Kimberly-Clark Corporation (KMB)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,210,000 | 2,344,000 | 2,681,000 | 2,561,000 | 3,244,000 |
| Total assets | US$ in thousands | 16,546,000 | 17,344,000 | 17,970,000 | 17,837,000 | 17,523,000 |
| Operating ROA | 19.40% | 13.51% | 14.92% | 14.36% | 18.51% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,210,000K ÷ $16,546,000K
= 19.40%
Kimberly-Clark Corporation's operating return on assets (operating ROA) has exhibited some fluctuations over the past five years. The operating ROA decreased from 18.51% as of December 31, 2020, to 14.36% by December 31, 2021, which may indicate a less efficient utilization of assets to generate operating income during that period. However, there was a slight improvement in the operating ROA to 14.92% as of December 31, 2022.
Subsequently, the operating ROA declined to 13.51% by December 31, 2023, suggesting a decrease in the company's ability to generate operating income from its assets. The most recent data point, as of December 31, 2024, shows a significant improvement in the operating ROA to 19.40%, indicating a notable increase in operating efficiency and profitability compared to the previous year.
Overall, Kimberly-Clark Corporation's operating ROA demonstrates variability over the period under review, with both positive and negative movements. It would be advisable for stakeholders to further investigate the factors influencing these fluctuations to assess the company's operational performance and asset utilization effectively.
Peer comparison
Dec 31, 2024