Kimberly-Clark Corporation (KMB)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,400,000 | 20,175,000 | 19,400,000 | 19,140,000 | 18,450,000 |
| Receivables | US$ in thousands | 2,135,000 | 2,280,000 | 2,207,000 | 2,235,000 | 2,263,000 |
| Receivables turnover | 9.56 | 8.85 | 8.79 | 8.56 | 8.15 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $20,400,000K ÷ $2,135,000K
= 9.56
The receivables turnover ratio for Kimberly-Clark Corp. has shown a consistent increasing trend over the past five years, from 8.15 in 2019 to 9.57 in 2023. This indicates that the company is collecting its accounts receivables more efficiently each year.
A higher receivables turnover ratio generally suggests that the company is effectively managing its credit policies and collecting outstanding receivables promptly. It indicates that customers are paying their bills faster, which is a positive sign for the company's liquidity and cash flow.
However, it's important to note that while a high receivables turnover ratio is generally favorable, an excessively high ratio could also signify overly stringent credit policies that may be affecting sales growth. Therefore, a balance needs to be struck between efficient receivables management and not losing out on potential sales opportunities.
Overall, the increasing trend in Kimberly-Clark Corp.'s receivables turnover ratio reflects positively on the company's ability to efficiently collect payments from customers, contributing to its overall financial health and liquidity position.
Peer comparison
Dec 31, 2023