Question

2.         Consider the information below for Colgate-Palmolive Company and its industry USD mil Colgate-Palmolive 2012...

2.         Consider the information below for Colgate-Palmolive Company and its industry

USD mil

Colgate-Palmolive

2012

2013

2014

2015

Revenue

    16,734

       17,085

       17,420

       17,277

Net income

     2,431

          2,472

       2,241

          2,180

Total Assets

    12,724

       13,394

       13,876

       13,459

Shareholders’ Equity

6,953

          7,163

        7,303

          7,917

Industry

        2015

Profit Margin

10.58%

Total Asset Turnover

0.74

Leverage

2.28

ROE

17.85%
  1. Calculate the return on assets and the return on equity for each year.
  1. Discuss the changes in returns from year to year using the decomposition of ROE.
  1. Comment on Colgate-Palmolive’s’ ROE in 2015 relative to the industry.
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