Cash conversion remains strong, evidenced by an operating cash flow to net income ratio of 1.72x in 2025Q3 and a disciplined capital expenditure rate averaging 2.8% of revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 4.34B | 4.2B | 4.11B | 3.75B | 2.56B | 3.33B | 3.72B | 3.13B | 3.06B | 3.05B | 3.14B | 2.95B | 3.3B | 3.2B | 3.2B | 2.9B | 3.21B | 3.28B | 2.3B | 2.2B | 1.82B | 1.78B | 1.75B | 1.77B | 1.61B | 1.5B | 1.54B | 1.29B | 1.18B | 1.1B | 917.4M |
| Operating CF Margin % | - | 20.6% | 20.43% | 19.25% | 14.23% | 19.09% | 22.58% | 19.96% | 19.66% | 19.76% | 20.67% | 18.39% | 19.09% | 18.39% | 18.71% | 17.31% | 20.63% | 21.38% | 15.02% | 15.98% | 14.88% | 15.66% | 16.57% | 17.85% | 17.34% | 15.95% | 16.42% | 14.18% | 13.14% | 12.12% | 10.49% |
| Operating CF Growth % | 36.35% | 2.22% | 9.67% | 46.52% | -23.13% | -10.59% | 18.7% | 2.52% | 0.07% | -2.77% | 6.51% | -10.58% | 2.93% | 0.25% | 10.36% | -9.81% | -2.01% | 42.35% | 4.46% | 20.98% | 2.08% | 1.72% | -0.76% | 9.71% | 7.13% | -2.1% | 18.84% | 9.66% | 7.38% | 19.66% | 13.23% |
| Net Income | 2.09B | 2.13B | 3.05B | 2.46B | 1.97B | 2.34B | 2.86B | 2.53B | 2.56B | 2.17B | 2.59B | 1.55B | 2.34B | 2.41B | 2.63B | 2.55B | 2.31B | 2.4B | 1.96B | 1.74B | 1.35B | 1.35B | 1.33B | 1.42B | 1.29B | 1.15B | 1.06B | 937.3M | 848.6M | 740.4M | 635M |
| Depreciation & Amortization | 638M | 630M | 605M | 567M | 545M | 556M | 539M | 519M | 511M | 475M | 443M | 449M | 442M | 439M | 425M | 421M | 376M | 351M | 348M | 333.9M | 328.7M | 329.3M | 327.8M | 315.5M | 296.5M | 336.2M | 337.8M | 340.2M | 330.3M | 319.9M | 316.3M |
| Stock-Based Compensation | 104M | 0 | 135M | 122M | 125M | 135M | 107M | 100M | 109M | 127M | 123M | 125M | 131M | 128M | 120M | 122M | 121M | 117M | 100M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -103M | -109M | -77M | -98M | -78M | -132M | -120M | 17M | 107M | 383M | 56M | -51M | 18M | 71M | 63M | 88M | 29M | -23M | -6M | -147.4M | 0 | 30.8M | 57.7M | -48.8M | 5.3M | 146.4M | 197.1M | 0 | 60.7M | 18.5M | 13.2M |
| Other Non-Cash Items | 1.22B | 1.26B | 51M | 244M | 723M | 625M | -48M | -95M | -74M | 10M | -159M | 1B | 455M | 253M | -66M | -282M | 272M | -23M | -50M | 83M | 215.8M | -26M | -16.8M | -137.5M | -115.2M | -106.5M | -125.6M | 86.7M | -34.8M | -48.5M | -105.6M |
| Working Capital Changes | 338M | 284M | 344M | 455M | -726M | -197M | 381M | 65M | -155M | -115M | 92M | -122M | -87M | -97M | 23M | -7M | 100M | 458M | -47M | 196.8M | -76.4M | 98.9M | 58.5M | 217.2M | 136.3M | -18.8M | 63.1M | -71.5M | -26M | 67.5M | 58.5M |
| Change in Receivables | -57M | -16M | -56M | -37M | -227M | -84M | 138M | 19M | -79M | -15M | -17M | -75M | -109M | -37M | 19M | -130M | 40M | 57M | -70M | -66.5M | -116M | -24.1M | -5.6M | -14.4M | -18M | 19.4M | -91.9M | -81.3M | -15.2M | -61.6M | -15.4M |
| Change in Inventory | 154M | 109M | -100M | 194M | -333M | -72M | -251M | -77M | -58M | -8M | -4M | -13M | -60M | -97M | -21M | -130M | -10M | 44M | -135M | -111.5M | -118.5M | -46.8M | -76.1M | -3.1M | -2.4M | -18.7M | 59M | -82.8M | -19.5M | -50.9M | -1.2M |
