Kimberly-Clark Corporation (KMB)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -8.21 | 1.33 | 0.12 | 2.56 | 0.90 | 6.62 | 8.08 | 4.74 | -2.16 | 5.68 | 9.59 | 6.87 | 0.14 | 4.81 | 2.95 | 9.58 | 7.58 | 11.87 | 14.79 | 13.52 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 53.50 + 38.25 – 99.96
= -8.21
The cash conversion cycle of Kimberly-Clark Corp. fluctuated over the past eight quarters, ranging from -8.11 days to 8.09 days. A negative cash conversion cycle can suggest that the company is efficiently managing its working capital by collecting receivables quickly and paying suppliers at a slower pace.
In Q4 2023, the company had a negative cash conversion cycle of -8.11 days, indicating a rapid conversion of inventory into cash. This was a significant improvement from the previous quarters when the company had positive cash conversion cycles. In Q2 and Q3 2022, the company had relatively higher cash conversion cycles of 8.09 days and 6.63 days, respectively, which might indicate inefficiencies in managing working capital during those periods.
Overall, the trend in the cash conversion cycle for Kimberly-Clark Corp. shows variability over the quarters, possibly reflecting changes in the company's inventory management, accounts receivable, and accounts payable processes. It is essential for the company to continue monitoring and optimizing its cash conversion cycle to ensure efficient use of working capital and maximize liquidity.
Peer comparison
Dec 31, 2023
See also:
Kimberly-Clark Corporation Cash Conversion Cycle (Quarterly Data)