Colgate-Palmolive operates two product segments. Using the company Web site, locate segment information for the company%u2019s latest published annual report. (Hint: Go to the company Web site and look under %u201Cfor investors.%u201D From there, find the information on the %u201C10-K.%u201D Within the 10-K, find the Financial Statements and Supplemental Data and look for one of the notes to the financial statements that provides Segment Information.)
Requirements
1. What are the two product segments? Gather data about each segment%u2019s net sales, operating income, and identifiable assets.
2. Calculate ROI for each segment.
3. Which segment has the highest ROI? Explain why.
4. If you were on the top management team and could allocate extra funds to only one division, which division would you choose? Why?