Colgate- Palmolive operates two product segments. Using the company’s website, locate segment information for 2012 in the company’s 2012 annual report. Most of the information you are seeking will be in the Notes to the Consolidated Financial Statements (found in the Form 10- K).
1. What are two segments (ignore geographical subsets of the one product segment)? Gather data about each segment’s net sales, operating income, and identifiable assets.
2. Calculate ROI for each segment.
3. Which segment has the highest ROI? Explain why.
4. If you were on the top management team and could allocate extra funds to only one division, which division would you choose? Why?