Stock Analysis on Net

Colgate-Palmolive Co. (NYSE:CL)

This company has been moved to the archive! The financial data has not been updated since July 28, 2023.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Colgate-Palmolive Co., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Turnover Ratios
Inventory turnover 3.72 4.16 3.86 4.55 5.05
Receivables turnover 11.95 13.43 13.03 10.90 11.10
Payables turnover 4.98 4.76 4.63 5.15 5.17
Working capital turnover 16.20 50.35 111.30 34.39
Average No. Days
Average inventory processing period 98 88 95 80 72
Add: Average receivable collection period 31 27 28 33 33
Operating cycle 129 115 123 113 105
Less: Average payables payment period 73 77 79 71 71
Cash conversion cycle 56 38 44 42 34

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Colgate-Palmolive Co. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Receivables turnover An activity ratio equal to revenue divided by receivables. Colgate-Palmolive Co. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Colgate-Palmolive Co. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Colgate-Palmolive Co. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Colgate-Palmolive Co. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Colgate-Palmolive Co. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Colgate-Palmolive Co. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Colgate-Palmolive Co. cash conversion cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Inventory Turnover

Colgate-Palmolive Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cost of sales 7,719 7,046 6,454 6,368 6,313
Inventories 2,074 1,692 1,673 1,400 1,250
Short-term Activity Ratio
Inventory turnover1 3.72 4.16 3.86 4.55 5.05
Benchmarks
Inventory Turnover, Competitors2
Procter & Gamble Co. 6.09 6.20 6.41 6.93
Inventory Turnover, Industry
Consumer Staples 6.96 7.97 7.50 7.42

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
Inventory turnover = Cost of sales ÷ Inventories
= 7,719 ÷ 2,074 = 3.72

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Colgate-Palmolive Co. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Receivables Turnover

Colgate-Palmolive Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net sales 17,967 17,421 16,471 15,693 15,544
Receivables, net of allowances 1,504 1,297 1,264 1,440 1,400
Short-term Activity Ratio
Receivables turnover1 11.95 13.43 13.03 10.90 11.10
Benchmarks
Receivables Turnover, Competitors2
Procter & Gamble Co. 15.59 16.11 16.98 13.67
Receivables Turnover, Industry
Consumer Staples 35.12 38.75 37.54 34.71

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
Receivables turnover = Net sales ÷ Receivables, net of allowances
= 17,967 ÷ 1,504 = 11.95

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Colgate-Palmolive Co. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Payables Turnover

Colgate-Palmolive Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cost of sales 7,719 7,046 6,454 6,368 6,313
Accounts payable 1,551 1,479 1,393 1,237 1,222
Short-term Activity Ratio
Payables turnover1 4.98 4.76 4.63 5.15 5.17
Benchmarks
Payables Turnover, Competitors2
Procter & Gamble Co. 2.83 2.70 2.92 3.09
Payables Turnover, Industry
Consumer Staples 6.61 6.91 7.01 7.11

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
Payables turnover = Cost of sales ÷ Accounts payable
= 7,719 ÷ 1,551 = 4.98

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Colgate-Palmolive Co. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022.

Working Capital Turnover

Colgate-Palmolive Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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
Less: Current liabilities 4,004 4,051 4,404 4,038 3,341
Working capital 1,109 346 (66) 141 452
 
Net sales 17,967 17,421 16,471 15,693 15,544
Short-term Activity Ratio
Working capital turnover1 16.20 50.35 111.30 34.39
Benchmarks
Working Capital Turnover, Competitors2
Procter & Gamble Co.
Working Capital Turnover, Industry
Consumer Staples

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
Working capital turnover = Net sales ÷ Working capital
= 17,967 ÷ 1,109 = 16.20

2 Click competitor name to see calculations.


Average Inventory Processing Period

Colgate-Palmolive Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Inventory turnover 3.72 4.16 3.86 4.55 5.05
Short-term Activity Ratio (no. days)
Average inventory processing period1 98 88 95 80 72
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Procter & Gamble Co. 60 59 57 53
Average Inventory Processing Period, Industry
Consumer Staples 52 46 49 49

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.72 = 98

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Colgate-Palmolive Co. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Receivable Collection Period

Colgate-Palmolive Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Receivables turnover 11.95 13.43 13.03 10.90 11.10
Short-term Activity Ratio (no. days)
Average receivable collection period1 31 27 28 33 33
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Procter & Gamble Co. 23 23 21 27
Average Receivable Collection Period, Industry
Consumer Staples 10 9 10 11

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.95 = 31

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Colgate-Palmolive Co. number of days of receivables outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Operating Cycle

Colgate-Palmolive Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Average inventory processing period 98 88 95 80 72
Average receivable collection period 31 27 28 33 33
Short-term Activity Ratio
Operating cycle1 129 115 123 113 105
Benchmarks
Operating Cycle, Competitors2
Procter & Gamble Co. 83 82 78 80
Operating Cycle, Industry
Consumer Staples 62 55 59 60

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 cycle = Average inventory processing period + Average receivable collection period
= 98 + 31 = 129

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Colgate-Palmolive Co. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Payables Payment Period

Colgate-Palmolive Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Payables turnover 4.98 4.76 4.63 5.15 5.17
Short-term Activity Ratio (no. days)
Average payables payment period1 73 77 79 71 71
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Procter & Gamble Co. 129 135 125 118
Average Payables Payment Period, Industry
Consumer Staples 55 53 52 51

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.98 = 73

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Colgate-Palmolive Co. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022.

Cash Conversion Cycle

Colgate-Palmolive Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Average inventory processing period 98 88 95 80 72
Average receivable collection period 31 27 28 33 33
Average payables payment period 73 77 79 71 71
Short-term Activity Ratio
Cash conversion cycle1 56 38 44 42 34
Benchmarks
Cash Conversion Cycle, Competitors2
Procter & Gamble Co. -46 -53 -47 -38
Cash Conversion Cycle, Industry
Consumer Staples 7 2 7 9

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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 98 + 3173 = 56

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Colgate-Palmolive Co. cash conversion cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.