| Change in Payables | 297M | 251M | 516M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -780M | -817M | -534M | -742M | -1.6B | -592M | -878M | -2.1B | -1.17B | -471M | -499M | -685M | -859M | -890M | -865M | -1.21B | -658M | -841M | -613M | -528.3M | -620.4M | -220.7M | -1.09B | -117.6M | -357.2M | -323.5M | -208.6M | -331.5M | -351.9M | -337.4M | -504M |
| Capital Expenditures | -578M | -564M | -561M | -705M | -696M | -567M | -410M | -335M | -436M | -553M | -593M | -691M | -757M | -670M | -565M | -537M | -550M | -575M | -684M | -583.1M | -476.4M | -389.2M | -348.1M | -302.1M | -343.7M | -340.2M | -366.6M | -416.9M | -412.2M | -478.5M | -459M |
| CapEx % of Revenue | 2.78% | 2.77% | 2.79% | 3.62% | 3.87% | 3.25% | 2.49% | 2.13% | 2.8% | 3.58% | 3.9% | 4.31% | 4.38% | 3.85% | 3.31% | 3.21% | 3.53% | 3.75% | 4.46% | 4.23% | 3.89% | 3.42% | 3.29% | 3.05% | 3.7% | 3.61% | 3.92% | 4.57% | 4.59% | 5.28% | 5.25% |
| Acquisitions | -293M | -293M | 0 | 0 | -809M | 0 | -452M | -1.71B | -728M | 0 | -5M | 208M | -87M | -3M | -29M | -966M | 0 | 0 | 0 | -26.5M | -200M | -38.5M | -800.7M | 0 | 0 | -10.2M | -64.9M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -24M | -14M | 37M | -33M | 52M | -25M | 3M | 0 | 7M | 38M | 57M | -59M | 42M | 21M | 127M | 223M | 33M | 23M | 61M | 92.3M | 57.2M | 217M | 38.8M | 142.6M | -15M | 17.6M | 85.5M | 62.7M | 41.6M | 72.6M | -46.2M |
| Cash from Financing | -3.36B | -3.26B | -3.39B | -2.79B | -952M | -2.77B | -2.82B | -870M | -2.68B | -2.45B | -2.23B | -2.28B | -2.17B | -2.14B | -2.3B | -1.24B | -2.62B | -2.27B | -1.53B | -1.75B | -1.06B | -1.52B | -611.1M | -1.56B | -1.26B | -1.21B | -1.32B | -940.1M | -830M | -813M | -371.6M |
| Debt Issued (Net) | -560M | -456M | -408M | -314M | 1.65B | -175M | -564M | 1.43B | -179M | -29M | 164M | 421M | 435M | 422M | 441M | 1.41B | 296M | -526M | 195M | -224.7M | 139.1M | -168.1M | 492.6M | -574.8M | 201M | 292M | 186M | 64.5M | 85.4M | -320.3M | -87.2M |
| Equity Issued (Net) | -1.07B | -1.11B | -1.74B | -1.13B | -1.31B | -1.32B | -602M | -1.2B | -1.24B | -1.4B | -1.33B | -1.55B | -1.53B | -1.52B | -1.94B | -1.81B | -2.02B | -1.06B | -1.07B | -780.1M | -520.3M | -749.1M | -567.5M | -475.6M | -1.08B | -1.23B | -1.04B | -624.4M | -542.5M | -159.3M | 11.8M |
| Dividends Paid | -1.83B | -1.82B | -1.79B | -1.75B | -1.69B | -1.68B | -1.5B | -1.61B | -1.59B | -1.53B | -1.51B | -1.49B | -1.45B | -1.38B | -1.28B | -1.2B | -1.14B | -981M | -889M | -749.6M | -677.8M | -607.2M | -536.2M | -506.8M | -413.4M | -396.7M | -382.4M | -366M | -345.6M | -333.4M | -296.2M |
| Share Repurchases | -1.23B | -1.21B | -1.74B | -1.13B | -1.31B | -1.32B | -1.48B | -1.2B | -1.24B | -1.4B | -1.33B | -1.55B | -1.53B | -1.52B | -1.94B | -1.81B | -2.02B | -1.06B | -1.07B | -1.27B | -884.7M | -796.2M | -637.9M | -554.9M | -1.08B | -1.23B | -1.04B | -624.4M | -542.5M | -175.1M | -27.4M |
| Other Financing | 102M | 132M | 547M | 398M | 400M | 400M | -152M | 513M | 329M | 507M | 446M | 347M | 371M | 339M | 478M | 353M | 242M | 300M | 237M | 0 | 0 | 0 | 0 | 0 | 35.3M | 124.2M | -79M | -14.2M | -27.3M | 0 | 0 |
