FINANCIAL STATEMENT ANALYSIS
Table of Contents
CHAPTER 1: BACKGROUND OF COLGATE
Colgate was founded as a small business which mainly in New York in 1806, Colgate Palmolive (CL) never stops its step on developing and improving its business, at the same time, the exploration of Colgate has ever never stopped as well. Through acquisition and expansion strategies, according to Forbes, Colgate has become the 65th largest company in the world. As a strong multinational company in FMCG (fast moving consuming goods) sector, Colgate offers four main product ranges including oral care, personal care, home care and pet nutrition. Its products are on almost every distributor’s shelves under the recognizable household names like Colgate, Mennen, Palmolive, Speedstick, Ajax, Softlan, Hill’s Pet nutrition. For driving growth in a high rivalry of the personal consume products industry, Colgate Co. focuses on Research & Develop and marketing areas. Not only Colgate is trying to refresh the brand image of itself, but also aims to make the customers to build the behavior to use different series of products which invented by Colgate. As a result, Colgate.Co has achieved the goal to launch business all over the world, until now, in more than 200 countries are using Colgate’s product and Colgate has become the consumer product brand which is trusted by more and more consumers. Regarding financial information, as of December 31 2013, Colgate’s market capitalization is $58.27 billion and the stock current trades for about $63.60 (Google finance, 2013). Meanwhile, in the market, CL has since grown to have sales today surpassing $17 billion worldwide which is mostly derived from the oral care segment. Based the value which shared by ACNielsen (CL 2012, 10-K), Colgate has become one of the top leaders in the world in the oral care industry with having the most well-known toothpaste brands. This reputation will be a “halo”
References: 1. Horngren, C.T., Harrion, W.T., and Oliver, M.S., 2013. Financial and Managerial Accounting. 3rd ed. Prentice Hall. 2. Financials.morningstar.com. 2013. Growth, Profitability, and Financial Ratios for Colgate-Palmolive Company (CL) from Morningstar.com. [online] Available at: http://financials.morningstar.com/ratios/r.html?t=CL [Accessed: 7 Mar 2014]. 3. Colgate-Palmolive Co., 2013. Form 10-K, Annual report 2012. [online] Available at: [Accessed 8 Mar 2014] 4 5. Google.com. 2013. Colgate-Palmolive Company: NYSE:CL quotes & news - Google Finance. [online] Available at: http://www.google.com/finance?q=NYSE%3ACL&ei=rvpsUtGsIITQkgW_Zw [6 Mar 2014]. 6. Stock Analysis on Net. 2013. Colgate-Palmolive Co. (CL) | Valuation Ratios. [online] Available at: http://www.stock-analysis-on.net/NYSE/Company/Colgate-Palmolive-Co/Valuation/Ratios#Historical-Valuation-Ratios-Summary [Accessed: 8 Mar 2014]. 100% Source: Colgate Palmolive Co.’s form 10-K (2013)