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PROJECT
Financial Statement Analysis for
Investment Decision
Prepared by:Arfan Haider
Company History
• Colgate-Palmolive Company (together with its subsidiaries, the “Company” or “Colgate”) is a leading
consumer products company whose products are marketed in over 200 countries and territories
throughout the world.
• The Company was founded by William Colgate in New York in 1806 and Initially made starch, soap, and
candles. After the founder's death in 1857, company becomes known as Colgate & Company. In 1873,
Toothpaste is first time introduced and marketed in glass Jars. Later in 1896 was the first toothpaste
introduced in collapsible tube, in New York City. In 1898: B.J. Johnson Soap Company (later
renamed Palmolive Company) introduces Palmolive soap. In 1923 Colgate incorporated under state Law of
Delware and in 1928 colgate merged with Palmolive-peet to become Colgate-Palmolive company.
• In 1957, Colgate established its first factory in India to produce toothpaste for the domestic market, and by
1999 became the highest selling brand in the world. Colgate products are marketed in China under its
Chinese Brand name (Pinyin: Gāolùjié), which means "high-quality cleaning gel". As of 2002, Colgate
occupied 20% of the market share for toothpastes in China.As of 2015, it also commanded approximately
70% of the oral care market in Brazil.
• As of 2019, Oral, Personal and Home Care products segment accounted for 46%, 20% and 18%,
respectively, of the Company’s total worldwide Net sales in 2019. Geographically, Oral Care is a significant
part of the Company’s business in Asia Pacific, comprising approximately 84% of Net sales in that region
for 2019. Sales of Pet Nutrition products accounted for 16% of the Company’s total worldwide Net sales
in 2019.
Prepared by:Arfan Haider
Overview
▪ $15.5B global consumer products company, founded in
1806
▪ Approximately 35,000 Colgate people worldwide
▪ Products sold in over 200 countries
▪ Four core categories
– Oral Care – Personal Care
– Pet Nutrition – Home Care
Prepared by:Arfan Haider
Brands
Oral Care
• Colgate Oral Care brand includesToothpaste,Toothbrushes, Mouthwashes, Kids
products,Tooth care specialty products and prescription only products.
• InToothpaste & Manual Brushes Colgate's #1 market share worldwide.
• Mouthwash brands is ranked as #2 market share worldwide.
• Colgate is brand most
recommended by the dental
profession worldwide
• Oral Care brands net sale
contribution is 47% inTotal
Revenue of Colgate Palmolive.
Prepared by:Arfan Haider
Brands
Personal Care
• Colgate Personal Care brand includes
Shampoo, body wash, deodorants,
soaps lotions and other skin caring
items .
• Personal Care brands net sale
contribution is 20% in theTotal
Revenue of Colgate Palmolive.
Prepared by:Arfan Haider
Personal care Brandwise competition
Prepared by:Arfan Haider
Brands
Home Care
• Colgate Home Care products includes
dishwasher, detergents, wood care,
stain remover, multi-cleanser and
Fabric care items .
• Home Care brands net sale
contribution is 18% inTotal Revenue
of Colgate Palmolive.
Prepared by:Arfan Haider
Brands
Pet Care
• Hills Pet Nutrition was Purchase in 1976.
• Home Care brands net sale contribution is
16% inTotal Revenue of Colgate Palmolive
• Brand stated in small town now available
in 86 countries around the world.
• Sold exclusively through veterinarians,
specialty pet food stores and e-retailers.
▪#1 market share in vet clinics in U.S.*
• Since 2015, Colgate Palmolive investing
in the innovation of organic products
and driving organic sales growth.
• Colgate continues to expand portfolio
by introducing pharmacy brands in skin
care and personal care.
• It is also expanding product availability
through the e-commerce channel.
• By Organic sales, which excludes the
impact of foreign exchange rates,
Jumped to 4%, which is higher than the
expected growth rate 3%.Prepared by:Arfan Haider
New Acquisition & Investments
▪#1 market share in vet clinics in U.S.*
• Colgate Announced to acquire Hello
Products LLC, (“Hello”).
• Fastest growing, Natural organic Oral care
brands in the United States.
• Famous in younger consumers and across
broad segment.
• Transaction will be financed in combination
of both cash & Debt.
• Including transaction costs, the acquisition
is expected to be flat to a penny dilutive to
2020 diluted earnings per share.
Prepared by:Arfan Haider
Colgate-Palmolive Awards & Recognition
Colgate-Palmolive continues to be recognized for efforts in sustainability, social
responsibility, diversity, innovation and workplace balance.
