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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: 1. The easiest way to locate the information is to search SEC Edgar and open the search toole. 2. Enter Colgate Palmolive in the Company Name box. 3. Click on the red "CIK" number for Colgate Palmolive Co. 4. About 40 pages of company filings come up. We need to narrow it down so enter "10-K" in the company filing type and click the search button on the far right. 5. Choose the "2016-02-18" to access the 2015 year end report and click on "Interactive Data" 6. This is a nicely organized way to access various parts of the annual report. Click on "Notes Tables' from here. 7. Next select Segment Information (tables). Now you have Colgate Palmolive operating results by segment including "Oral, Personal, and Home Care" by region and Pet Nutrition. 8. 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. (Brief video to help you find Colgate- Palmolive's data. Get data from 2016 filing for 2015 data) 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? Your solution will be graded for accuracy, completeness, and the strength of your reasoning for question 4. M-8 Colgate Palmolive Criteria Ratings Pts Segment Data 2.0 pts ROI 2.0 pts 3. Which ROI is higher and why? 3.0 pts 4. Which management team would you allocate funds to and why? 3.0 pts Total Points: 10.0
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