C15-45

Collect and analyze division data(Learning Objective 5)

Colgate-Palmoliveoperatestwoproductsegments.Usingthecompanyswebsite,locatesegmentinformationfor2008inthecompanys2008annualreport.(Hint:Lookunderinvestorrelations.)Then,lookinthefinancialstatementfootnotes.

Requirements

• 1.What arethetwosegments (ignore geographical subsets oftheoneproductsegment)? Gather data about eachsegments net sales, operatingincome, and identifiable assets.
• 2.Calculate ROIforeachsegment.
• 3.Whichsegmenthasthehighest ROI? Explainwhy.
• 4.If you were onthetop management team and could allocateextra funds to only one division, which division would you choose? Why?