Kimberly-Clark Corporation (KMB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,380,000 | 2,510,000 | 2,711,000 | 2,549,000 | 3,280,000 |
| Long-term debt | US$ in thousands | 7,440,000 | 7,982,000 | 8,049,000 | 8,456,000 | 8,141,000 |
| Total stockholders’ equity | US$ in thousands | 840,000 | 915,000 | 547,000 | 514,000 | 626,000 |
| Return on total capital | 40.82% | 28.21% | 31.54% | 28.42% | 37.41% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,380,000K ÷ ($7,440,000K + $840,000K)
= 40.82%
Kimberly-Clark Corporation has demonstrated fluctuating performance in terms of Return on Total Capital over the past five years. Starting at 37.41% on December 31, 2020, the ratio decreased to 28.42% by December 31, 2021. However, there was a notable improvement in 2022, with the Return on Total Capital increasing to 31.54%, before dropping back to 28.21% by December 31, 2023. The most recent data point shows a significant increase to 40.82% by December 31, 2024. Overall, while the ratio has experienced variability, it is essential to analyze the underlying factors driving these changes to assess the company's efficiency in generating returns relative to its total capital employed.
Peer comparison
Dec 31, 2024