Kimberly-Clark Corporation (KMB)
Payables 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 |
| Payables | US$ in thousands | 3,653,000 | 3,813,000 | 3,840,000 | 3,336,000 | 3,055,000 |
| Payables turnover | 3.66 | 3.66 | 3.49 | 3.69 | 4.06 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $13,368,000K ÷ $3,653,000K
= 3.66
The payables turnover ratio for Kimberly-Clark Corp. has shown a stable trend over the past five years, fluctuating within a relatively narrow range. The ratio was 3.67 in 2023, slightly higher compared to the previous year. This indicates that the company takes approximately 3.67 days to pay off its accounts payable on average.
While the ratio has not shown any significant deterioration, it is important to note that a declining trend was observed from 2021 to 2023, from 3.50 to 3.67. This suggests that the company may be taking slightly longer to pay its suppliers compared to the earlier years.
Overall, a payables turnover ratio in the range of 3.50 to 4.06 indicates that Kimberly-Clark Corp. has been managing its trade payables efficiently, striking a balance between timely payments to suppliers and maintaining working capital. Continuous monitoring of this ratio will be crucial to ensure effective management of the company's payables in the future.
Peer comparison
Dec 31, 2023