Question: TOPIC: COMPARATIVE CASE STUDY ON THE FINANCIAL STATEMENT BETWEEN COLGATE'S AND KIMBERLEY CLARK BASED ON 2001 TO 2011. The followings are the financial information of
TOPIC: COMPARATIVE CASE STUDY ON THE FINANCIAL STATEMENT BETWEEN COLGATE'S AND KIMBERLEY CLARK BASED ON 2001 TO 2011.
The followings are the financial information of Colgate's and Kimberley Clark from 2001 to 2011.
Colgate's Summary Financial Data
(In billions, except per share data)
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Net Sales 16.73 15.56 15.33 15.33 13.79 12.24 11.40 10.58 9.90 9.29 9.43
Gross Profit 9.59 9.20 9.01 9.01 8.22 7.21 6.62 6.15 5.75 5.35 5.46
Operating Income 3.84 3.49 3.62 3.33 2.96 2.57 2.37 2.20 2.14 2.02 1.86
Net Income 2.43 2.20 2.29 1.96 1.74 1.35 1.35 1.33 1.42 1.29 1.15
Restructuring charge (after tax) 0.00 0.06 0.00 0.11 0.18 0.29 0.15 0.06 0.04 0.00 0.00
Net Income before restructuring 2.43 2.26 2.29 2.07 1.92 1.64 1.50 1.39 1.46 1.29 1.15
Op Income before restructuring 3.84 3.55 3.62 3.44 3.14 2.86 2.52 2.26 2.18 2.02 1.86
Total Assets 12.72 11.17 11.13 9.98 10.11 9.14 8.51 8.67 7.48 7.09 6.98
Total Liabilities 10.18 8.36 7.88 7.94 7.72 7.62 7.05 7.21 6.38 6.53 5.93
Long Tern Debt 4.43 2.82 2.82 3.59 3.22 2.72 2.92 3.09 2.68 3.21 2.81
Sharehholder' Equity 2.07 2.68 3.12 1.92 2.29 1.41 1.35 1.25 0.89 0.35 0.85
Treasury Stock at cost 12.81 11.31 10.48 9.70 8.90 8.07 7.58 6.97 6.50 6.15 5.20
Basic Earnings per share 4.98 4.45 4.53 3.81 3.35 2.57 2.54 2.45 2.60 2.33 2.02
Cash Dividends per share 2.27 2.03 1.72 1.56 1.40 1.25 1.11 0.96 0.90 0.72 0.68
Closing Stock Price 92.39 80.37 82.15 68.54 77.96 65.24 54.85 51.16 50.05 52.43 57.75
Shares Outstanding (billions) 0.48 0.49 0.49 0.50 0.51 0.51 0.52 0.53 0.53 0.54 0.55
Kimberley Clark Summary Financial Data
(In billions, except per share data) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Net Sales 20.85 19.75 19.12 19.42 18.27 16.75 15.90 15.08 14.35 13.57 14.52
Gross Profit 6.15 7.38 7.27 6.68 6.60 6.36 6.12 5.91 5.66 5.55 6.71
Operating Income 2.44 2.90 3.07 2.64 2.75 2.61 2.57 2.59 2.52 2.58 2.60
Net Income 1.59 1.84 1.88 1.69 1.82 1.50 1.57 1.80 1.69 1.67 1.61
Restructuring charge (after tax) 0.29 0.00 0.09 0.05 0.10 0.31 0.17 0.01 0.00 0.00 0.04
Net Income before restructuring 1.88 1.84 1.98 1.74 1.92 1.81 1.74 1.81 1.69 1.67 1.65
Op Income before restructuring 2.73 2.90 3.16 2.69 2.84 2.92 2.73 2.60 2.52 2.58 2.64
Total Assets 19.37 19.86 19.21 18.09 18.44 17.07 16.30 17.02 16.78 15.59 15.01
Total Liabilities 13.84 13.12 12.47 12.80 11.73 9.75 9.59 9.30 9.15 9.13 8.51
Long Term Debt 5.43 5.12 4.79 4.88 4.39 2.28 2.59 2.30 2.73 2.84 2.42
Sharehholder' Equity 5.53 5.92 5.41 3.88 5.22 6.10 5.56 6.63 6.77 5.65 5.65
Treasury Stock at cost 2.11 4.73 4.09 4.29 3.81 1.39 6.38 5.05 3.82 3.35 2.75
Basic Earnings per share 4.02 4.47 4.53 4.08 4.13 3.27 3.33 3.58 3.34 3.26 3.04
Cash Dividends per share 2.76 2.58 2.38 2.27 2.08 1.92 1.75 1.54 1.32 1.18 1.11
Closing Stock Price 73.56 63.04 63.71 52.74 69.34 67.95 59.65 65.81 59.09 47.47 59.80
Shares Outstanding (billions) 0.40 0.41 0.42 0.41 0.42 0.46 0.46 0.48 0.50 0.51 0.52
Required:
Calculate and compare the following ratios of both companies based on the years.Justify with your argument which company have a better financial position.
i. Return on equity
ii. Return on assets
iii. Operating profit margin
iv. Gross profit margin
v. Total asset turnover
vi. Total liabilities to equity
vii. Long-term debt to equity
viii. Price to earnings
ix. Price to book
x. Dividend Payout
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