Colgate Pamolive

Dollars in Millions Except Per Share Amounts

Consolidated Balance Sheets
As of December 31,
2009
Assets
Current Assets
Cash and cash equivalents $ 600
Receivables (net of allowances of $52 and $47,
respectively) 1,626
Inventories 1,209
Other current assets 375
Total current assets 3,810
Property, plant and equipment, net 3,516
Goodwill, net 2,302
Other intangible assets, net 821
Other assets 685
Total assets $ 11,134
Liabilities and Shareholders’ Equity  
Current Liabilities  
Notes and loans payable $ 35
Current portion of long-term debt 326
Accounts payable 1,172
Accrued income taxes 387
Other accruals 1,679
Total current liabilities 3,599
Long-term debt 2,821
Deferred income taxes 82
Other liabilities 1,375
Total liabilities 7,877
Commitments and contingent liabilities -
Shareholders’ Equity  
Preference Stock 169
Common stock, $1 par value
(2,000,000,000 shares authorized, 732,853,180 shares 733
issued)
 Additional paid-in capital 1,764
Retained earnings 13,157
Accumulated other comprehensive income (loss) (2,096)
13,727
Unearned compensation (133)
Treasury stock, at cost (10,478)
Total Colgate-Palmolive Company
shareholders’ equity 3,116
Noncontrolling interests 141
Total shareholders’ equity 3,257
Total liabilities and shareholder's equity $ 11,134

Dollars in Millions Except Per Share Amounts

Consolidated Statements of Income
For the years ended December 31,
2009
Net sales $ 15,327
Cost of sales 6,319
Gross profit 9,008
Selling, general and administrative expenses 5,282
Other (income) expense, net 111
Operating profit 3,615
Interest expense, net 77
Income before income taxes 3,538
Provision for income taxes 1,141
Net income including noncontrolling interests 2,397
Less: Net income attributable to noncontrolling interests 106
Net income $ 2,291
Earnings per common share, basic $ 4.53
Earnings per common share, diluted $ 4.37

Dollars in Millions
Consolidated Statements of Cash Flows
For the years ended December 31,
2009
Operating Activities
Net income $
2,291
Adjustments to reconcile net income to net
cash provided by operations:  
Restructuring, net of cash (18)
Depreciation and amortization 351
Gain before tax on sale of non-core product lines (5)
Stock-based compensation expense 117
Deferred income taxes (23)
Cash effects of changes in:  
Receivables 57
Inventories 44
Accounts payable and other accruals 294
Other non-current assets and liabilities 169
Net cash provided by 3,277
operations
Investing Activities  
Capital expenditures (575)
Payment for acquisitions, net of cash acquired -
Sale of property and non-core product lines 17
Sales (purchases) of marketable securities and (289)
investments
Other 6
Net cash used in investing (841)
activities
Financing Activities  
Principal payments on debt (3,950)
Proceeds from issuance of debt 3,424
Dividends paid (981)
Purchases of treasury shares (1,063)
Proceeds from exercise of stock options and excess tax 300
benefits
Net cash used in financing (2,270)
activities
Effect of exchange rate changes on Cash and cash equivalents (121)
 Net (decrease) increase in Cash and cash equivalents 45
Cash and cash equivalents at beginning of year 555
Cash and cash equivalents at end of year $
600
Supplemental Cash Flow Information
Income taxes paid $
1,098
Interest paid 98
Principal payments on ESOP debt, guaranteed by
the Company 74

Liquidity Ratio:These are those ratios calculated to measure the ability of the firm
to meet its current or short term obligations.

(1)Current Ratio : This ratio indicates company’s debt paying capaciy . Standard
current ratio is 2:1. Here the current ratio is 1.05 :1 which is calculated as below,

Current Assets
Current Ratio= Current Liabilities
 3810
= 3599 =1.05:1

Profitability Ratio: This ratios tell us whether a business is making profit and if so
whether at an acceptable rate.

(1) Operating Profit Ratio : This ratio gives the relation between sales and
profit. It mesures operational efficiency of the business enterprise.
Operating Profit
(1)Operating Profit Ratio = Net Sales
*100
3615
= 15327 *100 = 23.5%

The operational efficiency =100% - 23.5%

=76.5%

The operating efficiency of the company is 76.5% which is good.

(2) Net Profit Ratio :It’s a indication of the operational efficiency of the
enterprise. Higher the ratio higher is the operational efficiency .
Net Profit
Net Profit Ratio = Net Sales *100

9008
= 15327 *100 = 58.77%

The net profit ratio is very good..

(3) Gross Profit Ratio : This ratio tells us something about the business ability
consistently to control its production costs.
Sales−cost of Goods sold
Gross Profit Ratio = Net Sales
*100

9008
= 15327 *100=58.77%

The gross profit ratio is very good..

Turnover Ratio: They mesure the speed in which assets are converted into cash.

(1)Fixed Assets Turn Over Ratio : This ratio is calculated to measure the adequacy
or the investments in fixed assets.This ratio is very significant for manufacturing
concerns.
Net sales
Fixed Assets Turn Over Ratio = ¿ Assets

15327
= 11134−3810 = 2.09 times

Note:Fixed Asset = Net Block - Capital Work In Progress

This shows that the ratio is satisfactory which shows that the company has done
inadequate investments in fixed assets.

(2)Current Assets Turn Over Ratio : This ratio is calculated to measure the
adequacy or the investments in fixed assets.

Net Sales
(1) Asset Turn Over Ratio= T angible Asset
15327
= 4201 =3.64

Net sales
(2) Current Asset Turnover ratio= Curent Asset

15327
= 3810 = 4.02