FUNDAMENTAL OF BUSINESS AND FINANACE

TITLE
ASSIGNMENT#2

SUBMITTED BY
AFAQ BHUTTA BSEM-F18-218
SUBMITTED TO
MAAM RABIA
DATE OF SUBMISSION
12 APRILL 2021
 COLGATE-PALMOLIVE CO.
SUMMARY
Name: Colgate-Palmolive Co.
Trading symbol: CL
Stock exchange: New York Stock Exchange (NYSE)
No. shares of common stock outstanding: 848,562,678
Industry: Consumer Goods
Sector: Personal Goods
Country: United States

The Colgate-Palmolive Company is an American multinational consumer products company focused on

the manufacturing process, distribution and provision of household, health care and personal products,
such as detergents, soaps and oral hygiene products which include toothpaste and toothbrushes in
United States and in more than 200 other countries and territories world-wide. Colgate-Palmolive is a
leading global consumer products company, firmly focused on Oral Care, Personal Care, Home Care and
Pet Nutrition. As a company that strives to be the best truly global consumer products company,
Colgate-Palmolive are committed to run their business with integrity and respect for all people and for
all the world around them. Colgate-Palmolive also aim to give the world reasons to smile. Colgate have
three fundamental values for their business strategy and are reflected in every aspects of their work life.
The first fundamental value is caring. The company cares for everyone such as Colgate people,
consumers, shareholders and business partners. Colgate is committed to act with integrity, sincerity,
compassion and high ethics in all situations, to listen with respect to others and to value differences.
Secondly, the company also emphasized global teamwork as their fundamental value. All Colgate people
are part of a global team, they committed to work together across countries and throughout the world.
By sharing together ideas, technologies and talents, it ensures that the company achieve a sustainable
profitable growth. Last but not least, the company always strives for continuous improvement as they
committed to getting better every day in all it does, either in individual or as teams. Colgate trying to
become the best by better understanding consumers’ and customers’ expectations and then
continuously working to innovate and improve products, services and processes.

INTRODUCTION

Colgate-Palmolive Co was incorporated under the laws of the State of Delaware on July 25,
1923. It is a consumer products company. Its products are marketed in over 200 countries and
territories throughout the world. The Company operates in two product segments: Oral, Personal and
Home Care; and Pet Nutrition. Colgate is engaged in Oral Care with the toothpaste and manual
toothbrush brands. Colgate's Oral Care products include Colgate Total, Colgate Sensitive Pro-Relief,
Colgate Max Fresh, Colgate Optic White and Colgate Luminous White toothpastes, Colgate 360° and
Colgate Slim Soft manual toothbrushes and Colgate Optic White, Colgate Total and Colgate Plax
mouthwash. Colgate's Oral Care business also includes dental floss and pharmaceutical products for
dentists and other oral health professionals. Colgate also has product categories of the Personal Care
market in liquid hand soap, which it sells under the Palmolive, Protex and Soft-soap brands.
SWOT Analysis of Colgate-Palmolive:
Information on the Financial Statements and Public Disclosures:

Colgate-Palmolive Co. prepares its financial statements in accordance with US GAAP and uses a fiscal
year starting January 1 and ending December 31 st. The company’s principle classes of products
accounted for the following percentages of worldwide Net Sales for the past three years:

Income Statement
Dollars in Millions Except Per Share Amounts
Consolidated Statements of Income
For the years ended December 31,

2020 2019 2018

$ $ $
Net sales 16,471 15,693 15,544
Cost of sales 6,454 6,368 6,313
Gross profit 10,017 9,325 9,231

Selling, general and administrative expenses 6,019 5,575 5,389

Other (income) expense, net 113 196 148
Operating profit 3,885 3,554 3,694
Non-service related postretirement costs 74 108 87
Interest (income) expense, net 164 145 143
Income before income taxes 3,647 3,301 3,464

Provision for income taxes 787 774 906

Net income including noncontrolling interests 2,860 2,527 2,558

Less: Net income attributable to noncontrolling interests 165 160 158

Net income attributable to Colgate-Palmolive $ $ $
Company 2,695 2,367 2,400

$ $ $
Earnings per common share, basic 3.15 2.76 2.76

$ $ $
Earnings per common share, diluted 3.14 2.75 2.75

See Notes to Consolidated Financial Statements.

