Colgate-Palmolive Brightens: Fool by Numbers

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On Jan. 25, Colgate-Palmolive (NYSE: CL) released FY 2005 earnings for the period ended Dec. 31, 2005.

• Global pricing increased 2% in Q4 2004, the largest increase in 21 quarters.
• Excluding restructuring charges, gross profit margin in Q4 was 56%, compared with 55% last year.
• Cash flows from operations increased by a mere 1.7% in 2005.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	FY 2005	FY 2004	% Change
Sales	$11,450	$11,397	$10,584	+7.7%
Net Profit	--	$1,351	$1,327	+1.8%
EPS	$2.63	$2.43	$2.33	+4.3%

Get back to basics with a look at the income statement.

Margin Checkup

	FY 2005	FY 2004	Change
Gross Margin	54.44%	55.15%	-0.71%
Op. Margin	19.43%	20.05%	-0.61%
Net Margin	11.85%	12.54%	-0.68%

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	FY 2005	FY 2004	% Change
Cash+ ST Invest.	$341	$320	+6.6%
Inventory	$856	$846	+1.2%
Accounts Rec.	$1,309	$1,320	-0.8%

Liabilities	FY 2005	FY 2004	% Change
Total Debt	$3,446	$3,675	-6.2%

Cash Flow Highlights

	FY 2005	FY 2004	% Change
Cash From Ops.	$1,784	$1,754	+1.7%
Capital Expend.	$389	$348	+11.8%
Free Cash Flow	$1,395	$1,406	-0.8%

Find out why Fools always follow the money.

Related Companies:

• Procter & Gamble (NYSE: PG)
• Church & Dwight (NYSE: CHD)
• Water Pik Technologies (NYSE: PIK)
• Johnson & Johnson (NYSE: JNJ)
• Del Monte Foods (NYSE: DLM)
• Young Innovations (Nasdaq: YDNT)

Related Foolishness:

• Foolish Fundamentals: Margins
• Foolish Fundamentals: Free Cash Flow
• Foolish Fundamentals: The Cash Flow Statement

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Colgate-Palmolive has beaten the market by 10.5 percentage points since Philip Durell recommended it for his Motley Fool Inside Value newsletter service back in December 2004. To find more of the market's best bargains, sign up today for a 30-day free trial.

At the time of publication, John Reeves had positions in Johnson & Johnson and Procter & Gamble. Fool rules are here.