Kimberly-Clark Corporation (KMB)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 20,371,000 | 20,396,000 | 20,317,000 | 20,317,000 | 20,217,000 | 20,153,000 | 20,100,000 | 19,700,000 | 19,300,000 | 19,236,000 | 18,919,000 | 18,819,000 | 19,128,000 | 18,875,000 | 18,832,000 | 18,832,000 | 18,456,000 | 18,456,000 | 18,398,000 | 18,402,000 |
| Property, plant and equipment | US$ in thousands | 7,913,000 | 7,700,000 | 7,815,000 | 7,866,000 | 7,885,000 | 7,737,000 | 7,931,000 | 8,114,000 | 8,097,000 | 7,964,000 | 8,018,000 | 7,887,000 | 8,042,000 | 7,497,000 | 7,366,000 | 7,226,000 | 7,450,000 | 7,158,000 | 7,207,000 | 7,139,000 |
| Fixed asset turnover | 2.57 | 2.65 | 2.60 | 2.58 | 2.56 | 2.60 | 2.53 | 2.43 | 2.38 | 2.42 | 2.36 | 2.39 | 2.38 | 2.52 | 2.56 | 2.61 | 2.48 | 2.58 | 2.55 | 2.58 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $20,371,000K ÷ $7,913,000K
= 2.57
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets. The fixed asset turnover for Kimberly-Clark Corp. over the past eight quarters ranged between 2.44 and 2.65, with an average of 2.57. This indicates that, on average, Kimberly-Clark generates approximately $2.57 in sales for every dollar invested in fixed assets.
The consistency of the fixed asset turnover ratio around the 2.5-2.6 range suggests that Kimberly-Clark has been effectively utilizing its fixed assets to drive revenue over the past two years. A higher fixed asset turnover ratio indicates better efficiency in asset utilization, which could result from effective asset management, operational improvements, or sales growth. Conversely, a declining ratio may signify inefficiencies in asset utilization or declining sales relative to fixed assets.
In conclusion, Kimberly-Clark Corp. has maintained a relatively stable fixed asset turnover over the analyzed period, indicating efficient management of fixed assets in generating sales. Overall, a consistently high fixed asset turnover ratio is a positive sign of operational efficiency and effective resource utilization for the company.
Peer comparison
Dec 31, 2023
See also:
Kimberly-Clark Corporation Net Fixed Asset Turnover (Quarterly Data)