Balance Sheet
Dollars in Millions Except Share and Per Share Amounts

Consolidated Balance Sheets

As of December 31,

2020 2019
Assets
Current Assets
Cash and cash equivalents $ $
888 883
Receivables (net of allowances of $89 and $76,
respectively)
1,264 1,440
Inventories
1,673 1,400
Other current assets 513 456
Total current assets 4,338 4,179

Property, plant and equipment, net

3,716 3,750
Goodwill
3,824 3,508
Other intangible assets, net
2,894 2,667
Deferred income taxes 291 177
Other assets 857 753
Total assets $ $
 15,920 15,034

Liabilities and Shareholders’ Equity

Current Liabilities
Notes and loans payable $ $
258 260
Current portion of long-term debt 25
9 4
Accounts payable 1,393 1,237
Accrued income taxes 403 370
Other accruals 2,341 1,917
Total current liabilities 4,404 4,038

Long-term debt 7,334 7,333

Deferred income taxes 426 507
Other liabilities 2,655 2,598
Total liabilities 14,819 14,476

Commitments and contingent liabilities - -

Shareholders’ Equity
Common stock, $1 par value
(2,000,000,000 shares authorized, 1,465,706,360 shares 1,466 1,466
issued)
Additional paid-in capital 2,969 2,488
Retained earnings 23,699 22,501
Accumulated other comprehensive income (loss) (4,345) (4,273)
Unearned compensation (1) (2)
Treasury stock, at cost (23,045) (22,063)
Total Colgate-Palmolive Company shareholders’ equity 743 117
Noncontrolling interests 358 441
Total equity 1,101 558
Total liabilities and equity $ $
15,920 15,034

See Notes to Consolidated Financial Statements.

Dollars in Millions
Consolidated Statements of Changes in Shareholders' Equity
Colgate-Palmolive Company Shareholders
Additiona
l
Commo Paid-In Unearned
n Treasury Ret
Capital Compensatio
Stock n Stock Ear

Balance, January 1, 2018 $ $

$ 1,466 $ 1,984 $ (5)
(20,181) 20,5
Net income

Other comprehensive income (loss), net of

tax
Dividends ($1.66)/per share*

Stock-based compensation expense 109

Shares issued for stock options 19
137 0
Shares issued for restricted stock awards (31) 31
Treasury stock acquired (1,23
8)
Other
5 2 2
Balance, December 31, 2018 $ $
$ 1,466 $ 2,204 $ (3)
(21,196) 21,6
Net income

Other comprehensive income (loss), net of

tax
Dividends ($1.71)/per share*

Stock-based compensation expense 100

Shares issued for stock options 210 305
Shares issued for restricted stock awards (29) 29
Noncontrolling interests assumed through
acquisition
Treasury stock acquired (1,20
2)
Other
3 1 1
Balance, December 31, 2019 $ $
$ 1,466 $ 2,488 $ (2)
(22,063) 22,5
Net income

Other comprehensive income (loss), net of

tax
Dividends ($1.75)/per share*
 Stock-based compensation expense 107
Shares issued for stock options 46
400 2
Shares issued for restricted stock awards (31) 31
Noncontrolling interests acquired
Treasury stock acquired (1,47
6)
Other 5 1 1
Balance, December 31, 2020 $ $
$ 1,466 $ 2,969 $ (1)
(23,045) 23,6

(1 As a result of the early adoption of ASU 2018-02, the Company reclassified the stranded tax effects in Accumulated
) the Tax Cuts and Jobs Act to Retained earnings.

* Two dividends were declared in each of the first quarters of 2020, 2019 and 2018.
Share Holder Equity