Kimberly-Clark Corporation (KMB)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,368,000 | 13,956,000 | 13,412,000 | 12,318,000 | 12,415,000 |
| Inventory | US$ in thousands | 1,955,000 | 2,269,000 | 2,239,000 | 1,903,000 | 1,790,000 |
| Inventory turnover | 6.84 | 6.15 | 5.99 | 6.47 | 6.94 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,368,000K ÷ $1,955,000K
= 6.84
Kimberly-Clark Corp.'s inventory turnover has shown a fluctuating trend over the past five years. The company's inventory turnover ratio was 6.94 in 2019, decreased to 6.47 in 2020, increased to 6.01 in 2021, further rose to 6.15 in 2022, and then peaked at 6.85 in 2023.
A higher inventory turnover ratio indicates that the company is selling its inventory more frequently within a given period, which is generally viewed positively as it implies efficient inventory management. Kimberly-Clark Corp.'s inventory turnover ratio has shown a mixed performance, with some fluctuations observed over the years.
Overall, the company's inventory turnover ratio has ranged between 6.01 and 6.94, reflecting a relatively stable performance in efficiently managing inventory levels and turning them into sales. Further analysis and comparison with industry benchmarks could provide more insights into the effectiveness of Kimberly-Clark Corp.'s inventory management strategies.
Peer comparison
Dec 31, 2023