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Colgate-Palmolive Co Financial Strength

: 5 (As of Jun. 2022)
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Colgate-Palmolive Co has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Colgate-Palmolive Co's Interest Coverage for the quarter that ended in Jun. 2022 was 28.52. Colgate-Palmolive Co's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.45. As of today, Colgate-Palmolive Co's Altman Z-Score is 6.64.


Competitive Comparison

For the Household & Personal Products subindustry, Colgate-Palmolive Co's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Colgate-Palmolive Co's Financial Strength falls into.



Colgate-Palmolive Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Colgate-Palmolive Co's Interest Expense for the months ended in Jun. 2022 was $-31 Mil. Its Operating Income for the months ended in Jun. 2022 was $884 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $7,957 Mil.

Colgate-Palmolive Co's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*884/-31
=28.52

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Colgate-Palmolive Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(29 + 7957) / 17936
=0.45

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Colgate-Palmolive Co has a Z-score of 6.64, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.64 is strong.

* 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.


Colgate-Palmolive Co  (NYSE:CL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Colgate-Palmolive Co has the Financial Strength Rank of 5.


Colgate-Palmolive Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Colgate-Palmolive Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Colgate-Palmolive Co Business Description

Colgate-Palmolive Co logo
Address
300 Park Avenue, New York, NY, USA, 10022-7499
Since its founding in 1806, Colgate-Palmolive has grown to become a leading global consumer product company. In addition to its namesake oral care line, the firm manufactures shampoos, shower gels, deodorants, and home care products that are sold in over 200 countries (international sales account for about 70% of its consolidated total, including approximately 45% from emerging regions). It also owns specialty pet food maker Hill's, which sells its products through veterinarians and specialty pet retailers.
Executives
Nelson Kimberly A director ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Sutula Stanley J Iii officer: Chief Financial Officer IBM CORPORATION ONE NEW ORCHARD ROAD ARMONK NY 10504
Massey Sally officer: Chief Human Resources Officer 300 PARK AVENUE NEW YORK NY 10022
Hundmejean Martina director C/O TYCO INTERNATIONAL (US) INC 9 WEST 57TH ST 43RD FL. NEW YORK NY 10019
Parameswaran Prabha officer: Grp Pres, Glbl Innov. & AF/Eus 300 PARK AVENUE NEW YORK NY 10022
Skala Justin officer: Exec VP, Chief Gwth&Strtgy Off C/O COLGATE-PALMOLIVE COMPANY 300 PARK AVENUE NEW YORK NY 10022
Huston John J officer: SVP, Chief of Staff C/O COLGATE PALMOLIVE CO 300 PARK AVE 15TH FL NEW YORK NY 10022
Edwards Lisa director C/O SHUTTERSTOCK, INC. 350 FIFTH AVENUE, 21ST FLOOR NEW YORK NY 10118
Shotts Philip G. officer: Vice President and Controller 300 PARK AVENUE NEW YORK NY 10022
Jakobsen Henning I officer: Chief Financial Officer 300 PARK AVENUE NEW YORK NY 10022
Kooyman John W officer: Chief Marketing Officer 300 PARK AVENUE NEW YORK NY 10022
Bancroft Charles A director BRISTOL-MYERS SQUIBB COMPANY ROUTE 206 & PROVINCE LINE ROAD PRINCETON NJ 08543
Harris C Martin director
Daniels Jennifer officer: CLO and Secretary C/O BARNES & NOBLE, INC. 122 FIFTH AVENUE NEW YORK NY 10011
Norrington Lorrie M director C/O EBAY INC. 2145 HAMILTON AVENUE SAN JOSE CA 95125

Colgate-Palmolive Co Headlines

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