Kimberly-Clark Corporation (KMB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.80% | 34.42% | 30.83% | 30.87% | 35.64% |
| Operating profit margin | 16.00% | 11.47% | 13.29% | 13.20% | 16.95% |
| Pretax margin | 15.51% | 10.85% | 12.04% | 11.82% | 15.82% |
| Net profit margin | 12.69% | 8.63% | 9.59% | 9.35% | 12.29% |
Kimberly-Clark Corporation's gross profit margin has exhibited a slight decline from 35.64% in 2020 to 30.87% in 2021 before stabilizing around 30-35% in the following years. This indicates that the company retains a moderate percentage of sales revenue after accounting for the cost of goods sold.
In terms of operating profit margin, there was a notable decrease from 16.95% in 2020 to 13.20% in 2021, with fluctuations around this level in the subsequent years. This suggests that the company's operational efficiency in generating profit from its core business activities has been under some pressure.
The pretax margin further illustrates the company's profitability before accounting for taxes, with a steady decline from 15.82% in 2020 to 10.85% in 2023, followed by an uptick to 15.51% in 2024. This indicates fluctuating levels of profitability before tax over the years.
Analyzing the net profit margin, we observe a decrease from 12.29% in 2020 to 9.35% in 2021, before hovering between 8-13% in the subsequent years, ultimately reaching 12.69% in 2024. The net profit margin reveals the company's bottom-line profitability after all expenses, including taxes, interest, and other costs.
Overall, Kimberly-Clark Corporation's profitability ratios reflect fluctuations in its ability to generate profits from its operations over the years, with varying levels of margin retention at different stages. Additional analysis of the company's strategies, cost management, and market conditions would provide further insights into the factors influencing its profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.40% | 13.51% | 14.92% | 14.36% | 18.51% |
| Return on assets (ROA) | 15.38% | 10.17% | 10.76% | 10.17% | 13.42% |
| Return on total capital | 40.82% | 28.21% | 31.54% | 28.42% | 37.41% |
| Return on equity (ROE) | 302.98% | 192.79% | 353.56% | 352.92% | 375.72% |
Kimberly-Clark Corporation's profitability ratios show varying levels of performance over the years.
1. Operating Return on Assets (Operating ROA) has fluctuated, starting at 18.51% in 2020, decreasing to 14.36% in 2021, then increasing to 14.92% in 2022, before declining to 13.51% in 2023, and finally jumping to 19.40% in 2024. This ratio indicates how efficiently the company is generating operating profits from its assets.
2. Return on Assets (ROA) also shows a similar pattern, starting at 13.42% in 2020, dropping to 10.17% in 2021 and 2023, peaking at 15.38% in 2024. This ratio assesses the company's ability to generate profits from its total assets.
3. Return on Total Capital has been relatively high, with a notable peak at 40.82% in 2024. This ratio reflects how well the company is generating returns from both equity and debt capital.
4. Return on Equity (ROE) has displayed significant fluctuations, starting at an exceptionally high 375.72% in 2020, then gradually decreasing over the years, with a slight increase to 302.98% in 2024. ROE illustrates the company's ability to generate profits from shareholders' equity.
Overall, Kimberly-Clark Corporation's profitability ratios demonstrate a mix of performance levels, indicating the company's varying degrees of efficiency in utilizing its assets and equity to generate profits over the years.