Aureus
AExcellent

Colgate-Palmolive Company(CL)

A

Financial data as of Dec 31, 2025Improving · Consumer Staples

FCF Margin17.8%Free Cash Flow / Revenue
Cash Conversion196.9%Operating CF / Net Income
Free Cash Flow$3.6B
Revenue$20.4B
Net Cash-$7.3BNet debt position
Debt / FCF2.4xManageable debt load
Current Ratio0.83Tight short-term liquidity
YoY FCF Growth+17.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (17.8%, 2.4x)
→
-0.5Current ratio below 1.0 (0.83) (reduced — strong FCF covers short-term obligations)
→
+1Strong YoY FCF growth (17.6% YoY)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.8%)
  • Excellent cash conversion (197%)
  • FCF trend is improving

Concerns

  • Net debt position ($7.3B) — 2.4x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.8%
Net Margin10.5%
Operating CF Margin20.6%
CapEx Ratio2.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$7.3BNet debt position
Debt / FCF2.4xManageable debt load
Current Ratio0.83Tight liquidity
Debt / Equity158.41High leverage

Quarterly FCF Trend

+17.6% YoYImproving (+17.6%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameColgate-Palmolive Company
SectorConsumer Staples
Free Cash Flow$3.6B
Revenue$20.4B
Net Income$2.1B
Operating Cash Flow$4.2B
Capital Expenditure$564.0M
FCF Margin17.8%
Cash Conversion Rate196.9%
Net Margin10.5%
Total Debt$8.6B
Total Cash$1.3B
Net Cash-$7.3B
Current Ratio0.83
Debt / Equity158.41
Debt / FCF2.4x
YoY FCF Growth+17.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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