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Financial Model - Colgate Palmolive (Solved) : Prepared by Dheeraj Vaidya, CFA, FRM
Financial Model - Colgate Palmolive (Solved) : Prepared by Dheeraj Vaidya, CFA, FRM
Financial Model - Colgate Palmolive (Solved) : Prepared by Dheeraj Vaidya, CFA, FRM
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olive (solved)
Colgate-Palmolive Company
Income Statement (Consolidated)
($ in Million Except Per Share Amounts)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other (income) expense, net
EBIT
Interest expense, net
EBT
Provision for income taxes
Net income including noncontrolling interests
Less: Net income attributable to noncontrolling interests
Net income attributable to Colgate-Palmolive Company
Earnings per common share, basic
Earnings per common share, diluted
Basic Weighted Average Shares
Diluted Weighted Average Shares
EBITDA
Vertical Analysis
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other (income) expense, net
Operating profit
Interest expense, net
Income before income taxes
Provision for income taxes
Net income including noncontrolling interests
Less: Net income attributable to noncontrolling interests (% of Net Income)
Net income attributable to Colgate-Palmolive Company
Effective Tax Rates
Horizontal Analysis
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other (income) expense, net
Operating profit
Interest expense, net
Income before income taxes
Provision for income taxes
Net income including noncontrolling interests
Less: Net income attributable to noncontrolling interests
Net income attributable to Colgate-Palmolive Company
Segmental Information
Pet Nutrition
% growth (yoy)
Total Net sales
Dec-10
15,564
6,360
9,204
Dec-11
16,734
7,144
9,590
Dec-12
17,085
7,153
9,932
Dec-13
17,420 $
7,219
10,201
Dec-14
17,780 $
7,379
10,401
Dec-15
18,146
7,531
10,616
5,414
301
3,489
59
5,758
(9)
3,841
52
5,930
113
3,889
15
6,223
422
3,556
(9)
6,223
444
3,734
(83)
6,351
454
3,811
(83)
3,430
1,117
2,313
110
2,203
2.23
2.16
3,789
1,235
2,554
123
2,431
2.49
2.47
3,874
1,243
2,631
159
2,472
2.60
2.57
3,565
1,155
2,410
169
2,241
2.41
2.38
3,816
1,240
2,576
180
2,396
2.62
2.61
3,894
1,265
2,628
184
2,444
2.76
2.71
976.7
984.1
952.1
960.2
930.8
939.9
913.8
918.9
884.7
901.3
4,179
4,290
Dec-10
100.0%
40.9%
59.1%
Dec-11
100.0%
42.7%
57.3%
Dec-12
100.0%
41.9%
58.1%
Dec-13
100.0%
41.4%
58.6%
Dec-14
100.0%
41.5%
58.5%
Dec-15
100.0%
41.5%
58.5%
34.8%
1.9%
22.4%
0.4%
34.4%
-0.1%
23.0%
0.3%
34.7%
0.7%
22.8%
0.1%
35.7%
2.4%
20.4%
-0.1%
35%
2.5%
21.0%
35%
