Colgate-Palmolive operates two product segments. Using the company’s website, lo
ID: 2766248 • Letter: C
Question
Colgate-Palmolive operates two product segments. Using the company’s website, locate segment information for 2008 in the company’s 2008 annual report. (Hint: Look under investor relations.) Then, look in the financial statement footnotes. Requirements 1. What are the two segments (ignore geographical subsets of the one product segment)? Gather data about each segment’s 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?
Explanation / Answer
1)The Company manages its business in two product segments: Oral, Personal and Home Care; and Pet Nutrition.
4. PET NUTRITION division- as the RETURN on Investment is higher.
2.Data about each segment’s net sales, operating income, and identifiable assets 2008 Net Sales Operating Income Identifiable assets Oral.Personal & Home Care 13182.4 3062.6 8870.5 Pet Nutrition 2147.5 541.8 1025.1 Corporate -583.7 83.7 Total 15329.9 3020.7 9979.3