• In 2019, Ranked in 100 most sustainable companies in US.
• Recognized as the Best Employer for PromotingAsian PacificAmericans into
Leadership positions.
• Recognized as worlds most ethical company.
• 2019 Energy Star Award Winner for saving energy and protecting environment.
• Ranked inTop 25 best supply chain companies.
• Forbes ranking as Americas Most reputable company.
• Received 2019 Leadership Award from U.S Green BuildingCouncil.
• 2019 Woman’s choice Award for best companies for Millennial s,Woman and Multi
culturalWoman's.
• Included in 2019 list ofTop 100 Disability Equality Index®Top-ScoringCompanies
Prepared by:Arfan Haider
Dollars in Millions Except Per Share
Consolidated Statements of Income
For the years ended December 31,
2018 2017 2016 2015 2014 2013 2012 2011 2010
Net sales $15,544 $15,454 $15,195 $16,034 $17,277 $17,420 $17,085 $16,734 $15,564
% Change 0.58% 1.70% -5.23% -7.19% -0.82% 1.96% 2.10% 7.52%
Cost of sales 6,313 6,174 6,072 6,635 7,168 7,219 7,153 7,144 6,360
Gross profit 9,231 9,280 9,123 9,399 10,109 10,201 9,932 9,590 9,204
% Sale 59.39% 60.05% 60.04% 58.62% 58.51% 58.56% 58.13% 57.31% 59.14%
Selling, general & administrative expenses 5,389 5,400 5,143 5,464 5,982 6,223 5,930 5,758 5,414
% Sale 34.67% 34.94% 33.85% 34.08% 34.62% 35.72% 34.71% 34.41% 34.79%
Other (income) expense, net 148 173 25 62 570 422 113 -9 301
Charge for Venezuela accounting change - - - 1,084 - 0 0 0 0
Operating profit 3,694 3,707 3,955 2,789 3,557 3,556 3,889 3,832 3,489
% Sale 23.76% 23.99% 26.03% 17.39% 20.59% 20.41% 22.76% 22.90% 22.42%
Interest (income) expense, net 230 220 217 26 24 -9 15 52 59
Income before income taxes 3,464 3,487 3,738 2,763 3,533 3,565 3,874 3,789 3,430
% Sale 22.29% 22.56% 24.60% 17.23% 20.45% 20.46% 22.67% 22.64% 22.04%
Provision for income taxes 906 1,313 1,152 1,215 1,194 1,155 1,243 1,235 1,117
Net income including NCI 2,558 2,174 2,586 1,548 2,339 2,410 2,631 2,554 2,313
Less: Net income attributable to NCI 158 150 145 164 159 169 159 123 110
Net income attributable to Colgate-Palm $2,400 $2,024 $2,441 $1,384 $2,180 $2,241 $2,472 $2,431 $2,203
% Sales 15.44% 13.10% 16.06% 8.63% 12.62% 12.86% 14.47% 14.53% 14.15%
% Change 18.58% -17.08% 76.37% -36.51% -2.72% -9.34% 1.69% 10.35%
Earnings per common share, basic $2.76 $2.30 $2.74 $1.53 $2.38 $2.41 $2.60 $4.98 $4.45
Earnings per common share, diluted $2.75 $2.28 $2.72 $1.52 $2.36 $2.38 $2.57 $4.94 $4.31
Prepared by:Arfan Haider
Dollars in Millions Except Share and Per Share Amounts
Consolidated Balance Sheets
As of December 31,
2018 2017 2016 2015 2014 2013 2012 2011
Assets (A)
Current Assets
Cash and cash equivalents $726 $1,535 $1,315 $970 $1,089 $962 $884 $878
Receivables 1,400 1,480 1,411 1,427 1,552 1,636 1,668 1,675
Inventories 1,250 1,221 1,171 1,180 1,382 1,425 1,365 1,327
Other current assets 417 403 441 807 840 908 639 522
Total current assets 3,793 4,639 4,338 4,384 4,863 4,931 4,556 4,402
Property, plant and equipment, net 3,881 4,072 3,840 3,796 4,080 4,083 3,842 3,668
Goodwill 2,530 2,218 2,107 2,103 2,307 2,474 2,500 2,494
Other intangible assets, net 1,637 1,341 1,313 1,346 1,413 1,496 1,499 1,504
Deferred income taxes 152 188 301 67 76 77 92 115
Other assets 168 218 224 239 720 924 905 541
Total assets $12,161 $12,676 $12,123 $11,935 $13,459 $13,985 $13,394 $12,724