2.5%
21.0%
22.0%
7.2%
14.9%
4.8%
14.2%
22.6%
7.4%
15.3%
4.8%
14.5%
22.7%
7.3%
15.4%
6.0%
14.5%
20.5%
6.6%
13.8%
7.0%
12.9%
21.5%
7.0%
14.5%
7.0%
13.5%
21.5%
7.0%
14.5%
7.0%
13.5%
32.6%
32.6%
32.1%
32.4%
32.5%
32.5%
Dec-10
1.5%
0.6%
2.2%
Dec-11
7.5%
12.3%
4.2%
Dec-12
2.1%
0.1%
3.6%
Dec-13
2.0%
0.9%
2.7%
Dec-14
2.1%
2.2%
2.0%
Dec-15
2.1%
2.1%
2.1%
2.5%
171.2%
-3.5%
-23.4%
6.4%
-103.0%
10.1%
-11.9%
3.0%
-1355.6%
1.2%
-71.2%
4.9%
273.5%
-8.6%
-160.0%
0.0%
5.3%
5.0%
818.0%
2.1%
2.1%
2.1%
0.4%
-3.1%
-2.1%
-3.5%
3.8%
-3.8%
10.5%
10.6%
10.4%
11.8%
10.3%
2.2%
0.6%
3.0%
29.3%
1.7%
-8.0%
-7.1%
-8.4%
6.3%
-9.3%
7.0%
7.4%
6.9%
6.7%
6.9%
2.0%
2.0%
2.0%
2.0%
2.0%
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
3,072
3.4%
5,012
-0.4%
3,396
-0.6%
2,472
9.2%
1,257
1.3%
15,209
1.9%
3,195
4.0%
5,062
1.0%
3,430
1.0%
2,719
10.0%
1,276
1.5%
15,513
2.0%
3,323
4.0%
5,113
1.0%
3,464
1.0%
2,991
10.0%
1,295
1.5%
15,824
2.0%
2,160
-0.6%
2,211
2.4%
2,266
2.5%
2,323
2.5%
17,085 $
17,420 $
17,780 $
2,878 $
4,895
3,508
2,074
1,207
14,562
2,172
16,734 $
2,971 $
3.2%
5,032
2.8%
3,417
-2.6%
2,264
9.2%
1,241
2.8%
14,925
2.5%
18,146
Dec-16
18,521 $
7,686
10,835
Dec-17
18,903 $
7,845
11,058
Dec-18
19,294
8,007
11,287
6,482
463
3,889
(80)
6,616
473
3,970
(89)
6,753
482
4,052
(87)
3,970
1,290
2,679
188
2,492
2.91
2.85
4,059
1,319
2,740
192
2,548
3.07
3.01
4,138
1,345
2,793
196
2,598
3.22
3.17
857.0
872.9
830.8
845.9
805.9
820.4
4,404
4,520
4,639
Dec-16
100.0%
41.5%
58.5%
Dec-17
100.0%
41.5%
58.5%
Dec-18
100.0%
41.5%
58.5%
35%
2.5%
21.0%
35%
2.5%
21.0%
35%
2.5%
21.0%
21.4%
7.0%
14.5%
7.0%
13.5%
21.5%
7.0%
14.5%
7.0%
13.5%
21.4%
7.0%
14.5%
7.0%
13.5%
32.5%
32.5%
32.5%
Dec-16
2.1%
2.1%
2.1%
Dec-17
2.1%
2.1%
2.1%
Dec-18
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
-3.4%
2.1%
2.1%
2.1%
11.1%
2.1%
2.1%
2.1%
-2.8%
1.9%
1.9%
1.9%
1.9%
1.9%
2.2%
2.2%
2.2%
2.2%
2.2%
2.0%
2.0%
2.0%
2.0%
2.0%
Dec-16
Dec-17
Dec-18
3,456
4.0%
5,164
1.0%
3,499
1.0%
3,290
10.0%
1,314
1.5%
16,140
2.0%
3,594
4.0%
5,216
1.0%
3,534
1.0%
3,619
10.0%
1,334
1.5%
16,463
2.0%
3,738
4.0%
5,268
1.0%
3,569
1.0%
3,981
10.0%
1,354
1.5%
16,792
2.0%
2,381
2.5%
2,441
2.5%
2,502
2.5%
18,521 $
18,903 $
19,294
Colgate-Palmolive Company
Consolidated Balance Sheets
Assets
Current Assets
Cash and cash equivalents
Receivables
Inventories
Other current assets
Total current assets
Property, plant and equipment, net
Total assets
Liabilities and Shareholders' Equity
Current Liabilities
Total current liabilities
Dec-10
Dec-11
490
1,610
1,222
408
3,730
878
1,675
1,327
522
4,402
3,693
11,172
3,668
