Colgate Financial Anaysis

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Accounting Project Colgate Palmolive Company Financial Analysis April 23, 2012 Introduction The Colgate-Palmolive Company has made its way into almost every household at some point in time. The company manages two primary segments, including Oral, Personal, and Home Care and Pet Nutrition. The Colgate-Palmolive Company manufactures and markets consumer products worldwide and has done so for more than 200 years. The oral healthcare division consists of toothpaste, toothbrushes, mouthwash, dental floss, and various pharmaceutical products used by dentists. This is the primary division for Colgate-Palmolive, accounting for 43% of total sales. The personal care category consists of liquid hand soap, shower gels, bar soaps, deodorants, and antiperspirants. Colgate-Palmolive is the leader in hand soap sales in the United States with its line of Softsoap. The home care division is made up of dishwashing liquids, household cleaners, and fabric softeners. The pet nutrition category consists of pet food sold by authorized pet supply retailers under the Hill’s Science Diet and Hill’s Prescription Diet label. The manufacturing process for Colgate toothpaste has evolved significantly since the company first started. Today, toothpaste is made from the following ingredients: * Binders that are used to thicken the toothpaste, * Abrasives that get rid of plaque and loosen particles, * Sudsers, which are also known as foaming agents, * Humectants keep the solid and liquid phases of toothpaste together to maintain the paste consistency, * Flavors and sweeteners are added to make toothpaste more appetizing, and * Fluoride that helps reduce tooth decay by strengthening teeth. To begin the manufacturing process, the ingredients are weighed, ensuring the accuracy of the ingredients’ proportion. Then they are mixed together in a mixing vat.

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