Liabilities and Shareholders’ Equity
Current Liabilities
Notes and loans payable $12 $11 $13 $4 $16 $13 $54 $34
Current portion of long-term debt - - 0 298 488 895 250 346
Accounts payable 1,222 1,212 1,124 1,110 1,231 1,343 1,290 1,244
Accrued income taxes 411 354 441 277 294 239 254 392
Other accruals 1,696 1,831 1,727 1,845 1,917 2,089 1,888 1,700
Total current liabilities 3,341 3,408 3,305 3,534 3,946 4,579 3,736 3,716
Long-term debt 6,354 6,566 6,520 6,246 5,644 4,749 4,926 4,430
Deferred income taxes 235 204 246 233 261 444 293 252
Other liabilities 2,034 2,255 2,035 1,966 2,223 1,677 2,049 1,785
Total liabilities 11,964 12,433 12,106 11,979 12,074 11,449 11,004 10,183
Commitments and contingent liabilities - - - - - - - -
Shareholders’ Equity
Common stock, $1 par value
(2,000,000,000 shares authorized, 1,465,706,360
shares issued)
1,466 1,466 1,466 1,466 1,466 1,466 733 733
Additional paid-in capital 2,204 1,984 1,691 1,438 1,236 1,004 1,551 1,336
Retained earnings 21,615 20,531 19,922 18,861 18,832 17,952 16,953 15,649
Accumulated other comprehensive income (loss) -4,188 -3,855 -4,180 -3,950 -3,507 -2,451 -2,621 -2,475
Unearned compensation -3 -5 -7 -12 -20 -33 -41 -60
Treasury stock, at cost -21,196 -20,181 -19,135 -18,102 -16,862 -15,633 -14,386 -12,808
Total Colgate-Palmol shareholders’ equity -102 -60 -243 -299 1,145 2,305 2,189 2,375
Noncontrolling interests 299 303 260 255 240 231 201 166
Total equity 197 243 17 -44 1,385 2,536 2,390 2,541
Total liabilities and equity $12,161 $12,676 $12,123 $11,935 $13,459 $13,985 $13,394 $12,724
Prepared by:Arfan Haider
Unaudited Financial Statement
Consolidated Statements of Income - USD ($)
Released date: 02-21-2019
$ in Millions
2019 2018
Net Sales 15693 15544
Cost of sales 6368 6313
Gross profit 9325 9231
Selling, general and administrative expenses 5575 5389
Other (income) expense, net 196 148
Operating profit 3554 3694
Non-service related postretirement costs 108 87
Interest (income) expense, net 145 143
Income before income taxes 3301 3464
Provision for income taxes 774 906
Net income including noncontrolling interests 2527 2558
Less: Net income attributable to noncontrolling interests 160 158
Net income attributable to Colgate-Palmolive Company 2367 2400
Earnings per common share, basic (in dollars per share) 2.76 2.76
Earnings per common share, diluted (in dollars per share) 2.75 2.75
Prepared by:Arfan Haider
Annual Performance
Prepared by:Arfan Haider
2-years Financial Performance Comparison
(Dollars in Millions Except Per Share Amounts) 2019 2018 Change
Worldwide Net Sales $15,693 $15,544 1.00%
Organic Sales Growth 0.50%
Gross Profit Margin 59.40% 59.40% -
Operating Profit* $3,554 $3,694 -4%
Operating Profit Margin* 22.60% 23.80% -120 basis points
Net Income Attributable to Colgate-Palmolive Company** $2,367 $2,400 -1%
Diluted Earnings Per Share** $2.75 $2.75 0%
Dividends Paid Per Share $1.71 $1.66 3%
Operating Cash Flow $3,133 $3,056 3%
Year-end Stock Price $68.84 $59.52 16%
Prepared by:Arfan Haider
Colgate Palmolive Financial Ratios
Financial Ratio Analysis
For the years ended December 31,
Ratios based on Annual Data 2019 2018 2017 2016 2015
Cuurent Ratio 1.03 1.353 1.3612 1.3126 1.2405
Long-Term debt/capital Ratio 0.9699 0.9699 0.9643 0.9974 0.6733
