Kimberly-Clark Corporation (KMB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.47% | 30.83% | 30.87% | 35.64% | 32.71% |
| Operating profit margin | 11.49% | 13.29% | 13.20% | 16.95% | 16.21% |
| Pretax margin | 10.87% | 12.04% | 11.82% | 15.82% | 14.81% |
| Net profit margin | 8.65% | 9.59% | 9.35% | 12.29% | 11.69% |
Kimberly-Clark Corp.'s profitability ratios, as reflected in its gross profit margin, operating profit margin, pretax margin, and net profit margin, show fluctuating trends over the past five years. The gross profit margin has shown some variability, ranging from 30.80% in 2021 to 35.64% in 2020. This ratio indicates the company's ability to generate profits from its core operations after deducting the cost of goods sold.
The operating profit margin has also exhibited fluctuations, with a low of 13.08% in 2022 and a high of 16.67% in 2020. This metric reflects the company's efficiency in managing its operating expenses relative to its revenue, highlighting its ability to control costs and generate operating income.
The pretax margin, which indicates the company's profitability before taxes, has ranged from 10.85% in 2023 to 16.05% in 2020. A downward trend in this ratio may suggest increased tax burdens or changes in the company's operating efficiency.
Lastly, the net profit margin, representing the company's bottom line profitability after taxes and all other expenses, has also shown variability, ranging from 8.63% in 2023 to 12.29% in 2020. A declining trend in this ratio may indicate challenges in maintaining profitability after accounting for all costs.
Overall, Kimberly-Clark Corp.'s profitability ratios suggest that the company has experienced fluctuations in its ability to generate profits over the past five years, which could be attributed to various factors such as changes in operating expenses, revenue fluctuations, and tax implications. Further analysis of these ratios in conjunction with other financial metrics would provide a more comprehensive understanding of the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.51% | 14.92% | 14.36% | 18.51% | 19.57% |
| Return on assets (ROA) | 10.17% | 10.76% | 10.17% | 13.42% | 14.11% |
| Return on total capital | 274.32% | 31.54% | 28.42% | 37.41% | 43.15% |
| Return on equity (ROE) | 192.79% | 353.56% | 352.92% | 375.72% | — |
Kimberly-Clark Corp.'s profitability ratios show some fluctuations over the past five years. The operating return on assets (Operating ROA) has generally been relatively stable, ranging from 14.51% to 17.71%, indicating the company's ability to generate operating profits from its assets.
The return on assets (ROA) has shown some variability, with a slight decrease from 14.11% in 2019 to 10.17% in 2023. This ratio signifies how efficiently the company is utilizing its assets to generate profits.
The return on total capital has also displayed fluctuations, with a high of 37.65% in 2019 and a low of 29.57% in 2021. This ratio reflects the overall return generated from both debt and equity capital invested in the business.
The return on equity (ROE) has shown significant variability, with a substantial decrease from 375.72% in 2020 to 192.79% in 2023. The ROE indicates the profitability of the company from the perspective of its shareholders' equity.
Overall, while Kimberly-Clark Corp.'s profitability ratios have shown some fluctuations over the years, the company has generally maintained strong returns on its assets, capital, and equity. It is essential for investors and analysts to monitor these ratios to assess the company's financial performance and effectiveness in generating profits.