Kimberly-Clark Corporation (KMB)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	6.94	7.07	6.82	6.84
Receivables turnover	9.54	8.88	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	8.16	8.00	7.68	7.74
Payables turnover	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	4.07	4.28	4.23	4.20
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Kimberly-Clark Corp.'s inventory turnover has shown a consistent upward trend over the past eight quarters, indicating efficient management of inventory levels. The company's high inventory turnover ratio suggests that it is effectively converting inventory into sales.

Regarding receivables turnover, Kimberly-Clark Corp. has also demonstrated a stable performance with a slight increase over the quarters. A higher receivables turnover ratio signifies that the company is efficiently collecting revenues from its customers.

In terms of payables turnover, the company has shown some fluctuations but has generally maintained a stable turnover ratio. A lower payables turnover ratio suggests that the company takes longer to pay its suppliers, which could indicate strong bargaining power or favorable credit terms.

Unfortunately, data for the working capital turnover ratio is not available from the provided table. This ratio could provide further insights into how effectively Kimberly-Clark Corp. is utilizing its working capital to generate sales.

Overall, based on the available activity ratios, Kimberly-Clark Corp. appears to be managing its assets and liabilities efficiently, which is essential for sustaining healthy operational performance and profitability.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	52.60	51.60	53.48	53.37
Days of sales outstanding (DSO)	days	38.25	41.12	42.38	43.66	41.16	42.25	44.84	46.62	41.74	45.52	45.15	42.65	42.65	41.09	39.23	48.82	44.75	45.61	47.55	47.15
Number of days of payables	days	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	89.77	85.33	86.25	86.99

Kimberly-Clark Corp.'s activity ratios reflect the efficiency with which the company manages its inventory, receivables, and payables.

- Days of Inventory on Hand (DOH) has shown a slight decrease over the past quarters, indicating that the company has been able to sell its inventory more quickly. However, the current level of around 53-59 days suggests that Kimberly-Clark Corp. may still have excess inventory compared to its sales levels.

- Days of Sales Outstanding (DSO) have fluctuated between 38 to 46 days, indicating that the company takes approximately 38-46 days to collect its accounts receivable. A lower DSO is generally preferable as it signifies quicker collection of sales, which improves cash flow.

- Number of Days of Payables has ranged from 94 to 101 days, showing that Kimberly-Clark Corp. takes around 94-101 days to pay its creditors. A higher number of days of payables can indicate that the company is taking longer to settle its outstanding bills, which may be strategic but can also be detrimental if it harms supplier relationships.

Overall, Kimberly-Clark Corp. has made progress in managing its inventory and accounts receivable efficiently, but it may need to monitor its payables to ensure optimal working capital management.

Long-term

	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
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
Total asset turnover	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	1.21	1.23	1.20	1.21

The long-term activity ratios of Kimberly-Clark Corp. provide insights into the efficiency of the company in generating revenue relative to its investment in fixed assets and total assets over time.

1. Fixed Asset Turnover Ratio: The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher ratio indicates better asset utilization. Kimberly-Clark Corp.'s fixed asset turnover ratio has been relatively stable around 2.58 to 2.65 over the past eight quarters. This suggests that the company has been effectively using its fixed assets to generate sales, maintaining a consistent level of efficiency in this aspect.

2. Total Asset Turnover Ratio: The total asset turnover ratio indicates how well a company generates sales from its total assets. A higher ratio implies that the company is more efficient in using its assets to generate revenue. Kimberly-Clark Corp.'s total asset turnover ratio has shown a slight increasing trend from 1.06 in Q1 2022 to 1.18 in Q4 2023. This improvement indicates that the company has been more efficient in generating sales from its total assets, reflecting a positive trend in asset utilization efficiency.

In conclusion, Kimberly-Clark Corp. has demonstrated consistent and improving efficiency in utilizing both its fixed and total assets to generate revenue over the analyzed quarters. This indicates effective asset management and operational performance, which is essential for long-term sustainability and profitability.