble Co. | 0.27 | 0.27 | 0.29 | 0.26 | — | |
| Debt to Assets, Industry | ||||||
| Consumer Staples | 0.30 | 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
Debt to assets = Total debt ÷ Total assets
= 8,766 ÷ 15,731 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Colgate-Palmolive Co. debt to assets ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Colgate-Palmolive Co., debt to assets (including operating lease liability) 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) | ||||||
| Notes and loans payable | 11) | 39) | 258) | 260) | 12) | |
| Current portion of long-term debt | 14) | 12) | 9) | 254) | —) | |
| Long-term debt, excluding current portion | 8,741) | 7,194) | 7,334) | 7,333) | 6,354) | |
| Total debt | 8,766) | 7,245) | 7,601) | 7,847) | 6,366) | |
| Operating lease liabilities due in one year | 108) | 137) | 137) | 145) | —) | |
| Long-term operating lease liabilities | 397) | 451) | 476) | 491) | —) | |
| Total debt (including operating lease liability) | 9,271) | 7,833) | 8,214) | 8,483) | 6,366) | |
| Total assets | 15,731) | 15,040) | 15,920) | 15,034) | 12,161) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.59 | 0.52 | 0.52 | 0.56 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Procter & Gamble Co. | 0.28 | 0.28 | 0.30 | 0.26 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.33 | 0.33 | 0.37 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,271 ÷ 15,731 = 0.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Colgate-Palmolive Co. debt to assets ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Colgate-Palmolive Co., financial leverage 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) | ||||||
| Total assets | 15,731) | 15,040) | 15,920) | 15,034) | 12,161) | |
| Total Colgate-Palmolive Company shareholders’ equity | 401) | 609) | 743) | 117) | (102) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 39.23 | 24.70 | 21.43 | 128.50 | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Procter & Gamble Co. | 2.52 | 2.57 | 2.59 | 2.44 | — | |
| Financial Leverage, Industry | ||||||
| Consumer Staples | 3.59 | 3.59 | 3.76 | — | — | |
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
Financial leverage = Total assets ÷ Total Colgate-Palmolive Company shareholders’ equity
= 15,731 ÷ 401 = 39.23
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Colgate-Palmolive Co. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Colgate-Palmolive Co., interest coverage 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) | ||||||
| Net income attributable to Colgate-Palmolive Company | 1,785) | 2,166) | 2,695) | 2,367) | 2,400) | |
| Add: Net income attributable to noncontrolling interest | 182) | 172) | 165) | 160) | 158) | |
| Add: Income tax expense | 693) | 749) | 787) | 774) | 906) | |
| Add: Interest expense | 167) | 117) | 183) | 192) | 193) | |
| Earnings before interest and tax (EBIT) | 2,827) | 3,204) | 3,830) | 3,493) | 3,657) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 16.93 | 27.38 | 20.93 | 18.19 | 18.95 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Procter & Gamble Co. | 41.99 | 36.09 | 35.05 | 12.92 | — | |
| Interest Coverage, Industry | ||||||
| Consumer Staples | 15.69 | 11.46 | 11.62 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 2,827 ÷ 167 = 16.93
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Colgate-Palmolive Co. interest coverage ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Fixed Charge Coverage
Colgate-Palmolive Co., fixed charge coverage 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) | ||||||
| Net income attributable to Colgate-Palmolive Company | 1,785) | 2,166) | 2,695) | 2,367) | 2,400) | |
| Add: Net income attributable to noncontrolling interest | 182) | 172) | 165) | 160) | 158) | |
| Add: Income tax expense | 693) | 749) | 787) | 774) | 906) | |
| Add: Interest expense | 167) | 117) | 183) | 192) | 193) | |
| Earnings before interest and tax (EBIT) | 2,827) | 3,204) | 3,830) | 3,493) | 3,657) | |
| Add: Operating lease cost | 138) | 142) | 155) | 169) | 213) | |
| Earnings before fixed charges and tax | 2,965) | 3,346) | 3,985) | 3,662) | 3,870) | |
| Interest expense | 167) | 117) | 183) | 192) | 193) | |
| Operating lease cost | 138) | 142) | 155) | 169) | 213) | |
| Fixed charges | 305) | 259) | 338) | 361) | 406) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 9.72 | 12.92 | 11.79 | 10.14 | 9.53 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Procter & Gamble Co. | 16.98 | 15.83 | 14.54 | 5.85 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Staples | 9.06 | 7.46 | 7.19 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,965 ÷ 305 = 9.72
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Colgate-Palmolive Co. fixed charge coverage ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |