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FANACIAL STATEMENT ANALYSIS &

VALUATION
PRESENTATION ON - ACTIVITY ANALYSIS

PREPARED BY- GAYATRIBA .R .GOHIL


GUIDED BY- Dr. VEDANT PANDYA
SEM-4
DEPARTMENT OF BUSINESS ADMINISTRATION
MAHARAJA KRISHNAKUMARSINHJI BHAVNAGAR UNIVERSITY
Components of Cost
Types of Activity Ratios
Colgate-Palmolive

• Colgate-Palmolive Company is an American worldwide consumer


products company focused on the production, distribution and
provision of household, health care and personal care products.
Industry Consumer goods
Founded 1806; 213 years ago
Founder William Colgate
Headquarters 300 Park Avenue
New York, NY, United States
Area served Worldwide
Key people Ian M.
Cook (Chairman& CEO)
SHORT TERM ACTIVITY ANALYSIS
INVENTORY TURNOVER RATIO

• Inventory turnover = Cost of sales ÷ Avg. Inventories


= 6,313 ÷ 1,250

= 5.05
INVENTORY TURNOVER RATIO
RECEIVABLES TURNOVER RATIO

• Receivables turnover = Net credit sales ÷ Receivables, net of allowances


= 15,544 ÷ 1,400

= 11.10
RECEIVABLES TURNOVER RATIO
PAYABLES TURNOVER RATIO

• Payables turnover = Cost of sales ÷ Accounts payable


= 6,313 ÷ 1,222

= 5.17
PAYABLES TURNOVER RATIO
WORKING CAPITAL TURNOVER RATIO

• Working capital turnover = Net sales ÷ Working capital


= 15,544 ÷ 452

= 34.39
WORKING CAPITAL TURNOVER RATIO
AVERAGE INVENTORY PROCESSING
PERIOD
• Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.05

= 72
AVERAGE INVENTORY PROCESSING
PERIOD
AVG. RECEIVABLE COLLECTION
PERIOD
• Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.10

= 33
AVG. RECEIVABLE COLLECTION
PERIOD
LONG TERM ACTIVITY ANALYSIS
NET FIXED ASSET TURNOVER RATIO

• Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 15,544 ÷ 3,881

= 4.01
NET FIXED ASSET TURNOVER RATIO
TOTAL ASSET TURNOVER RATIO

• Total asset turnover = Net sales ÷ Total assets


= 15,544 ÷ 12,161

= 1.28
TOTAL ASSET TURNOVER RATIO
EQUITY TURNOVER RATIO

• Equity turnover = Net sales ÷ Total Colgate-Palmolive Company shareholders’ equity


= 15,544 ÷ -102 = –
EQUITY TURNOVER RATIO
REFERENCES

• https://www.stock-analysis-on.net/NYSE/Company/Colgate-Palmolive-
Co/Ratios/Long-term-Investment-Activity
• https://en.wikipedia.org/wiki/Colgate-Palmolive
• www.google.com