Colgate-Palmolive key statistics and ratios
In fiscal 2025, Colgate-Palmolive had an operating margin of 16.2%, debt equal to 14788.9% of equity and a current ratio of 0.83. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.
Financial ratios
| Fiscal year | 2009Dec 2009 | 2010Dec 2010 | 2011Dec 2011 | 2012Dec 2012 | 2013Dec 2013 | 2014Dec 2014 | 2015Dec 2015 | 2016Dec 2016 | 2017Dec 2017 | 2018Dec 2018 | 2019Dec 2019 | 2020Dec 2020 | 2021Dec 2021 | 2022Dec 2022 | 2023Dec 2023 | 2024Dec 2024 | 2025Dec 2025 | LTMSept 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross margin | 58.8% | 59.1% | 57.3% | 58.1% | 58.6% | 58.5% | 58.6% | 60.0% | 60.0% | 59.4% | 59.4% | 60.8% | 59.6% | 57.0% | 58.2% | 60.5% | 60.1% | 60.6% |
| Operating margin | 23.6% | 22.4% | 23.0% | 22.8% | 20.4% | 20.6% | 17.4% | 26.0% | 24.0% | 23.8% | 22.6% | 23.6% | 19.1% | 16.1% | 20.5% | 21.2% | 16.2% | 14.8% |
| Net margin | 14.9% | 14.2% | 14.5% | 14.5% | 12.9% | 12.6% | 8.6% | 16.1% | 13.1% | 15.4% | 15.1% | 16.4% | 12.4% | 9.9% | 11.8% | 14.4% | 10.5% | 9.6% |
| Free-cash-flow margin | 17.6% | 17.1% | 14.1% | 15.4% | 14.5% | 14.7% | 14.1% | 16.8% | 16.2% | 16.9% | 17.8% | 20.1% | 15.8% | 10.4% | 15.6% | 17.6% | 17.8% | 17.8% |
| Return on equity | 73.5% | 76.1% | 96.3% | 108.3% | 99.7% | 126.4% | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on assets | 20.6% | 19.8% | 20.3% | 18.9% | 16.4% | 15.9% | 10.9% | 20.3% | 16.3% | 19.3% | 17.4% | 17.4% | 14.0% | 11.6% | 14.3% | 17.8% | 13.2% | 12.4% |
| Asset turnover | 1.38 | 1.40 | 1.40 | 1.31 | 1.27 | 1.26 | 1.26 | 1.26 | 1.25 | 1.25 | 1.15 | 1.06 | 1.13 | 1.17 | 1.21 | 1.24 | 1.26 | 1.29 |
| Current ratio | 1.06 | 1.00 | 1.18 | 1.22 | 1.08 | 1.23 | 1.24 | 1.31 | 1.36 | 1.14 | 1.03 | 0.98 | 1.09 | 1.28 | 1.11 | 0.92 | 0.83 | 0.96 |
| Debt to equity | 101.0% | 126.2% | 201.1% | 236.5% | 244.9% | 535.5% | — | — | — | — | >999% | 988.3% | >999% | >999% | >999% | >999% | >999% | >999% |
| Interest cover (operating income ÷ interest) | 35.4x | 50.6x | 65.1x | 48.0x | 29.9x | 26.5x | 20.1x | 25.5x | 23.8x | 18.9x | 18.4x | 21.1x | 27.8x | 17.3x | 13.9x | 14.6x | 12.4x | 12.6x |
| Effective tax rate | 32.2% | 32.6% | 32.6% | 32.1% | 32.4% | 33.8% | 44.0% | 30.8% | 37.7% | 26.2% | 23.4% | 21.6% | 24.3% | 26.1% | 27.6% | 22.9% | 26.1% | 26.8% |
| R&D as % of revenue | 1.7% | 1.6% | 1.6% | 1.5% | 1.5% | 1.6% | 1.7% | 1.9% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | — |
| SG&A as % of revenue | 34.5% | 34.8% | 34.4% | 34.7% | 35.7% | 34.6% | 34.1% | 33.8% | 34.9% | 34.7% | 35.5% | 36.5% | 36.8% | 36.5% | 36.8% | 38.5% | 38.8% | 39.4% |
| Capital spending as % of revenue | 3.8% | 3.5% | 3.2% | 3.3% | 3.8% | 4.4% | 4.3% | 3.9% | 3.6% | 2.8% | 2.1% | 2.5% | 3.3% | 3.9% | 3.6% | 2.8% | 2.8% | 2.7% |
