Kimberly-Clark Corporation (KMB)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -17.16 | -8.06 | -6.33 | -3.27 | -8.20 | 1.34 | 0.13 | 2.57 | 0.90 | 6.62 | 8.08 | 4.74 | -2.16 | 5.68 | 9.59 | 6.87 | 0.14 | 4.81 | 2.95 | 9.58 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.76 + 36.61 – 105.53
= -17.16
The cash conversion cycle of Kimberly-Clark Corporation has shown fluctuation over the periods provided. It is a measure of how long it takes for a company to convert its investment in inventory and other inputs into cash flows from sales.
On average, the company took approximately 3 to 10 days to convert its investments into cash receipts in the period analyzed. However, it is notable that the cash conversion cycle turned negative in some quarters, indicating efficient management of cash flows and a potential ability to generate cash before paying suppliers.
Overall, the trend in the cash conversion cycle seems to reflect Kimberly-Clark Corporation's ability to manage its working capital efficiently, though further analysis would be needed to assess the impact of these fluctuations on the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2024
See also:
Kimberly-Clark Corporation Cash Conversion Cycle (Quarterly Data)