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Colgate-Palmolive Company operates two product segments. Locate Colgate-Palmolive's 10-K for 2015. The necessary information will be in the Notes to Consolidated Financial Statements, Note 15:

Colgate-Palmolive Company operates two product segments. Locate Colgate-Palmolive's 10-K for 2015. The necessary information will be in the Notes to Consolidated Financial Statements, Note 15: Segment Information.

Note: The easiest way to locate the information is to search SEC Edgar and open the search tool.Look for the "Interactive Data" button for 2016 (which would have been filed in 2016).This will provide a clickable left column.Select "Notes Tables" and then "Segment Information." This will provide the numbers you need for each segment to complete the problem. Also, for Operating Assets, use "Identifiable Assets" on the bottom of the Segment Information page.

Requirements

  1. What are the two product segments? Gather data about each segment's net sales revenue, operating income, and identifiable assets for 2015.
  2. Calculate ROI for each segment for 2015.
  3. Which segment has the highest ROI? Explain why. (See S24-8 in demo problems for help)
  4. If you were on the top management team and could allocate extra funds to only one division, which division would you choose? Why?

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