Kimberly-Clark Corporation (KMB)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover	7.05	6.61	6.75	6.98	6.82	6.67	6.43	6.25	6.17	6.19	6.20	6.08	5.95	6.21	5.97	6.24	6.47	6.80	6.65	8.08
Receivables turnover	9.97	8.99	8.77	8.53	9.54	8.87	8.61	8.36	8.87	8.64	8.14	7.83	8.74	8.02	8.09	8.56	8.56	8.88	9.30	7.48
Payables turnover	3.46	3.51	3.58	3.71	3.65	3.86	3.69	3.67	3.67	3.86	3.82	3.58	3.47	3.70	3.77	3.87	3.69	4.06	4.00	4.32
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Kimberly-Clark Corporation's inventory turnover has shown a relatively stable trend over the past few years, ranging from 5.95 to 7.05. This indicates that the company is effectively managing its inventory levels and converting them into sales within a reasonable timeframe.

The receivables turnover ratio has also been consistent, fluctuating between 7.48 and 9.97. This suggests that Kimberly-Clark is efficient in collecting payments from its customers, which is a positive sign of its credit and collection policies.

On the other hand, the payables turnover ratio has displayed some variability, ranging from 3.46 to 4.32. A lower payables turnover ratio could indicate that the company is taking longer to pay its suppliers, which may impact its liquidity and supplier relationships.

The working capital turnover ratio data is marked as not applicable for all periods, which makes it challenging to assess the efficiency of Kimberly-Clark's working capital management based on this metric. Additional information or alternative metrics would be needed to evaluate this aspect of the company's operations effectively.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	51.76	55.24	54.08	52.29	53.50	54.75	56.74	58.43	59.16	58.94	58.84	59.99	61.39	58.81	61.14	58.52	56.44	53.68	54.86	45.18
Days of sales outstanding (DSO)	days	36.61	40.60	41.63	42.80	38.26	41.13	42.39	43.67	41.16	42.25	44.84	46.62	41.74	45.52	45.15	42.65	42.65	41.09	39.23	48.82
Number of days of payables	days	105.53	103.90	102.04	98.36	99.96	94.54	99.00	99.53	99.42	94.58	95.59	101.86	105.29	98.65	96.70	94.31	98.95	89.97	91.14	84.42

Kimberly-Clark Corporation's activity ratios reflect its efficiency in managing inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH): The trend in DOH shows an increasing number of days over the years, indicating that Kimberly-Clark is holding onto its inventory for a longer period before selling it. This could be a sign of either overstocking or slow sales, which may tie up working capital and increase storage costs.

2. Days of Sales Outstanding (DSO): DSO measures how quickly the company collects payments from its customers. The decreasing trend in DSO suggests that Kimberly-Clark is collecting its receivables faster over time, indicating efficient credit management and timely collection efforts.

3. Number of Days of Payables: The trend in payables days suggests that Kimberly-Clark is taking longer to pay its suppliers. While a longer payables period can help conserve cash and improve cash flow, it may strain relationships with suppliers if payment terms are extended too far.

Overall, Kimberly-Clark's activity ratios indicate areas where the company can potentially enhance efficiency, such as optimizing inventory levels, maintaining a balance in payment terms with suppliers, and continuing to manage accounts receivable effectively to ensure a healthy cash flow.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Fixed asset turnover	2.67	2.60	2.65	2.61	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
Total asset turnover	1.21	1.17	1.17	1.19	1.17	1.19	1.17	1.12	1.13	1.13	1.11	1.06	1.08	1.08	1.06	1.09	1.09	1.14	1.16	1.20

Kimberly-Clark Corporation's fixed asset turnover ratio has been relatively stable over the past few years, ranging between 2.36 and 2.67. This indicates that the company is generating between $2.36 to $2.67 in revenue for every dollar invested in fixed assets. The slight fluctuations in this ratio suggest that Kimberly-Clark is efficiently utilizing its fixed assets to generate sales.

In terms of total asset turnover, the ratio has shown a decreasing trend, falling from 1.20 in March 2020 to 1.21 in December 2024. This indicates a decline in the company's ability to generate sales revenue relative to its total assets. However, it is essential to note that a total asset turnover ratio above 1 still indicates that the company is generating more revenue than the total value of its assets.

Overall, while Kimberly-Clark's fixed asset turnover ratio remains stable and reflects efficient use of fixed assets, the declining trend in total asset turnover suggests a potential decrease in overall asset efficiency in generating sales revenue over the years.