12,724
3,728
3,716
2,815
108
1,704
8,355
-
4,430
252
1,785
10,183
-
2,675
142
2,817
2,375
166
2,541
11,172
12,724
Revolver
Long-term debt
Deferred income taxes
Other liabilities
Total liabilities
Commitments and contingent liabilities
Shareholders' Equity
Total Colgate-Palmolive Company
shareholders' equity
Noncontrolling interests
Total shareholders' equity
Total liabilities and shareholders'
equity
Check
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
884
1,668
1,365
639
4,556
962
1,636
1,425
799
4,822
514
1,705
1,415
800
4,434
500
1,740
1,444
817
4,501
500
1,776
1,474
833
4,584
3,842
13,394
4,083
13,876
4,378
13,754
4,654
14,067
4,909
14,376
3,736
4,470
4,067
3,911
4,395
940
1,619
4,926
293
2,049
11,004
4,749
444
1,677
11,340
4,258
444
1,677
10,446
4,003
444
1,677
10,975
3,339
444
1,677
11,475
2,189
201
2,390
2,305
231
2,536
2,897
411
3,309
2,497
595
3,093
2,119
783
2,902
13,394
13,876
13,754
14,067
14,376
Dec-17
Dec-18
500
1,813
1,505
851
4,668
500
1,850
1,536
868
4,754
5,143
14,666
5,357
14,937
4,503
4,587
2,658
3,681
2,644
444
1,677
11,926
1,944
444
1,677
12,333
1,765
975
2,740
1,434
1,170
2,604
14,666
14,937
Colgate-Palmolive Company
Consolidated Cash Flows
###
Operating Activities
Net income including noncontrolling interests
Adjustments to reconcile net income
Depreciation and amortization
Receivables
Inventories
Accounts payable and other accruals
Other non-current assets and liabilities
Net cash provided by operations
Dec-08
Dec-09
Dec-10
$
Investing Activities
Capital expenditures
Net cash used in investing activities
Cash Flow for Financing Activities
Financing Activities
Principal payments on debt
Proceeds from issuance of debt
Revolver
Dividends paid
Purchases of treasury shares
Proceeds from exercise of stock options and excess tax benefits
Net cash used in financing activities
2,313
Dec-11
$
Dec-16
Dec-17
Dec-18
2,628 $
2,679 $
2,740 $
2,793
376
40
(10)
(65)
135
3,211
421
(130)
(130)
199
54
2,896
425
19
(21)
(5)
30
3,196
439
(37)
(97)
24
13
3,204
445
(69)
10
(19)
18
2,962
479
(35)
(29)
75
(11)
3,107
515
(36)
(30)
70
(11)
3,187
550
(37)
(30)
71
(12)
3,283
587
(37)
(31)
73
(12)
3,373
(550)
(658)
(537)
(1,213)
(565)
(865)
(670)
(890)
(711)
(711)
(726)
(726)
(741)
(741)
(756)
(756)
(772)
(772)
2,553
1,683
2,331
2,314
2,251
2,382
2,446
2,526
2,601
(4,719)
5,015
(4,429)
5,843
(5,011)
5,452
(7,554)
7,976
(895)
(491)
(255)
(664)
(695)
0
(1,318)
(1,500)
1,014.3
(2,698)
940
(1,344)
(1,500)
(2,396)
680
(1,371)
(1,500)
(2,446)
1,039
(1,401)
(1,500)
(2,526)
1,023
(1,429)
(1,500)
(2,601)
(1,203)
