Ratio Analysis - Colgate Palmolive (Un-solved

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com
Table of Contents
Income Statements
Balance Sheet
Cash Flows

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ve (Un-solved)

Colgate-Palmolive Company
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Income Statement (Consolidated)

($ in Million Except Per Share Amounts)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other (income) expense, net
Charges for Venezuela Accounting Change
EBIT
Interest expense, net
EBT
Provision for income taxes
Net income including noncontrolling interests
Less: Net income attributable to noncontrolling interests
Net income attributable to Colgate-Palmolive Company
Earnings per common share, basic
Earnings per common share, diluted
Vertical Analysis
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other (income) expense, net
Operating profit
Interest expense, net
Income before income taxes
Provision for income taxes
Net income including noncontrolling interests
Less: Net income attributable to noncontrolling interests (% of Net Income)
Net income attributable to Colgate-Palmolive Company
Effective Tax Rates

Horizontal Analysis
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other (income) expense, net

Operating profit
Interest expense, net
Income before income taxes
Provision for income taxes
Net income including noncontrolling interests
Less: Net income attributable to noncontrolling interests
Net income attributable to Colgate-Palmolive Company
Trend Analysis
Sales
Net Profit
Sales
Net Profit

Business Risk
Sales
Operating Profit (EBIT)
Net Income
Total Leverage
Operating Leverage
Financial Leverage

Dec-07
13,790
6,043
7,747

Dec-08
15,330
6,704
8,626

Dec-09
15,327
6,319
9,008

Dec-10
15,564
6,360
9,204

Dec-11
16,734
7,144
9,590

Dec-12
17,085
7,153
9,932

4,973
54

5,422
103

5,282
111

5,414
301

5,758
(9)

5,930
113

2,720
157

3,101
96

3,615
77

3,489
59

3,841
52

3,889
15

2,563
759
1,804
67
1,737
1.68
1.60

3,005
968
2,037
80
1,957
1.91
1.83

3,538
1,141
2,397
106
2,291
2.27
2.19

3,430
1,117
2,313
110
2,203
2.23
2.16

3,789
1,235
2,554
123
2,431
2.49
2.47

3,874
1,243
2,631
159
2,472
2.60
2.57

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13
17,420
7,219
10,201

Dec-14
17,277
7,168
10,109

Dec-15
16,034
6,635
9,399

6,223
422

5,982
570

3,556
(9)

3,557
24

5,464
62
1,084
2,789
26

3,565
1,155
2,410
169
2,241
2.41
2.38

3,533
1,194
2,339
159
2,180
2.38
2.36

2,763
1,215
1,548
164
1,384
1.53
1.52

Dec-13

Dec-14

Dec-15

Dec-13

Dec-14

Dec-15

Dec-13

Dec-14

Dec-15

Dec-13

Dec-14

Dec-15

Colgate-Palmolive Company
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Consolidated Balance Sheets

Dec-07
Assets
Current Assets
Cash and cash equivalents
Receivables
Inventories
Other current assets
Total current assets
Property, plant and equipment, net
Goodwill, net
Other intangible assets, net
Deferred income taxes
Other assets
Total assets
Liabilities and Shareholders' Equity
Current Liabilities
Notes and loans payable
Current portion of long-term debt
Accounts payable
Accrued income taxes
Other accruals
Total current liabilities
Long-term debt
Deferred income taxes
Other liabilities
Total liabilities
Commitments and contingent liabilities
Shareholders' Equity
Preference stock
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Unearned compensation
Treasury stock, at cost
Total Colgate-Palmolive Company shareholders'
equity
Noncontrolling interests
Total shareholders' equity
Total liabilities and shareholders' equity

Check

429
1,681
1,171
338
3,619
3,015
2,272
845
361
10,112

156
138
1,067
263
1,539
3,163
3,222
264
1,067
7,716
198
733
1,518
10,628
(1,668)
(219)
(8,904)
2,286
110
2,396
10,112

Dec-07
Assets
Current Assets
Cash and cash equivalents
Receivables
Inventories
Other current assets
Total current assets
Property, plant and equipment, net
Goodwill, net
Other intangible assets, net
Deferred income taxes
Other assets
Total assets
Liabilities and Shareholders' Equity
Current Liabilities
Notes and loans payable
Current portion of long-term debt
Accounts payable
Accrued income taxes
Other accruals
Total current liabilities
Long-term debt
Deferred income taxes
Other liabilities
Total liabilities
Commitments and contingent liabilities
Shareholders' Equity
Preference stock
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Unearned compensation
Treasury stock, at cost
Total Colgate-Palmolive Company shareholders'
equity
Noncontrolling interests
Total shareholders' equity
Total liabilities and shareholders' equity

Solvency Ratios
Current ratio
Quick ratio
Cash ratio

Dec-07

Sales
COGS
Purchases
Turnover Ratios
Receivables turnover
Inventory Turnover
Payables turnover

Days
Average receivables collection period
Average inventory processing period
Average payment period
Cash Collection Cycle

Operating Efficiency
Total asset turnover
Net fixed asset turnover
Equity turnover
Operating Profitability
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Total Assets
Return on Total Equity
Return on Owner's Equity or ROE
ROE DuPont Analysis
Profit Margin
Asset Turnover
Financial Leverage
ROE

