accounting 203

EXPOSING & ANALYZING RETURN ON INVESTMENT (ROI)

IN CORPORATE FINANCING

COLGATE PALMOLIVE Company (C-P)

THE CHALLENGE:

What segment (Operating Division) of C-P deserves further investment based on ROI?

THE ASSIGNMENT:

Complete the Answer Sheet – Table and Questions

POST THE ANSWER SHEET IN CANVAS IN RESPONSE TO THIS ASSIGNMENT

Explore the Colgate Palmolive K-10 2015 Report to discover these issues:

What are names of the two Product Segments that define C-P?

Define these data for both segments for the year 2015:

Net Sales Revenue

Operating Income

Identifiable “employed” Assets

Compute these Ratios:

Gross Margin (Profit to Sales) Ratio

Sales to Assets Raito

Return on Assets Ratio (Return on Investment (ROI))

THE PROCESS:

Access the Colgate Palmolive K-10 2015 Report through the SEC’s EDGAR SYSTEM:

CLICK ON THIS LINK (works on a PC):

https://www.sec.gov/Archives/edgar/data/21665/000162828016011343/cl-12312015x10k.htm

OR COPY & PASTE THIS ADDRESS IN YOUR BROWSER:

https://www.sec.gov/Archives/edgar/data/21665/000162828016011343/cl-12312015x10k.htm

Use the Table of Contents to find the “Notes to Consolidated Financial Statements”

Scroll down to and explore Note 15: Segment Information

Find all the data and complete this table:

COLGATE-PALMOLIVE COMPANY 2015 DATA
2015 DATA	SEGMENT # 1	SEGMENT #2
NAME
NET SALES
OPERATING INCOME
IDENTIFIABLE ASSETS
PROFIT MARGIN %
SALES TO ASSETS RATIO
RETURN ON INVESTMENT %

SAMPLE

YOU MUST USE THE SEPARATE WORD DOCUMENT

TO POST YOUR ANSWER SHEET IN CANVAS

ACCT203 ROI EXERCISE ANSWER SHEET NAME ______________________

CLICK ON THIS LINK (works on a PC) OR COPY & PASTE THIS ADDRESS IN YOUR BROWSER:

https://www.sec.gov/Archives/edgar/data/21665/000162828016011343/cl-12312015x10k.htm

COMPLETE THIS TABLE WITH THE DATA YOU FOUND AND COMPUTED

COLGATE-PALMOLIVE COMPANY 2015 DATA
2015 DATA	SEGMENT # 1	SEGMENT #2
NAME
NET SALES
OPERATING INCOME
IDENTIFIABLE ASSETS
PROFIT MARGIN %
SALES TO ASSETS RATIO
RETURN ON INVESTMENT %

ANSWER THESE QUESTIONS:

Which segment has the highest ROI – Please elaborate on why you think this happened.

If you were on top management team at C-P and could only allocate extra funds for Capital Investment expansion into one segment, which segment would you choose and why?

EXPLORE the C-P 10-K Report and name three parts of the 10-K Report where you found interesting data and why

10-K SECTION	INTERESTING INFORMATION & DATA	THIS DATA WAS INTERESTING BECAUSE:

IMPORTANT

MAKE SURE THAT YOU ENTERED YOUR NAME ON THE TOP OF THIS FORM

SAVE THIS WORD DOCUMENT AS:

ACCT203 ROI ANSWER SHEET NAME.docx

where “NAME” is your last name, i.e., SMITH

POST THIS WORD DOCUMENT AS A RESPONSE TO THE CANVAS ASSIGNMENT

FOLLOW SCREEN SHOTS - COLGATE PALMOLIVE K-10 2015 Report

Click on this Hotlink

ACCESS COLGATE-PALMOLIVE DATA - GO TO "NOTES" & FIND NOTE 15: SEGMENT INFORMATION

OR COPY & PASTE THIS ADDRESS IN YOUR BROWSER:

https://www.sec.gov/Archives/edgar/data/21665/000162828016011343/cl-12312015x10k.htm

OPENING PAGE OF THE COLGATE PALMOLIVE K-10 2015 Report

SCROLL DOWN TO THE “TABLE OF CONTENTS”:

CLICK ON “PAGE 53” AND SCROLL DOWN TO “ITEM 15”:

SCROLL DOWN TO THE “INDEX TO FINANCIAL STATEMENTS”

CLICK ON “NOTES TO CONSOLIDATED STATEMENTS”

SCROLL DOWN TO NOTE 15 (Page 96):

SCROLL DOWN TO SALES DATA (Page 97):

SCROLL DOWN TO PROFIT DATA (Page 98):

SCROLL DOWN TO IDENTIFIABLE ASSETS DATA (Page 99):

SCROLL DOWN FURTHER AND REVEAL THEIR STOCK PRICE HISTORY (Page 107)