Revenue Analysis
Total and Operating Revenue: CL’s total and operating revenue shows a consistent growth pattern: from $4.77 billion in Q1-2023 to $5.065 billion in Q1-2024. This indicates a growing sales performance year over year.
Gross Profit margins: Gross Profit increased from $2.712 billion in Q1-2023 to $3.039 billion in Q1-2024. This escalation suggests improved efficiency in production or sourcing, leading to a higher margin.
Cost Management
Cost of Revenue: The Cost of Revenue has generally stayed around $2 billion throughout the period but saw a slight decrease from $2.058 billion in Q1-2023 to $2.026 billion in Q1-2024.
Operating Expense: There was a fluctuating trend in operating expenses, peaking at approximately $1.998 billion in Q4-2023 before reducing slightly to $1.992 billion by Q1-2024.
Total Expenses: Total expenses followed a similar trend to operating revenues, reflecting the company’s operational activities with figures growing from $3.861 billion in Q1-2023 to $4.018 billion in Q1-2024.
Profitability Analysis
EBITDA: EBITDA increased significantly from $1.037 billion in Q1-2023 to $1.197 billion by Q1-2024, showing strengthening operational effectiveness.
Operating Income: Operating income rose from $909 million in Q1-2023 to $1.047 billion in Q1-2024, further reinforcing the company’s profitability growth.
Pretax Income: There was a noticable increase in pretax income, rising from $561 million in Q1-2023 to $967 million by Q1-2024.
Net Income: Net Income similarly showed substantial growth, from $372 million in Q1-2023 to $683 million in Q1-2024.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses have been relatively stable, indicating consistent investment in capital assets. The figure hovered around $140-$150 million throughout the period.
Interest Expense: Net Interest Income showed negative figures ($54 to $58 million), indicating the company has a net expense on interest, impacting cash flows.
Taxation
Tax Rate: The tax rate fluctuated significantly, from 26.2% in Q1-2023, lifting to 39.8% in Q2, then reducing to 21.9%-24.6% in the later periods, reflecting changes in tax liabilities and possibly different income types or changes in fiscal policy impacting the company.
Tax Provision: Tax provisions correspondingly shifted from $147 million in Q1-2023 to $238 million by Q1-2024, aligning with pretax income changes.
Tax Effect of Unusual Items: There was no significant impact from unusual items as it remained $0 throughout the analysis period.
Shareholder Metrics
Diluted and Basic EPS: Both Diluted and Basic EPS rose from $0.45 in Q1-2023 to $0.83 by Q1-2024, suggesting higher profitability per share for stockholders.
Average Shares: There has been a minor decrease in both diluted and basic average shares, indicating possible share buybacks or less dilution from convertible securities.
Net Income Available to Common Stockholders: Consistently matched net income figures, all profits were available to common shareholders, enhancing shareholder value.
Conclusion
CL has demonstrated solid financial health with consistent revenue growth, efficient cost management and robust profitability. Investors should view these trends positively, reflecting management’s capability in handling operational efficiencies and strategizing for financial growth. The minimal tax effects from unusual items and the rise in EPS endorse a stable financial environment and potential attractiveness to investors looking for reliable returns.