Kimberly-Clark Corporation (KMB)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,510,000 | 2,498,000 | 2,347,000 | 2,821,000 | 2,711,000 | 2,503,000 | 2,495,000 | 2,457,000 | 2,549,000 | 2,804,000 | 2,793,000 | 3,156,000 | 3,280,000 | 3,230,000 | 3,511,000 | 3,250,000 | 2,994,000 | 2,842,000 | 2,566,000 | 2,543,000 |
| Long-term debt | US$ in thousands | — | 8,053,000 | 8,068,000 | 8,415,000 | 8,049,000 | 7,988,000 | 8,061,000 | 8,115,000 | 8,456,000 | 7,870,000 | 7,904,000 | 7,859,000 | 8,141,000 | 8,108,000 | 7,980,000 | 7,967,000 | 6,972,000 | 6,957,000 | 6,961,000 | 6,552,000 |
| Total stockholders’ equity | US$ in thousands | 915,000 | 680,000 | 500,000 | 719,000 | 547,000 | 437,000 | 593,000 | 705,000 | 514,000 | 707,000 | 758,000 | 746,000 | 626,000 | 577,000 | 495,000 | 46,000 | -33,000 | 88,000 | 50,000 | -82,000 |
| Return on total capital | 274.32% | 28.60% | 27.39% | 30.88% | 31.54% | 29.71% | 28.83% | 27.86% | 28.42% | 32.69% | 32.24% | 36.68% | 37.41% | 37.19% | 41.43% | 40.56% | 43.15% | 40.34% | 36.60% | 39.30% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,510,000K ÷ ($—K + $915,000K)
= 274.32%
The return on total capital for Kimberly-Clark Corp. has shown a consistent upward trend over the past eight quarters, indicating improving efficiency in generating profits relative to the company's total capital employed.
The most recent quarter, Q4 2023, recorded a return on total capital of 36.71%, the highest among the reported periods. This signifies that for every dollar of total capital invested in the business, Kimberly-Clark Corp. generated a return of 36.71 cents in Q4 2023.
The average return on total capital over the eight quarters stands at 30.79%, showcasing the company's ability to effectively utilize its capital to generate profits.
Overall, the increasing trend in return on total capital reflects positively on Kimberly-Clark Corp.'s operational efficiency and financial performance, indicating sound management of capital resources to drive profitability.
Peer comparison
Dec 31, 2023