Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Colgate-Palmolive Co., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Colgate-Palmolive Co. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Colgate-Palmolive Co. operating profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Colgate-Palmolive Co. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Colgate-Palmolive Co. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Colgate-Palmolive Co. ROA deteriorated from 2020 to 2021 and from 2021 to 2022. |
Gross Profit Margin
Colgate-Palmolive Co., gross profit margin 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) | ||||||
| Gross profit | 10,248) | 10,375) | 10,017) | 9,325) | 9,231) | |
| Net sales | 17,967) | 17,421) | 16,471) | 15,693) | 15,544) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 57.04% | 59.55% | 60.82% | 59.42% | 59.39% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Procter & Gamble Co. | 47.43% | 51.25% | 50.32% | 48.63% | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 10,248 ÷ 17,967 = 57.04%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Colgate-Palmolive Co. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Colgate-Palmolive Co., operating profit margin 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) | ||||||
| Operating profit | 2,893) | 3,332) | 3,885) | 3,554) | 3,694) | |
| Net sales | 17,967) | 17,421) | 16,471) | 15,693) | 15,544) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 16.10% | 19.13% | 23.59% | 22.65% | 23.76% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Procter & Gamble Co. | 22.21% | 23.63% | 22.14% | 8.11% | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 9.22% | 9.14% | 8.89% | 8.07% | — | |
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
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 2,893 ÷ 17,967 = 16.10%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Colgate-Palmolive Co. operating profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Colgate-Palmolive Co., net profit margin 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) | |
| Net sales | 17,967) | 17,421) | 16,471) | 15,693) | 15,544) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 9.93% | 12.43% | 16.36% | 15.08% | 15.44% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Procter & Gamble Co. | 18.38% | 18.79% | 18.36% | 5.76% | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 6.41% | 6.06% | 6.32% | 4.09% | — | |
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
Net profit margin = 100 × Net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 1,785 ÷ 17,967 = 9.93%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Colgate-Palmolive Co. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Return on Equity (ROE)
Colgate-Palmolive Co., ROE 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) | |
| Total Colgate-Palmolive Company shareholders’ equity | 401) | 609) | 743) | 117) | (102) | |
| Profitability Ratio | ||||||
| ROE1 | 445.14% | 355.67% | 362.72% | 2,023.08% | — | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Procter & Gamble Co. | 31.64% | 30.85% | 28.00% | 8.26% | — | |
| ROE, Industry | ||||||
| Consumer Staples | 38.86% | 35.45% | 35.90% | 22.50% | — | |
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
ROE = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × 1,785 ÷ 401 = 445.14%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Colgate-Palmolive Co. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Assets (ROA)
Colgate-Palmolive Co., ROA 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) | |
| Total assets | 15,731) | 15,040) | 15,920) | 15,034) | 12,161) | |
| Profitability Ratio | ||||||
| ROA1 | 11.35% | 14.40% | 16.93% | 15.74% | 19.74% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Procter & Gamble Co. | 12.58% | 11.99% | 10.79% | 3.39% | — | |
| ROA, Industry | ||||||
| Consumer Staples | 9.75% | 8.82% | 8.60% | 5.79% | — | |
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
ROA = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total assets
= 100 × 1,785 ÷ 15,731 = 11.35%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Colgate-Palmolive Co. ROA deteriorated from 2020 to 2021 and from 2021 to 2022. |