(1,806)
353
(1,242)
(1,277)
(1,943)
478
(2,301)
(1,382)
(1,521)
339
(2,142)
(94)
(39)
(53)
(24)
388
600
490 $
490
878 $
878
884 $
1,123 $
70
1,007 $
58
1,280 $
77
78
884
962 $
Dec-15
2,576 $
(110)
Dec-14
2,410 $
Dec-13
2,631 $
(1,142)
(2,020)
242
(2,624)
Dec-12
2,554 $
1,087
118
(448)
962
514 $
(14)
514
500 $
500
500 $
500
500 $
0
500
500
Colgate-Palmolive Company
Consolidated Depreciation and Capex
Net Sales
Capital Expenditures
Capital Expenditures as % of Net Sales
Beginning Net PP&E
Capital Expenditures
(Depreciation Expense)
Ending Net PP&E
Dec-07
13,790
Dec-08
15,330
Dec-09
15,327
3,015
3,119
3,516
Dec-10
15,564
550
3.5%
3,693
Dec-11
16,734
537
3.2%
3,668
Dec-12
17,085
565
3.3%
3,842
Dec-13
17,420
670
3.8%
Dec-14
17,780
711
4.0%
Dec-15
18,146
726
4.0%
Dec-16
18,521
741
4.0%
4,083
4,083.0
711.2
(416.0)
4,378.1
4,378.1
725.9
(450.5)
4,653.5
4,653.5
740.8
(485.6)
4,908.8
416.0
450.5
485.6
Dec-17
18,903
756
4.0%
Dec-18
19,294
772
4.0%
4,908.8
756.1
(521.4)
5,143.5
5,143.5
771.7
(558.0)
5,357.2
521.4
558.0
Colgate-Palmolive Company
Consolidated Amortization & Intangible
Net Sales
Additions to Intangibles
Additions to Intangibles as % of Net Sales
Beginning Net Intangibles
Additions to Intangibles
(Amortization Expense)
(Intangible Sales and write offs)
Ending Net Intangibles
Dec-07
13,790
Dec-08
15,330
Dec-09
15,327
Dec-10
15,564
Dec-11
16,734
Dec-12
17,085
Dec-13
17,420
1,496.0
Dec-14
17,780
Dec-15
18,146
Dec-16
18,521
Dec-17
18,903
1,496.0
(29.0)
1,467.0
###
1,438.0
(29.0)
1,409.0
(29.0)
1,467.0
1,438.0
1,409.0
1,380.0
Dec-18
19,294
1,380.0
(29.0)
1,351.0
Colgate-Palmolive Company
Consolidated Working Capital
Dec-09
15,327
6,319
Dec-10
15,564
6,360
1,626
1,209
375
3,210
1,610
1,222
408
3,240
Accounts payable
Accrued income taxes
Other accruals
Total Non-Debt Current Liabilities
1,172
387
1,679
3,238
1,165
272
1,682
3,119
(28)
121
429
(149)
6,331
6,373
39
70
2.4%
38
70
2.6%
68
6.1%
26.6%
67
4.3%
26.4%
(34)
(12)
(9)
111
115
258
429
16
(13)
(33)
(7)
(115)
3
(149)
Net Sales
Cost of Sales
Purchases
Ratios & Assumptions
Accounts Receivable, net (Collection period in days)
Inventory (Days outstanding)
Other Current Assets (% of Net Sales)
Accounts Payable (Days Payable)
Accrued Income Taxes (% of COGS)
Other accruals (% of COGS)
Cash Flow from Individual line items
Receivables (net of allowances of $49, $53, $52, $47 and $51 respe
Inventories
Other current assets
Accounts payable
Accrued income taxes
Other accruals
(Incease)/ Decrease in Working Capital
Check
Dec-11
16,734
7,144
Dec-12
17,085
7,153
Dec-13
17,420
7,219
