Contemporary Business Statistics

Assessment Component – 4

Statistical Analysis of a firm

Colgate-Palmolive Company (Colgate) is a household and consumer products company. The

Company operates through segments such as Oral, Personal and Home Care, and Pet Nutrition. The
Oral, Personal and Home Care product segment is operated through five geographic segments,
which include North and South America, Europe, Asia Pacific Africa/Eurasia, Australia and
Oceania.

The company has been present in India since 1937 when it was first incorporated and over the years
has steadily grown to rival international giants like Procter and Gambler, Hindustan Unilever,
Johnson and Johnson, ITC and many more. As of 2021, the brand has been firmly established in
India and is the most trusted name in the personal care space. With a market cap of Rupees 41,377
crore, the company is a giant in the personal care space. 

Descriptive Analysis: Descriptive analysis is often used to serve the two basic purposes which
involves 1. Providing basic information about different variables from a set of financial/non-
financial data, 2. Helps to understand the relationship between the variables. In this case we
considered the following variables: Sales, Operating Profit, Expenses, Price, Raw Material Cost and
Working Capital.
We observed that the standard deviation is maximum in Operating Profit and the minimum is
observed in raw material cost.

T-TEST ANALYSIS: For 2 Sample-t test we assumed that there will be a significant effect of
expenses over raw material cost. After analysing we observed that the P value is less than 0.05 and
we reject the null hypothesis. Hence we conclude that there is a significant effect of Expenses over
Raw Material Cost.  

Correlation Analysis: After conducting the correlation analysis on all the variables we observed
that, as the raw material cost increases the expenses got increased showing a strong correlation.
While the operational cost decreased when the raw material cost increased, showing least
correlation. 
Regression Analysis: We conducted the regression analysis to find the strength and relationship
between a series of independent variables and a dependent variable. Here the dependent variable is
operating profit and the independent variables are sales, expenses, price, raw material cost, working
capital. After analysing the data we concluded that the variance occurring in the operating cost is
around 10% which does not fall under the range showing least dependency. 

Anova Test: For this test we assumed that there will be a significant effect between two or more
variables when interpreted through Anova. After analysing we observed that the P value is less than
0.05 and we reject the null hypothesis. Hence we conclude that there is a significant effect of one
variable by remaining variables and our assumptions are true. 

Moving Average Method: Moving average method is used to understand the future values of the
variables. In this case we took the sales as the moving variable to forecast the future sales. We
assumed that the average sales would be increasing for every three subsequent years, and observed
the upward trend in the analysis and concluded that the sales would be greater than that of the
previous year sales.

Brand value of the leading personal care brands worldwide in 2020

Colgate-Palmolive is the 2nd most valuable personal care brand behind only the French giant
L’Oréal and comes on top of giants like Procter & Gamble, Unilever, and Beiersdorf. Over the
coming years, the company will continue to invest in eco-friendly practices. Manufacturers will also
respond to demand for more natural products, widening their natural and herbal product lines.
Marketing efforts will likely be increasingly geared to stress environmental protection through non-
toxic ingredients.

Coalgate India Sales 2012 to 2021

The sales turnover of Colgate-Palmolive India Limited amounted to over 4841 crore Indian rupees
in the fiscal year 2021. The company has experienced uninterrupted growth in sales since 2012,
barring the FY 2016 when sales declined by 2.8%. The company is a clear industry leader in the
personal care space. 

Coalgate India expenses 2012 to 2021

Despite a 101.57% rise in sales the company managed to keep its expense increase to only 57%
which when compared to other industry players like Procter and Gamble, Unilever, and Beiersdorf
would be considered a frightfully good performance.  Colgate-Palmolive India Limited reported a
total expenditure of over 33 billion Indian rupees in the fiscal year 2021. There was a seeming
consistency in the expenditure figures released since the fiscal year 2014. 

Coalgate India Operating Profit 2012 to 2021

Since 2012 to 2021 the operating profit of the company has risen by nearly 161%. In the financial
year 2021, Colgate-Palmolive India Limited reported an operating profit of over 1510 crore rupees,
up from about 1201 crore rupees in the previous financial year. With the exception of the fiscal year
2017 and 2020, there was an increasing trend in the operating profits for Colgate-Palmolive India.