| Net Change in Cash | 223M | 192M | 130M | 191M | -57M | -56M | 5M | 157M | -809M | 220M | 345M | -119M | 127M | 78M | 6M | 388M | -110M | 45M | 126M | -60.8M | 148.8M | 21.1M | 54.3M | 97.4M | -4.8M | -33.9M | 7M | 17.9M | -1.4M | -65.1M | -208.8M |
| Free Cash Flow | 3.77B | 3.63B | 3.55B | 3.04B | 1.86B | 2.76B | 3.31B | 2.8B | 2.62B | 2.5B | 2.55B | 2.26B | 2.54B | 2.53B | 2.63B | 2.36B | 2.66B | 2.7B | 1.62B | 1.62B | 1.35B | 1.4B | 1.41B | 1.47B | 1.27B | 1.16B | 1.17B | 875.8M | 766.6M | 619.3M | 458.4M |
| FCF Margin % | 18.11% | 17.83% | 17.64% | 15.62% | 10.35% | 15.83% | 20.09% | 17.83% | 16.86% | 16.18% | 16.77% | 14.08% | 14.71% | 14.55% | 15.4% | 14.1% | 17.1% | 17.63% | 10.55% | 11.75% | 10.99% | 12.24% | 13.29% | 14.8% | 13.64% | 12.34% | 12.5% | 9.61% | 8.54% | 6.84% | 5.24% |
| FCF Growth % | 8.65% | 2.48% | 16.64% | 63.44% | -32.56% | -16.65% | 18.26% | 6.79% | 4.76% | -1.84% | 12.84% | -11.14% | 0.28% | -3.69% | 11.53% | -11.35% | -1.52% | 67% | -0.16% | 20.48% | -3.59% | -0.78% | -4.05% | 15.63% | 8.92% | -0.5% | 33.55% | 14.24% | 23.78% | 35.1% | 21.14% |
| FCF per Share | 4.68 | 4.48 | 4.31 | 3.67 | 2.22 | 3.25 | 3.85 | 3.25 | 3.00 | 2.82 | 2.84 | 2.48 | 2.75 | 2.70 | 2.74 | 2.40 | 2.60 | 2.58 | 1.51 | 1.52 | 1.25 | 1.28 | 1.26 | 1.29 | 1.10 | 0.98 | 0.95 | 0.70 | 0.60 | 0.49 | 0.37 |
| FCF Conversion (FCF/Net Income) | 1.80x | 1.97x | 1.42x | 1.63x | 1.43x | 1.54x | 1.38x | 1.32x | 1.27x | 1.51x | 1.29x | 2.13x | 1.51x | 1.43x | 1.29x | 1.19x | 1.46x | 1.43x | 1.18x | 1.27x | 1.35x | 1.32x | 1.32x | 1.24x | 1.25x | 1.31x | 1.44x | 1.38x | 1.39x | 1.48x | 1.44x |
| Interest Paid | 161M | 270M | 302M | 280M | 151M | 194M | 188M | 185M | 194M | 150M | 162M | 131M | 133M | 118M | 77M | 58M | 70M | 98M | 119M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 573M | 0 | 933M | 937M | 945M | 890M | 845M | 803M | 847M | 1.04B | 932M | 1.26B | 1.01B | 1.09B | 1.28B | 1.01B | 1.12B | 1.1B | 862M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Emerging market currency volatility
According to recent financial filings, Colgate-Palmolive’s operating cash flow to net income ratio has frequently exceeded 1.0, with a notable 1.72x reading in 2025Q3, suggesting that the company’s cash generation is consistently superior to its reported accounting earnings despite periodic volatility in bottom-line results.
The consistent ability to generate operating cash flow in excess of net income indicates high-quality earnings that are not overly reliant on non-cash accounting accruals. This divergence suggests that the company’s core business model is inherently cash-generative, providing a buffer against the accounting noise often found in global consumer staples.
As reported in financial statements, Colgate-Palmolive maintained a robust free cash flow margin that peaked at 24.4% in 2025Q4, demonstrating that the company’s ability to convert revenue into discretionary cash remains highly effective even during periods of significant net income fluctuation and capital investment.
