Colgate-Palmolive Co (BUE:CL) Beneish M-Score : -2.88 (As of Mar. 25, 2025)

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What is Colgate-Palmolive Co Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Colgate-Palmolive Co's Beneish M-Score or its related term are showing as below:

BUE:CL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25 Med: -2.74 Max: -2.36
Current: -2.88

During the past 13 years, the highest Beneish M-Score of Colgate-Palmolive Co was -2.36. The lowest was -3.25. And the median was -2.74.

Colgate-Palmolive Co Beneish M-Score Historical Data

The historical data trend for Colgate-Palmolive Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Colgate-Palmolive Co Beneish M-Score Chart

Colgate-Palmolive Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.86

-2.62

-2.36

-2.72

-2.88

Colgate-Palmolive Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.72	-2.64	-2.69	-2.69	-2.88

Competitive Comparison of Colgate-Palmolive Co's Beneish M-Score

For the Household & Personal Products subindustry, Colgate-Palmolive Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Colgate-Palmolive Co's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Colgate-Palmolive Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Colgate-Palmolive Co's Beneish M-Score falls into.

Colgate-Palmolive Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Colgate-Palmolive Co for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.8099

0.528 * 0.9658

0.404 * 0.9864

0.892 * 3.3131

0.115 * 0.8137

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0471

4.679 * -0.063638

0.327 * 1.0311

-0.95

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was ARS1,536,210 Mil.
Revenue was 4994450.05 + 4783866.29 + 4529438.935 + 4267262.573 = ARS18,575,018 Mil.
Gross Profit was 3011820.03 + 2921836.872 + 2745602.961 + 2560357.544 = ARS11,239,617 Mil.
Total Current Assets was ARS5,370,170 Mil.
Total Assets was ARS16,206,460 Mil.
Property, Plant and Equipment(Net PPE) was ARS4,466,220 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS559,023 Mil.
Selling, General, & Admin. Expense(SGA) was ARS7,146,604 Mil.
Total Current Liabilities was ARS5,816,590 Mil.
Long-Term Debt & Capital Lease Obligation was ARS7,822,450 Mil.
Net Income was 746390.007 + 700518.469 + 654610.491 + 575427.51 = ARS2,676,946 Mil.
Non Operating Income was -82820.001 + -21861.499 + -19701 + -18535 = ARS-142,918 Mil.
Cash Flow from Operations was 1281690.013 + 1109233.451 + 886544.987 + 573742.51 = ARS3,851,211 Mil.

Total Receivables was ARS572,546 Mil.
Revenue was 1786950.002 + 1720004.297 + 1157279.991 + 942313.522 = ARS5,606,548 Mil.
Gross Profit was 1064950.001 + 1006806.178 + 668879.995 + 535755.612 = ARS3,276,392 Mil.
Total Current Assets was ARS1,905,719 Mil.
Total Assets was ARS5,917,873 Mil.
Property, Plant and Equipment(Net PPE) was ARS1,654,102 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS164,629 Mil.
Selling, General, & Admin. Expense(SGA) was ARS2,060,105 Mil.
Total Current Liabilities was ARS1,711,501 Mil.
Long-Term Debt & Capital Lease Obligation was ARS3,118,679 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1536210.015 / 18575017.848)	/	(572546.001 / 5606547.812)
	=	0.082703	/	0.102121
	=	0.8099

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(3276391.786 / 5606547.812)	/	(11239617.407 / 18575017.848)
	=	0.584387	/	0.605093
	=	0.9658

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (5370170.054 + 4466220.045) / 16206460.162)	/	(1 - (1905719.002 + 1654102.001) / 5917873.005)
	=	0.393057	/	0.398463
	=	0.9864

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	18575017.848	/	5606547.812
	=	3.3131

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(164629.202 / (164629.202 + 1654102.001))	/	(559023.495 / (559023.495 + 4466220.045))
	=	0.090519	/	0.111243
	=	0.8137

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(7146603.938 / 18575017.848)	/	(2060104.824 / 5606547.812)
	=	0.384743	/	0.367446
	=	1.0471

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((7822450.078 + 5816590.058) / 16206460.162)	/	((3118679.003 + 1711501.002) / 5917873.005)
	=	0.84158	/	0.816202
	=	1.0311

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(2676946.477 - -142917.5	-	3851210.961)	/	16206460.162
	=	-0.063638

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Colgate-Palmolive Co has a M-score of -0.95 signals that the company is likely to be a manipulator.

Colgate-Palmolive Co Beneish M-Score Related Terms

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Colgate-Palmolive Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Colgate-Palmolive Co (BUE:CL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CL:USA CL:Mexico 1CL:Italy CPAd:UK 0P59:UK CPA:Germany CPA:Germany CPA:Germany CPA:Germany COLG34:Brazil COLG:Austria

Address

300 Park Avenue, New York, NY, USA, 10022

Website

https://www.colgatepalmolive.com

Since its founding in 1806, Colgate-Palmolive has grown to become a leading player in the household and personal care arena. In addition to its namesake oral care line (which accounts for more than 40% of its total sales), the firm manufactures shampoos, shower gels, deodorants, and homecare products that are sold in over 200 countries. International sales account for about 70% of its total business, including approximately 45% from emerging regions. It also owns specialty pet food maker Hill's (around one fifth of sales), which primarily sells its products through veterinarians and specialty pet retailers.