Total Dividends Paid

Net Income
Dividend Payout Ratio
Retention Ratio
Sustainable Growth

365

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

555
1,592
1,197
366
3,710

600
1,626
1,209
375
3,810

490
1,610
1,222
408
3,730

878
1,675
1,327
522
4,402

884
1,668
1,365
639
4,556

3,119
2,152
834
164
9,979

3,516
2,302
821
685
11,134

3,693
2,362
831
84
472
11,172

3,668
2,494
1,504
115
541
12,724

3,842
2,500
1,499
92
905
13,394

107
91
1,061
272
1,421
2,952

35
326
1,172
387
1,679
3,599

48
561
1,165
272
1,682
3,728

34
346
1,244
392
1,700
3,716

54
250
1,290
254
1,888
3,736

3,585
82
1,316
7,935
-

2,821
82
1,375
7,877
-

2,815
108
1,704
8,355
-

4,430
252
1,785
10,183
-

4,926
293
2,049
11,004

181
733
1,610
11,760
(2,477)
(187)
(9,697)

169
733
1,764
13,157
(2,096)
(133)
(10,478)

733
1,132
14,329
(2,115)
(99)
(11,305)

733
1,336
15,649
(2,475)
(60)
(12,808)

1,466
818
16,953
(2,621)
(41)
(14,386)

1,923
121
2,044
9,979

3,116
141
3,257
11,134

2,675
142
2,817
11,172

2,375
166
2,541
12,724

2,189
201
2,390
13,394

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

Dec-14

Dec-15

962
1,636
1,425
799
4,822

1,089
1,552
1,382
840
4,863

970
1,427
1,180
807
4,384

4,083
2,474
1,496
77
924
13,876

4,080
2,307
1,413
76
720
13,459

3,796
2,103
1,346
67
262
11,958

13
895
1,343
239
1,980
4,470

16
488
1,231
294
1,917
3,946

4
298
1,110
277
1,845
3,534

4,749
444
1,677
11,340

5,644
261
2,223
12,074

6,269
233
1,966
12,002

1,466
1,004
17,952
(2,451)
(33)
(15,633)

1,466
1,236
18,832
(3,507)
(20)
(16,862)

1,466
1,438
18,861
(3,950)
(12)
(18,102)

2,305
231
2,536
13,876

1,145
240
1,385
13,459

(299)
255
(44)
11,958

Dec-13

Dec-14

Dec-15

Dec-13

Dec-14

Dec-15

Colgate-Palmolive Company
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Consolidated Cash Flows

Dec-07
Operating Activities
Net income including noncontrolling interests
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation and amortization
Restructuring and termination benefits, net of cash
Venezuela hyperinflationary transition charge
Voluntary benefit plan contributions
Charge for a foreign tax matter
Stock-based compensation expense
Gain on sale of South Pacific laundry detergent business
Charge for Venezuela accounting change
Gain before tax on sales of non-core product lines
Deferred income taxes
Cash effects of changes in:
Receivables
Inventories
Accounts payable and other accruals
Other non-current assets and liabilities
Net cash provided by operations

Dec-08

Dec-09

Dec-10
$

Investing Activities
Capital expenditures
Sale of property and non-core product lines
Purchases of marketable securities and investments
Proceeds from sale of marketable securities and investments
Proceeds from sale of South Pacific laundry detergent business
Payment for acquisitions, net of cash acquired
Reduction in cash due to Venezuela accounting change
Other
Net cash used in investing activities
Cash Flow for Financing Activities
Financing Activities
Principal payments on debt
Proceeds from issuance of debt
Revolver
Dividends paid
Purchases of treasury shares
Proceeds from exercise of stock options and excess tax benefits
Net cash used in financing activities
Effect of exchange rate changes on Cash and cash equivalents

2,313 $

Dec-11
2,554 $

Dec-12
2,631 $

Dec-13

Dec-14

2,410 $

2,339 $

442
64
327
(2)
66
131
0
0

Dec-15 Err:509
1,548

376
86
271
(35)

421
103
(178)

425
35
(101)

439
182
172
(101)

449
69
34

121

122

120

128

(50)
29

(207)
88

63

71

18

-51

40
(10)
(65)
135
3,211

(130)
(130)
199
54
2,896

19
(21)
(5)
30
3,196

(37)
(97)
24
13
3,204

(109)
(60)
57
25
3,298

(75)
(13)
(67)
33
2,949

(550)
42
(308)
167

(537)
263
(356)
423

(565)
72
(545)
147

(670)
15
(505)
267

(966)

(29)

(3)

(9)
(658)

(40)
(1,213)

55
(865)

6
(890)

(757)
24
(340)
283
0
(87)
0
18
(859)

(691)
9
(742)
599
221
(13)
(75)
7
(685)

125
-187
1084

2,553

1,683

2,331

2,314

(4,719)
5,015

(4,429)
5,843

(5,011)
5,452

(7,554)
7,976

(8,525)
8,960

(9,181)
9,602

(1,142)
(2,020)
242
(2,624)

(1,203)
(1,806)
353
(1,242)

(1,277)
(1,943)
478
(2,301)

(1,382)
(1,521)
339
(2,142)

(1,446)
(1,530)
371
(2,170)

(1,493)
(1,551)
347
(2,276)

(39)

(53)

(24)

(94)

(142)

(107)

Net increase (decrease) in Cash and cash equivalents

(110)

388

78

127

(119)

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

600
490 $

490
878 $

878
884 $

884
962 $

962
1,089 $

1089
970

1,123 $
70

1,007 $
58

1,280 $
77

1,087 $
118

1,009 $
133

1,259
131

Supplemental Cash Flow Information

Income taxes paid
Interest paid

Err:509

Err:509