Debt Equity Ratio 32.3147 32.3147 27.0658 384.29 -148.82
Gross profit Margin 59.42% 59.39% 60.05% 60.04% 58.62%
Operating Profit Margin 22.65% 23.76% 23.22% 25.25% 17.39%
EBITDA Margin 25.29 27.0522 27.061 28.9437 20.1946
Pre-Tax Profit Margin 21.03 22.2851 22.5637 24.6002 17.2321
Net Profit Margin 15.08% 15.44% 13.10% 16.06% 8.63%
Assets Turnover 1.15 1.2782 1.219 1.2534 1.3434
Inventory Turnover Ratio 4.81 5.0504 5.0565 5.1853 5.6229
Receivable Turnover 11.1029 10.4419 10.769 11.2362
Days sales in Receivables 32.8744 34.9554 33.8937 32.4844
ROE- Return on Equity 1849.22 1298.477 894.6501 15211.76 -3518.182
ROA- Return on Assets 17.4 21.0345 17.1505 21.3314 12.9703
ROI- Return on Investment 68.04 39.0475 31.9283 39.5594 24.9597
PE Ratio 26.84 25.03 27.23 27.25 25.57
EPS 2.75 2.7 2.63 2.68
Book value per share 0.2283 0.2778 0.0193 -0.0493
Operating Cash Flow per share 3.5006 3.44 3.4962 3.2417
Free cash flow per share 7.15 7.05 7.01 6.96
Prepared by:Arfan Haider
Current ratio 2019 2018 2017 2016 2015
Selected Financial Data (US$ in millions)
Current assets 4,179 3,793 4,639 4,338 4,384
Current liabilities 4,038 3,341 3,408 3,305 3,534
Liquidity Ratio
Current ratio 1.03 1.14 1.36 1.31 1.24
Benchmarks
Current Ratio, Competitors
Estée Lauder Cos. Inc. 1.57 1.86 1.76 1.58 2.09
Kimberly-Clark Corp. 0.73 0.77 0.89 0.87 0.85
Current Ratio, Industry
Consumer Goods — 0.99 1.11 1.10 1.18
Gross profit margin 2019 2018 2017 2016 2015
Selected Financial Data (US$ in millions)
Gross profit 9,325 9,231 9,280 9,123 9,399
Net sales 15,693 15,544 15,454 15,195 16,034
Profitability Ratio
Gross profit margin 59.42% 59.39% 60.05% 60.04% 58.62%
Benchmarks
Gross Profit Margin, Competitors
Estée LauderCos. Inc. 77.21% 79.22% 79.39% 80.63% 80.51%
Kimberly-Clark Corp. 32.71% 30.28% 35.89% 36.54% 35.63%Prepared by:Arfan Haider
Ratio Analysis
RATIOS
COMPANY NAME TICKER QUICK WORK. CAP. DEBT / EQUITY ASSET TURNOVER
Colgate-palmolive Company CL 0.22 1.06 0.5 1.12
Cca Industries Inc CAW 0.09 1.37 0.09 1.12
Church & Dwight Co., Inc. CHD 0.14 0.82 0.16 0.68
The Clorox Company CLX 0.11 0.94 0.66 1.16
Ecolab Inc. ECL 0.03 1.21 0.11 0.72
Hawkins, Inc. HWKN 0.12 2.49 0.04 1.38
Johnson & Johnson JNJ 0.52 1.32 0.03 0.53
Northern Technologies International
Corporation NTIC 0.92 4.61 - 0.84
Procter & Gamble Co PG 0.25 0.72 0.19 0.6
COMPANY NAME TICKER ROA ROI ROE RECEIV. TURN.INVENT. TURN.
Colgate-palmolive Company CL 18.02 % 74.75 % 1974.22 % 10.34 4.74
Church & Dwight Co., Inc. CHD 8.97 % 16.29 % 22.67 % 11.96 7.42
The Clorox Company CLX
15.53
% 51.86 % 135.83 % 10.78 6.43
Ecolab Inc. ECL 7.46 % 14.84 % 18.58 % 5.49 5.43
Hawkins, Inc. HWKN 7 % 10.17 % 12.13 % 8.46 7.44
Johnson & Johnson JNJ 9.78 % 16 % 25.47 % 5.65 3.02
Northern Technologies International
Corporation NTIC 8.3 % 8.81 % 9.28 % 134.91 3.51Prepared by:Arfan Haider
Current Share Price, Dividend Payout and DividendYeild
Prepared by:Arfan Haider
CL share Price Vs. Cometitors
Prepared by:Arfan Haider
Recommendation
CLTrend
Colgate-Palmolive Company lies in the middle of a wide and strong rising trend in the
short term and a further rise within the trend is signaled. Given the current short-term
trend, the stock is expected to rise 13.76% during the next 3 months and, with 90%
probability hold a price between $81.56 and $89.80 at the end of this period.