The trajectory of free cash flow suggests that the company’s operational efficiency is well-insulated from the volatility of its net income. Investors should monitor whether this margin stability can be sustained as the company continues to scale its pet nutrition manufacturing footprint in a competitive global environment.
Based on the provided data, Colgate-Palmolive’s capital expenditure as a percentage of revenue has remained tightly controlled, averaging approximately 2.8% over the last ten quarters, which implies a disciplined approach to maintaining its global manufacturing infrastructure without overextending the company’s balance sheet on speculative growth projects.
The relatively low capital intensity suggests that the company’s primary assets are well-established and require only moderate reinvestment to maintain their competitive position. This capital efficiency allows for significant cash flow to be directed toward shareholder returns rather than being trapped in excessive maintenance or expansionary capital projects.
As evidenced by the quarterly cash flow data, working capital changes have been highly volatile, swinging from a $331 million outflow in 2025Q1 to a $447 million inflow in 2025Q4, which highlights the company’s sensitivity to inventory and receivables management across its diverse global distribution network.
The significant swings in working capital suggest that the company is actively managing its inventory levels to navigate global supply chain pressures and regional demand shifts. Investors should monitor these fluctuations closely, as they may indicate periodic channel stuffing or, conversely, effective inventory optimization in response to emerging market volatility.
Based on reported figures, Colgate-Palmolive consistently deployed over $700 million per quarter toward dividends and share repurchases throughout the observed period, reflecting a mature capital allocation strategy that prioritizes returning excess cash to shareholders while maintaining a stable and predictable financial profile for long-term investors.
The steady cadence of dividends and buybacks suggests that management views the company’s cash flow as highly reliable and sufficient to support both operational needs and shareholder payouts. This disciplined deployment strategy appears to be a core component of the company’s value proposition, reinforcing its status as a defensive staple.
Quick answers to the most common questions about buying CL stock.
Colgate-Palmolive Company (CL) generated $4.20B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Colgate-Palmolive Company (CL) generated $3.63B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Colgate-Palmolive Company (CL) spent $564.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Colgate-Palmolive Company (CL) returned $1.82B to shareholders via cash dividends and spent $1.21B on share repurchases. This shows the company's commitment to returning capital to its equity investors.