Dec-14
17,780
7,379
Dec-15
18,146
7,531
Dec-16
18,521
7,686
Dec-17
18,903
7,845
1,675
1,327
522
3,524
1,668
1,365
639
3,672
1,636
1,425
799
3,860
1,705
1,415
800
3,920
1,740
1,444
817
4,001
1,776
1,474
833
4,084
1,813
1,505
851
4,168
1,244
392
1,700
3,336
1,290
254
1,888
3,432
1,343
239
1,980
3,562
1,312
258
1,992
3,563
1,346
264
2,033
3,643
1,374
269
2,075
3,718
1,402
275
2,118
3,795
188
240
298
357
358
365
373
(67)
(52)
(58)
(59)
(0)
(7)
(8)
7,249
7,191
7,279
7,369
7,560
7,716
7,875
37
68
3.1%
36
70
3.7%
34
72
4.6%
35
70
4.5%
35
70
4.5%
35
70
4.5%
35
70
4.5%
63
5.5%
23.8%
65
3.6%
26.4%
67
3.3%
27.4%
65
3.5%
27.0%
65
3.5%
27.0%
65
3.5%
27.0%
65
3.5%
27.0%
(65)
(105)
(114)
79
120
18
(67)
7
(38)
(117)
46
(138)
188
(52)
32
(60)
(160)
53
(15)
92
(58)
(69)
10
(1)
(31)
19
12
(59)
(35)
(29)
(17)
34
5
41
(0)
(36)
(30)
(17)
28
5
42
(7)
(37)
(30)
(17)
28
6
43
(8)
Dec-18
19,294
8,007
1,850
1,536
868
4,254
1,431
280
2,162
3,874
380
(8)
8,038
35
70
4.5%
65
3.5%
27.0%
(37)
(31)
(18)
29
6
44
(8)
Number of
365
Colgate-Palmolive Company
Other Long Term Asset Liability Schedule
Dec-10
Dec-11
Assets
Deferred income taxes
Other assets
84.0
472.0
115.0
541.0
Liability
Deferred income taxes
Other liabilities
108.0
1,704.0
252.0
1,785.0
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
92.0
905.0
77.0
924.0
77.0
924.0
77.0
924.0
77.0
924.0
77.0
924.0
77.0
924.0
293.0
2,049.0
444.0
1,677.0
444.0
1,677.0
444.0
1,677.0
444.0
1,677.0
444.0
1,677.0
444.0
1,677.0
Colgate-Palmolive Company
Consolidated Shareholder's Equity
Beginning Equity Balance
Net Income
Issuance/ (Repurchase) of Equity
Dividends Paid
Option Proceeds
Ending Equity Balance
Share Repurchase Assumptions
Current Year EPS
Assumed Current Year EPS Multiple
Implied Share Price
Shares Repurchased - millions
Amount Repurchased ( $ outgo)
New Shares from Exercised Options
New Shares from Exercised Options - millions
Average Strike Price
Option Proceeds
Restricted Stock Units (RSUs)
Dividend Assumptions
Total Dividends Paid
Net Income
Dividend Payout Ratio
Dec-10
Dec-11
2,675
2,375
2.16
2,020
2.47
17.1x
42
42.642
1,806
242
11.5
30.6
353
1.46
1,203.0
2,431
49.5%
Dec-12
Dec-13
2,305
Dec-14
2,305
2,396
(1,500)
(1,318)
1,014
2,897
Dec-15
2,897
2,444
(1,500)
(1,344)
2,497
Dec-16
2,497
2,492
(1,500)
(1,371)
2,119
Dec-17
2,119
2,548
(1,500)
(1,401)
1,765
Dec-18
1,765
2,598
(1,500)
(1,429)
1,434
2,189
2.57
19.5x
50
38.731
1,943
2.38
25.0x
59
25.573
1,521
2.61
19.0x
50
30.283
1,500
2.71
19.0x
52
29.111
###
2.85
19.0x
54
27.654
1,500
3.01
19.0x
57
26.212
1,500
3.17
19.0x
60
24.932