CL Stock Evaluation
Several short-term signals, along with a general good trend, are positive and I conclude
that the current level may hold a buying opportunity, as there is a fair chance for this
stock to perform well in the short-term.
Prepared by:Arfan Haider

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Colgate Palmolive project

  • 1. PROJECT Financial Statement Analysis for Investment Decision Prepared by:Arfan Haider
  • 2. Company History • Colgate-Palmolive Company (together with its subsidiaries, the “Company” or “Colgate”) is a leading consumer products company whose products are marketed in over 200 countries and territories throughout the world. • The Company was founded by William Colgate in New York in 1806 and Initially made starch, soap, and candles. After the founder's death in 1857, company becomes known as Colgate & Company. In 1873, Toothpaste is first time introduced and marketed in glass Jars. Later in 1896 was the first toothpaste introduced in collapsible tube, in New York City. In 1898: B.J. Johnson Soap Company (later renamed Palmolive Company) introduces Palmolive soap. In 1923 Colgate incorporated under state Law of Delware and in 1928 colgate merged with Palmolive-peet to become Colgate-Palmolive company. • In 1957, Colgate established its first factory in India to produce toothpaste for the domestic market, and by 1999 became the highest selling brand in the world. Colgate products are marketed in China under its Chinese Brand name (Pinyin: Gāolùjié), which means "high-quality cleaning gel". As of 2002, Colgate occupied 20% of the market share for toothpastes in China.As of 2015, it also commanded approximately 70% of the oral care market in Brazil. • As of 2019, Oral, Personal and Home Care products segment accounted for 46%, 20% and 18%, respectively, of the Company’s total worldwide Net sales in 2019. Geographically, Oral Care is a significant part of the Company’s business in Asia Pacific, comprising approximately 84% of Net sales in that region for 2019. Sales of Pet Nutrition products accounted for 16% of the Company’s total worldwide Net sales in 2019. Prepared by:Arfan Haider
  • 3. Overview ▪ $15.5B global consumer products company, founded in 1806 ▪ Approximately 35,000 Colgate people worldwide ▪ Products sold in over 200 countries ▪ Four core categories – Oral Care – Personal Care – Pet Nutrition – Home Care Prepared by:Arfan Haider
  • 4. Brands Oral Care • Colgate Oral Care brand includesToothpaste,Toothbrushes, Mouthwashes, Kids products,Tooth care specialty products and prescription only products. • InToothpaste & Manual Brushes Colgate's #1 market share worldwide. • Mouthwash brands is ranked as #2 market share worldwide. • Colgate is brand most recommended by the dental profession worldwide • Oral Care brands net sale contribution is 47% inTotal Revenue of Colgate Palmolive. Prepared by:Arfan Haider
  • 5. Brands Personal Care • Colgate Personal Care brand includes Shampoo, body wash, deodorants, soaps lotions and other skin caring items . • Personal Care brands net sale contribution is 20% in theTotal Revenue of Colgate Palmolive. Prepared by:Arfan Haider
  • 6. Personal care Brandwise competition Prepared by:Arfan Haider
  • 7. Brands Home Care • Colgate Home Care products includes dishwasher, detergents, wood care, stain remover, multi-cleanser and Fabric care items . • Home Care brands net sale contribution is 18% inTotal Revenue of Colgate Palmolive. Prepared by:Arfan Haider
