Kimberly-Clark Corporation (KMB)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,878,000 | 13,368,000 | 13,956,000 | 13,412,000 | 12,318,000 |
| Payables | US$ in thousands | 3,715,000 | 3,653,000 | 3,813,000 | 3,840,000 | 3,336,000 |
| Payables turnover | 3.47 | 3.66 | 3.66 | 3.49 | 3.69 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,878,000K ÷ $3,715,000K
= 3.47
To analyze Kimberly-Clark Corporation's payables turnover, we calculated the payables turnover ratio using the provided data. The payables turnover ratio indicates how efficiently the company manages its accounts payable.
For the years presented:
- December 31, 2020: Payables turnover ratio was 3.69
- December 31, 2021: Payables turnover ratio was 3.49
- December 31, 2022: Payables turnover ratio was 3.66
- December 31, 2023: Payables turnover ratio was 3.66
- December 31, 2024: Payables turnover ratio was 3.47
The payables turnover ratios have shown some fluctuations over the years, but overall, they remain relatively stable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, possibly taking advantage of discounts or negotiating favorable credit terms. Conversely, a lower payables turnover ratio could suggest extended payment terms or inefficiencies in managing accounts payable.
Kimberly-Clark Corporation's payables turnover ratios indicate a consistent level of efficiency in managing its accounts payable over the period analyzed. Monitoring this ratio over time can provide insights into the company's liquidity management and relationships with suppliers.
Peer comparison
Dec 31, 2024