| Free cash flow ÷ net income | 117.9% | 120.8% | 97.0% | 106.4% | 113.1% | 116.6% | 163.2% | 104.4% | 123.6% | 109.2% | 118.2% | 122.8% | 127.3% | 104.2% | 132.2% | 122.7% | 170.5% | 184.6% |
| Dividends ÷ net income | 42.8% | 51.8% | 49.5% | 51.7% | 61.7% | 66.3% | 107.9% | 61.8% | 75.5% | 66.3% | 68.2% | 61.4% | 77.5% | 94.7% | 76.0% | 61.9% | 85.5% | 89.2% |
| Dividends and buybacks ÷ free cash flow | 75.6% | 118.8% | 127.6% | 122.4% | 114.6% | 117.1% | 134.8% | 111.6% | 117.1% | 108.0% | 100.6% | 94.6% | 108.7% | 161.2% | 94.6% | 99.5% | 83.5% | 83.5% |
| Quarter | 2024 Q4Dec 2024 | 2025 Q1Mar 2025 | 2025 Q2Jun 2025 | 2025 Q3Sept 2025 | 2025 Q4Dec 2025 | 2026 Q1Mar 2026 | 2026 Q2Jun 2026 | 2026 Q3Sept 2026 |
|---|---|---|---|---|---|---|---|---|
| Gross margin | 60.3% | 60.8% | 60.1% | 59.4% | 60.2% | 60.6% | 61.5% | 60.2% |
| Operating margin | 21.5% | 21.9% | 21.1% | 20.6% | 1.8% | 18.1% | 19.0% | 20.3% |
| Net margin | 14.9% | 14.1% | 14.5% | 14.3% | −0.7% | 12.1% | 12.9% | 14.0% |
| Free-cash-flow margin | 21.9% | 9.7% | 15.2% | 21.6% | 24.4% | 11.4% | 16.2% | 19.3% |
| Current ratio | 0.92 | 0.85 | 0.89 | 0.93 | 0.83 | 1.02 | 1.03 | 0.96 |
| Debt to equity | >999% | >999% | >999% | 853.5% | >999% | >999% | >999% | >999% |
| SG&A as % of revenue | 38.3% | 38.6% | 38.4% | 38.4% | 39.6% | 39.0% | 39.7% | 39.3% |
Financial health
- Short-term assets cover short-term liabilities $6.4bn of assets due within a year against $6.6bn of liabilities due within a year.
- Short-term assets cover long-term liabilities $6.4bn short-term assets against $9.5bn of longer-dated liabilities.
- More cash than debt $1.5bn of cash against $7.2bn of debt.
- Debt below 40% of shareholders' equity Debt is 2494% of equity.
- Debt burden no higher than five years ago Debt to equity moved from 2364% to 2494% over five years.
- A year's operating cash flow covers at least 20% of debt $4.4bn of operating cash flow against $7.2bn of debt.
- Operating profit covers interest at least five times over Operating income of $3.2bn against $250m of interest.
Moat
Strong moat
How hard Colgate-Palmolive's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
- Returns on capital 20 / 20
Cash operating profit has been a median 25.7% of total assets over 10 years.
- Pricing power 20 / 20
Gross margin has been a median 60.2%, moving by 1.1 percentage points (standard deviation) across 10 years.
- Durability 16 / 20
Operating margin has been a median 22.0%; its worst year was 14.8%.
- Cash conversion 18 / 20
Free cash flow was positive in 10 of 10 years, at a median 16.8% of revenue.
- Discipline 19 / 20
The diluted share count fell 5.7% over five years; stock-based pay has been a median 0.7% of revenue.
AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (93 before it).
Compare with peers
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