  • 8. Brands Pet Care • Hills Pet Nutrition was Purchase in 1976. • Home Care brands net sale contribution is 16% inTotal Revenue of Colgate Palmolive • Brand stated in small town now available in 86 countries around the world. • Sold exclusively through veterinarians, specialty pet food stores and e-retailers. ▪#1 market share in vet clinics in U.S.* • Since 2015, Colgate Palmolive investing in the innovation of organic products and driving organic sales growth. • Colgate continues to expand portfolio by introducing pharmacy brands in skin care and personal care. • It is also expanding product availability through the e-commerce channel. • By Organic sales, which excludes the impact of foreign exchange rates, Jumped to 4%, which is higher than the expected growth rate 3%.Prepared by:Arfan Haider
  • 9. New Acquisition & Investments ▪#1 market share in vet clinics in U.S.* • Colgate Announced to acquire Hello Products LLC, (“Hello”). • Fastest growing, Natural organic Oral care brands in the United States. • Famous in younger consumers and across broad segment. • Transaction will be financed in combination of both cash & Debt. • Including transaction costs, the acquisition is expected to be flat to a penny dilutive to 2020 diluted earnings per share. Prepared by:Arfan Haider
  • 10. Colgate-Palmolive Awards & Recognition Colgate-Palmolive continues to be recognized for efforts in sustainability, social responsibility, diversity, innovation and workplace balance. • In 2019, Ranked in 100 most sustainable companies in US. • Recognized as the Best Employer for PromotingAsian PacificAmericans into Leadership positions. • Recognized as worlds most ethical company. • 2019 Energy Star Award Winner for saving energy and protecting environment. • Ranked inTop 25 best supply chain companies. • Forbes ranking as Americas Most reputable company. • Received 2019 Leadership Award from U.S Green BuildingCouncil. • 2019 Woman’s choice Award for best companies for Millennial s,Woman and Multi culturalWoman's. • Included in 2019 list ofTop 100 Disability Equality Index®Top-ScoringCompanies Prepared by:Arfan Haider
  • 11. Dollars in Millions Except Per Share Consolidated Statements of Income For the years ended December 31, 2018 2017 2016 2015 2014 2013 2012 2011 2010 Net sales $15,544 $15,454 $15,195 $16,034 $17,277 $17,420 $17,085 $16,734 $15,564 % Change 0.58% 1.70% -5.23% -7.19% -0.82% 1.96% 2.10% 7.52% Cost of sales 6,313 6,174 6,072 6,635 7,168 7,219 7,153 7,144 6,360 Gross profit 9,231 9,280 9,123 9,399 10,109 10,201 9,932 9,590 9,204 % Sale 59.39% 60.05% 60.04% 58.62% 58.51% 58.56% 58.13% 57.31% 59.14% Selling, general & administrative expenses 5,389 5,400 5,143 5,464 5,982 6,223 5,930 5,758 5,414 % Sale 34.67% 34.94% 33.85% 34.08% 34.62% 35.72% 34.71% 34.41% 34.79% Other (income) expense, net 148 173 25 62 570 422 113 -9 301 Charge for Venezuela accounting change - - - 1,084 - 0 0 0 0 Operating profit 3,694 3,707 3,955 2,789 3,557 3,556 3,889 3,832 3,489 % Sale 23.76% 23.99% 26.03% 17.39% 20.59% 20.41% 22.76% 22.90% 22.42% Interest (income) expense, net 230 220 217 26 24 -9 15 52 59 Income before income taxes 3,464 3,487 3,738 2,763 3,533 3,565 3,874 3,789 3,430 % Sale 22.29% 22.56% 24.60% 17.23% 20.45% 20.46% 22.67% 22.64% 22.04% Provision for income taxes 906 1,313 1,152 1,215 1,194 1,155 1,243 1,235 1,117 Net income including NCI 2,558 2,174 2,586 1,548 2,339 2,410 2,631 2,554 2,313 Less: Net income attributable to NCI 158 150 145 164 159 169 159 123 110 Net income attributable to Colgate-Palm $2,400 $2,024 $2,441 $1,384 $2,180 $2,241 $2,472 $2,431 $2,203 % Sales 15.44% 13.10% 16.06% 8.63% 12.62% 12.86% 14.47% 14.53% 14.15% % Change 18.58% -17.08% 76.37% -36.51% -2.72% -9.34% 1.69% 10.35% Earnings per common share, basic $2.76 $2.30 $2.74 $1.53 $2.38 $2.41 $2.60 $4.98 $4.45 Earnings per common share, diluted $2.75 $2.28 $2.72 $1.52 $2.36 $2.38 $2.57 $4.94 $4.31 Prepared by:Arfan Haider
