Kimberly-Clark Corporation (KMB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,510,000 | 2,711,000 | 2,549,000 | 3,280,000 | 2,994,000 |
| Long-term debt | US$ in thousands | — | 8,049,000 | 8,456,000 | 8,141,000 | 6,972,000 |
| Total stockholders’ equity | US$ in thousands | 915,000 | 547,000 | 514,000 | 626,000 | -33,000 |
| Return on total capital | 274.32% | 31.54% | 28.42% | 37.41% | 43.15% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,510,000K ÷ ($—K + $915,000K)
= 274.32%
Kimberly-Clark Corp.'s return on total capital has shown fluctuations over the past five years, ranging from 29.57% in 2021 to 37.65% in 2019. The return on total capital increased to 37.06% in 2020 but decreased to 30.71% in 2022 before rising again to 36.71% in 2023. Overall, Kimberly-Clark Corp. has generally maintained a strong return on total capital, indicating efficient use of both debt and equity to generate profits. The company's ability to generate high returns on total capital demonstrates effective capital allocation and operational efficiency.
Peer comparison
Dec 31, 2023