1,500
12.2
39.1
478
7.9
43.0
339
24.2
42.0
1,014.3
2.21
1.91
2.06
2.06
2.00
2.00
2.00
1,277.0
2,472
51.7%
1,382.0
2,241
61.7%
1,318
2,396
55.0%
1,344
2,444
55.0%
1,371
2,492
55.0%
1,401
2,548
55.0%
1,429
2,598
55.0%
Colgate-Palmolive Company
Consolidated Shares Outstanding
Dec-10
Beginning Balance - Basic (actual)
Shares Issued (actual realization of options)
Shares Repurchased
Ending Balance - Basic (actual)
Basic Weighted Average Shares
Effects of Options & Restricted Stock Units
Diluted Weighted Average Shares
989.7
Dec-11
989.7
13.0
(42.6)
960.0
976.7
7.4
984.1
Dec-12
960.0
14.4
(38.7)
935.7
Dec-13
935.7
9.8
(25.6)
919.9
Dec-14
919.9
24.2
(30.3)
913.8
Dec-15
913.8
Dec-16
884.7
Dec-17
857.0
Dec-18
830.8
(29.1)
884.7
(27.7)
857.0
(26.2)
830.8
(24.9)
805.9
952.1
8.1
960.2
930.8
9.1
939.9
916.9
2.1
918.9
899.3
2.1
901.3
870.9
2.0
872.9
843.9
2.0
845.9
818.4
2.0
820.4
Colgate-Palmolive Company
Debt Schedule
Dec-10
Cash Flow Available for Financing Activities
Proceeds from/ (Repurchase of) Equity
Dividends
Option Proceeds
+ Beginning Cash Balance
- Minimum Cash Balance
Cash Available for Debt Repayment
Long Term Debt Issuance
Long Term Debt (Repayments)
Cash Available for Revolving Credit Facility
Revolving Credit Facility
Beginning Balance
Discretionary (Paydown)/ Borrowings
Ending Balance
Long Term Debt
Beginning Balance
Issuance
(Repayment/ Amortization)
Ending Balance
Long Term Debt
Current Portion of Long Term Debt
Average Balance
Interest Rate
Interest Expense
Average Balance
Interest Rate
Interest Expense
Dec-11
Dec-12
Cash Balances
Average Balance
Interest Rate
Interest Income
Dec-13
5,644.0
Dec-14
2,250.5
(1,500.0)
(1,317.6)
1,014.3
962.0
(500.0)
909.2
(895.0)
14.2
Dec-15
2,381.5
(1,500.0)
(1,344.4)
514.2
(500.0)
(448.6)
(491.0)
(939.6)
Dec-16
2,445.9
(1,500.0)
(1,370.6)
500.0
(500.0)
(424.7)
(255.0)
(679.7)
Dec-17
2,526.5
(1,500.0)
(1,401.3)
500.0
(500.0)
(374.9)
(664.0)
(1,038.9)
Dec-18
2,600.9
(1,500.0)
(1,428.8)
500.0
(500.0)
(327.9)
(695.0)
(1,022.9)
939.6
939.6
939.6
679.7
1,619.3
1,619.3
1,038.9
2,658.2
2,658.2
1,022.9
3,681.1
5,644.0
4,749.0
4,258.0
4,003.0
3,339.0
(895.0)
4,749.0
(491.0)
4,258.0
(255.0)
4,003.0
(664.0)
3,339.0
(695.0)
2,644.0
4,258.0
491.0
4,003.0
255.0
3,339.0
664.0
2,644.0
695.0
1,944.0
700.0
1.5%
-
469.8
1.5%
7.0
1,279.5
1.5%
19.2
2,138.8
1.5%
32.1
3,169.7
1.5%
47.5
5,196.5
1.7%
90.0
4,503.5
1.8%
81.0
4,130.5
1.6%
66.0
3,671.0
1.7%
62.0
2,991.5
1.5%
44.0
90.00
88.05
85.19
94.08
91.54
(700.0)
738.1
1.00%
7.38
507.1
1.00%
5.07
500.0
1.00%
5.00
500.0
1.00%
5.00
500.0
1.00%
5.00