Kimberly-Clark Corporation (KMB)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,344,000 | 2,681,000 | 2,561,000 | 3,244,000 | 2,991,000 |
| Total assets | US$ in thousands | 17,344,000 | 17,970,000 | 17,837,000 | 17,523,000 | 15,283,000 |
| Operating ROA | 13.51% | 14.92% | 14.36% | 18.51% | 19.57% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,344,000K ÷ $17,344,000K
= 13.51%
Kimberly-Clark Corp.'s operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA increased to 17.71%, marking a significant improvement from the previous year's 14.68%. However, this increase was not a consistent trend, as in 2021, the operating ROA was slightly lower at 14.51%. Looking further back, in 2020 and 2019, the operating ROA stood at 18.20% in both years.
The variability in Kimberly-Clark Corp.'s operating ROA suggests changes in the efficiency of the company's operations in generating profits relative to its asset base. The uptick in 2023 may indicate improved operational performance, potentially driven by factors such as cost management, revenue growth, or asset utilization efforts. Conversely, the fluctuations over the years might point to challenges or changes in the business environment that impacted the company's ability to generate returns from its assets.
Analyzing the trend in operating ROA over time can provide insights into the company's operational effectiveness, profitability, and asset management strategies. Investors and stakeholders can use this information to assess Kimberly-Clark Corp.'s performance and its ability to generate value from its asset investments.
Peer comparison
Dec 31, 2023