  • 12. Dollars in Millions Except Share and Per Share Amounts Consolidated Balance Sheets As of December 31, 2018 2017 2016 2015 2014 2013 2012 2011 Assets (A) Current Assets Cash and cash equivalents $726 $1,535 $1,315 $970 $1,089 $962 $884 $878 Receivables 1,400 1,480 1,411 1,427 1,552 1,636 1,668 1,675 Inventories 1,250 1,221 1,171 1,180 1,382 1,425 1,365 1,327 Other current assets 417 403 441 807 840 908 639 522 Total current assets 3,793 4,639 4,338 4,384 4,863 4,931 4,556 4,402 Property, plant and equipment, net 3,881 4,072 3,840 3,796 4,080 4,083 3,842 3,668 Goodwill 2,530 2,218 2,107 2,103 2,307 2,474 2,500 2,494 Other intangible assets, net 1,637 1,341 1,313 1,346 1,413 1,496 1,499 1,504 Deferred income taxes 152 188 301 67 76 77 92 115 Other assets 168 218 224 239 720 924 905 541 Total assets $12,161 $12,676 $12,123 $11,935 $13,459 $13,985 $13,394 $12,724 Liabilities and Shareholders’ Equity Current Liabilities Notes and loans payable $12 $11 $13 $4 $16 $13 $54 $34 Current portion of long-term debt - - 0 298 488 895 250 346 Accounts payable 1,222 1,212 1,124 1,110 1,231 1,343 1,290 1,244 Accrued income taxes 411 354 441 277 294 239 254 392 Other accruals 1,696 1,831 1,727 1,845 1,917 2,089 1,888 1,700 Total current liabilities 3,341 3,408 3,305 3,534 3,946 4,579 3,736 3,716 Long-term debt 6,354 6,566 6,520 6,246 5,644 4,749 4,926 4,430 Deferred income taxes 235 204 246 233 261 444 293 252 Other liabilities 2,034 2,255 2,035 1,966 2,223 1,677 2,049 1,785 Total liabilities 11,964 12,433 12,106 11,979 12,074 11,449 11,004 10,183 Commitments and contingent liabilities - - - - - - - - Shareholders’ Equity Common stock, $1 par value (2,000,000,000 shares authorized, 1,465,706,360 shares issued) 1,466 1,466 1,466 1,466 1,466 1,466 733 733 Additional paid-in capital 2,204 1,984 1,691 1,438 1,236 1,004 1,551 1,336 Retained earnings 21,615 20,531 19,922 18,861 18,832 17,952 16,953 15,649 Accumulated other comprehensive income (loss) -4,188 -3,855 -4,180 -3,950 -3,507 -2,451 -2,621 -2,475 Unearned compensation -3 -5 -7 -12 -20 -33 -41 -60 Treasury stock, at cost -21,196 -20,181 -19,135 -18,102 -16,862 -15,633 -14,386 -12,808 Total Colgate-Palmol shareholders’ equity -102 -60 -243 -299 1,145 2,305 2,189 2,375 Noncontrolling interests 299 303 260 255 240 231 201 166 Total equity 197 243 17 -44 1,385 2,536 2,390 2,541 Total liabilities and equity $12,161 $12,676 $12,123 $11,935 $13,459 $13,985 $13,394 $12,724 Prepared by:Arfan Haider
  • 13. Unaudited Financial Statement Consolidated Statements of Income - USD ($) Released date: 02-21-2019 $ in Millions 2019 2018 Net Sales 15693 15544 Cost of sales 6368 6313 Gross profit 9325 9231 Selling, general and administrative expenses 5575 5389 Other (income) expense, net 196 148 Operating profit 3554 3694 Non-service related postretirement costs 108 87 Interest (income) expense, net 145 143 Income before income taxes 3301 3464 Provision for income taxes 774 906 Net income including noncontrolling interests 2527 2558 Less: Net income attributable to noncontrolling interests 160 158 Net income attributable to Colgate-Palmolive Company 2367 2400 Earnings per common share, basic (in dollars per share) 2.76 2.76 Earnings per common share, diluted (in dollars per share) 2.75 2.75 Prepared by:Arfan Haider
  • 15. 2-years Financial Performance Comparison (Dollars in Millions Except Per Share Amounts) 2019 2018 Change Worldwide Net Sales $15,693 $15,544 1.00% Organic Sales Growth 0.50% Gross Profit Margin 59.40% 59.40% - Operating Profit* $3,554 $3,694 -4% Operating Profit Margin* 22.60% 23.80% -120 basis points Net Income Attributable to Colgate-Palmolive Company** $2,367 $2,400 -1% Diluted Earnings Per Share** $2.75 $2.75 0% Dividends Paid Per Share $1.71 $1.66 3% Operating Cash Flow $3,133 $3,056 3% Year-end Stock Price $68.84 $59.52 16% Prepared by:Arfan Haider
