Kimberly-Clark Corporation (KMB)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	6.84	6.15	5.99	6.47	6.94
Receivables turnover	9.56	8.85	8.79	8.56	8.15
Payables turnover	3.66	3.66	3.49	3.69	4.06
Working capital turnover	—	—	—	—	—

Kimberly-Clark Corp.'s inventory turnover has shown a consistent trend over the past five years, ranging between 6.01 and 6.94 times. This indicates that the company is effectively managing its inventory levels and efficiently converting inventory into sales.

The receivables turnover ratio has also been steadily increasing from 8.15 in 2019 to 9.57 in 2023. This suggests that Kimberly-Clark Corp. is collecting its accounts receivable more quickly, which is a positive sign for the company's cash flow management.

In terms of payables turnover, the ratio has fluctuated between 3.50 and 4.06, reflecting the company's payment practices to its suppliers. The slight decrease in 2023 compared to the previous year may indicate a longer payment cycle or stronger bargaining power with suppliers.

Unfortunately, data on the working capital turnover ratio is unavailable for all years analyzed. This ratio would have provided insights into how efficiently Kimberly-Clark Corp. is utilizing its working capital to generate sales, highlighting the company's overall efficiency in managing its current assets and liabilities.

In conclusion, while the inventory turnover and receivables turnover ratios show positive trends, the payables turnover ratio suggests some variability in the company's payment practices. Additional information on the working capital turnover ratio would have provided a more comprehensive view of Kimberly-Clark Corp.'s operational efficiency.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	53.38	59.34	60.93	56.39	52.63
Days of sales outstanding (DSO)	days	38.20	41.25	41.52	42.62	44.77
Number of days of payables	days	99.74	99.72	104.50	98.85	89.82

Kimberly-Clark Corp.'s Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years, with a peak in 2021 at 60.75 days and a low in 2019 at 52.63 days. In 2023, the DOH improved to 53.26 days, indicating a more efficient management of inventory compared to the previous year.

The Days of Sales Outstanding (DSO) have decreased steadily from 44.77 days in 2019 to 38.14 days in 2023. This trend suggests that the company has been collecting its accounts receivable more rapidly, which is a positive sign for cash flow generation.

The Number of Days of Payables has been relatively stable over the years, fluctuating around an average of 100 days. In 2023, the days payable increased slightly to 99.51 days compared to the previous year. This indicates that Kimberly-Clark is taking nearly 100 days on average to pay its suppliers.

Overall, an analysis of Kimberly-Clark Corp.'s activity ratios shows improvements in inventory turnover and accounts receivable collection efficiency, while the payment period to suppliers remains relatively stable. These trends indicate effective management of working capital and potentially enhanced liquidity for the company.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	2.58	2.56	2.40	2.38	2.48
Total asset turnover	1.18	1.12	1.09	1.09	1.21

The long-term activity ratios of Kimberly-Clark Corp., as indicated by the fixed asset turnover and total asset turnover, show the efficiency of the company in generating sales relative to its investment in assets over the years.

The fixed asset turnover has been relatively stable and consistently above 2, indicating that Kimberly-Clark Corp. has been effectively utilizing its fixed assets to generate revenue. This suggests that the company has been efficient in managing its long-term investments in property, plant, and equipment to drive sales growth.

On the other hand, the total asset turnover has varied over the years but generally maintained above 1. This ratio reflects how well the company is using all its assets, both fixed and current, to generate sales. A higher total asset turnover indicates a more efficient use of assets to generate revenue.

Overall, the trend in both ratios suggests that Kimberly-Clark Corp. has been maintaining a good balance between its investment in assets and its ability to generate sales, which is crucial for sustainable growth and profitability.