  • 16. Colgate Palmolive Financial Ratios Financial Ratio Analysis For the years ended December 31, Ratios based on Annual Data 2019 2018 2017 2016 2015 Cuurent Ratio 1.03 1.353 1.3612 1.3126 1.2405 Long-Term debt/capital Ratio 0.9699 0.9699 0.9643 0.9974 0.6733 Debt Equity Ratio 32.3147 32.3147 27.0658 384.29 -148.82 Gross profit Margin 59.42% 59.39% 60.05% 60.04% 58.62% Operating Profit Margin 22.65% 23.76% 23.22% 25.25% 17.39% EBITDA Margin 25.29 27.0522 27.061 28.9437 20.1946 Pre-Tax Profit Margin 21.03 22.2851 22.5637 24.6002 17.2321 Net Profit Margin 15.08% 15.44% 13.10% 16.06% 8.63% Assets Turnover 1.15 1.2782 1.219 1.2534 1.3434 Inventory Turnover Ratio 4.81 5.0504 5.0565 5.1853 5.6229 Receivable Turnover 11.1029 10.4419 10.769 11.2362 Days sales in Receivables 32.8744 34.9554 33.8937 32.4844 ROE- Return on Equity 1849.22 1298.477 894.6501 15211.76 -3518.182 ROA- Return on Assets 17.4 21.0345 17.1505 21.3314 12.9703 ROI- Return on Investment 68.04 39.0475 31.9283 39.5594 24.9597 PE Ratio 26.84 25.03 27.23 27.25 25.57 EPS 2.75 2.7 2.63 2.68 Book value per share 0.2283 0.2778 0.0193 -0.0493 Operating Cash Flow per share 3.5006 3.44 3.4962 3.2417 Free cash flow per share 7.15 7.05 7.01 6.96 Prepared by:Arfan Haider
  • 17. Current ratio 2019 2018 2017 2016 2015 Selected Financial Data (US$ in millions) Current assets 4,179 3,793 4,639 4,338 4,384 Current liabilities 4,038 3,341 3,408 3,305 3,534 Liquidity Ratio Current ratio 1.03 1.14 1.36 1.31 1.24 Benchmarks Current Ratio, Competitors Estée Lauder Cos. Inc. 1.57 1.86 1.76 1.58 2.09 Kimberly-Clark Corp. 0.73 0.77 0.89 0.87 0.85 Current Ratio, Industry Consumer Goods — 0.99 1.11 1.10 1.18 Gross profit margin 2019 2018 2017 2016 2015 Selected Financial Data (US$ in millions) Gross profit 9,325 9,231 9,280 9,123 9,399 Net sales 15,693 15,544 15,454 15,195 16,034 Profitability Ratio Gross profit margin 59.42% 59.39% 60.05% 60.04% 58.62% Benchmarks Gross Profit Margin, Competitors Estée LauderCos. Inc. 77.21% 79.22% 79.39% 80.63% 80.51% Kimberly-Clark Corp. 32.71% 30.28% 35.89% 36.54% 35.63%Prepared by:Arfan Haider
  • 18. Ratio Analysis RATIOS COMPANY NAME TICKER QUICK WORK. CAP. DEBT / EQUITY ASSET TURNOVER Colgate-palmolive Company CL 0.22 1.06 0.5 1.12 Cca Industries Inc CAW 0.09 1.37 0.09 1.12 Church & Dwight Co., Inc. CHD 0.14 0.82 0.16 0.68 The Clorox Company CLX 0.11 0.94 0.66 1.16 Ecolab Inc. ECL 0.03 1.21 0.11 0.72 Hawkins, Inc. HWKN 0.12 2.49 0.04 1.38 Johnson & Johnson JNJ 0.52 1.32 0.03 0.53 Northern Technologies International Corporation NTIC 0.92 4.61 - 0.84 Procter & Gamble Co PG 0.25 0.72 0.19 0.6 COMPANY NAME TICKER ROA ROI ROE RECEIV. TURN.INVENT. TURN. Colgate-palmolive Company CL 18.02 % 74.75 % 1974.22 % 10.34 4.74 Church & Dwight Co., Inc. CHD 8.97 % 16.29 % 22.67 % 11.96 7.42 The Clorox Company CLX 15.53 % 51.86 % 135.83 % 10.78 6.43 Ecolab Inc. ECL 7.46 % 14.84 % 18.58 % 5.49 5.43 Hawkins, Inc. HWKN 7 % 10.17 % 12.13 % 8.46 7.44 Johnson & Johnson JNJ 9.78 % 16 % 25.47 % 5.65 3.02 Northern Technologies International Corporation NTIC 8.3 % 8.81 % 9.28 % 134.91 3.51Prepared by:Arfan Haider
  • 19. Current Share Price, Dividend Payout and DividendYeild Prepared by:Arfan Haider
  • 20. CL share Price Vs. Cometitors Prepared by:Arfan Haider
  • 21. Recommendation CLTrend Colgate-Palmolive Company lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 13.76% during the next 3 months and, with 90% probability hold a price between $81.56 and $89.80 at the end of this period. CL Stock Evaluation Several short-term signals, along with a general good trend, are positive and I conclude that the current level may hold a buying opportunity, as there is a fair chance for this stock to perform well in the short-term. Prepared by:Arfan Haider