Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Kimberly-Clark Corp., balance sheet: inventory

US$ in millions

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Raw materials	394)	321)	362)	345)	329)
Work in process	189)	206)	214)	213)	203)
Finished goods	1,202)	1,147)	1,153)	1,105)	1,030)
Supplies and other	263)	271)	275)	303)	280)
Inventories, determined on FIFO or weighted-average cost methods	2,048)	1,945)	2,004)	1,966)	1,842)
Excess of FIFO or weighted-average cost over LIFO cost	(145)	(155)	(191)	(176)	(163)
Inventories	1,903)	1,790)	1,813)	1,790)	1,679)

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Kimberly-Clark Corp. inventories decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Adjustment to Inventories
Inventories at LIFO (as reported)	1,903)	1,790)	1,813)	1,790)	1,679)
Add: Inventory LIFO reserve	145)	155)	191)	176)	163)
Inventories at FIFO (adjusted)	2,048)	1,945)	2,004)	1,966)	1,842)
Adjustment to Current Assets
Current assets (as reported)	5,174)	5,057)	5,041)	5,211)	5,115)
Add: Inventory LIFO reserve	145)	155)	191)	176)	163)
Current assets (adjusted)	5,319)	5,212)	5,232)	5,387)	5,278)
Adjustment to Total Assets
Total assets (as reported)	17,523)	15,283)	14,518)	15,151)	14,602)
Add: Inventory LIFO reserve	145)	155)	191)	176)	163)
Total assets (adjusted)	17,668)	15,438)	14,709)	15,327)	14,765)
Adjustment to Total Kimberly-Clark Corporation Stockholders’ Equity
Total Kimberly-Clark Corporation stockholders’ equity (as reported)	626)	(33)	(287)	629)	(102)
Add: Inventory LIFO reserve	145)	155)	191)	176)	163)
Total Kimberly-Clark Corporation stockholders’ equity (adjusted)	771)	122)	(96)	805)	61)
Adjustment to Net Income Attributable To Kimberly-Clark Corporation
Net income attributable to Kimberly-Clark Corporation (as reported)	2,352)	2,157)	1,410)	2,278)	2,166)
Add: Increase (decrease) in inventory LIFO reserve	(10)	(36)	15)	13)	(20)
Net income attributable to Kimberly-Clark Corporation (adjusted)	2,342)	2,121)	1,425)	2,291)	2,146)

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Kimberly-Clark Corp. inventory value on Dec 31, 2020 would be $2,048) (in millions) if the FIFO inventory method was used instead of LIFO. Kimberly-Clark Corp. inventories, valued on a LIFO basis, on Dec 31, 2020 were $1,903). Kimberly-Clark Corp. inventories would have been $145) higher than reported on Dec 31, 2020 if the FIFO method had been used instead.

Kimberly-Clark Corp., Financial Data: Reported vs. Adjusted

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Kimberly-Clark Corp., adjusted financial ratios

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Current Ratio
Reported current ratio (LIFO)	0.80	0.73	0.77	0.89	0.87
Adjusted current ratio (FIFO)	0.83	0.75	0.80	0.92	0.90
Net Profit Margin
Reported net profit margin (LIFO)	12.29%	11.69%	7.63%	12.48%	11.90%
Adjusted net profit margin (FIFO)	12.24%	11.50%	7.71%	12.55%	11.79%
Total Asset Turnover
Reported total asset turnover (LIFO)	1.09	1.21	1.27	1.21	1.25
Adjusted total asset turnover (FIFO)	1.08	1.20	1.26	1.19	1.23
Financial Leverage
Reported financial leverage (LIFO)	27.99	—	—	24.09	—
Adjusted financial leverage (FIFO)	22.92	126.54	—	19.04	242.05
Return on Equity (ROE)
Reported ROE (LIFO)	375.72%	—	—	362.16%	—
Adjusted ROE (FIFO)	303.76%	1,738.52%	—	284.60%	3,518.03%
Return on Assets (ROA)
Reported ROA (LIFO)	13.42%	14.11%	9.71%	15.04%	14.83%
Adjusted ROA (FIFO)	13.26%	13.74%	9.69%	14.95%	14.53%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Kimberly-Clark Corp. adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Kimberly-Clark Corp. adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Kimberly-Clark Corp. adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Kimberly-Clark Corp. adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Kimberly-Clark Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Current assets	5,174)	5,057)	5,041)	5,211)	5,115)
Current liabilities	6,443)	6,919)	6,536)	5,858)	5,846)
Liquidity Ratio
Current ratio¹	0.80	0.73	0.77	0.89	0.87
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	5,319)	5,212)	5,232)	5,387)	5,278)
Current liabilities	6,443)	6,919)	6,536)	5,858)	5,846)
Liquidity Ratio
Adjusted current ratio²	0.83	0.75	0.80	0.92	0.90

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 5,174 ÷ 6,443 = 0.80

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,319 ÷ 6,443 = 0.83

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Kimberly-Clark Corp. adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation	2,352)	2,157)	1,410)	2,278)	2,166)
Net sales	19,140)	18,450)	18,486)	18,259)	18,202)
Profitability Ratio
Net profit margin¹	12.29%	11.69%	7.63%	12.48%	11.90%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kimberly-Clark Corporation	2,342)	2,121)	1,425)	2,291)	2,146)
Net sales	19,140)	18,450)	18,486)	18,259)	18,202)
Profitability Ratio
Adjusted net profit margin²	12.24%	11.50%	7.71%	12.55%	11.79%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

¹ Net profit margin = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Net sales
= 100 × 2,352 ÷ 19,140 = 12.29%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Kimberly-Clark Corporation ÷ Net sales
= 100 × 2,342 ÷ 19,140 = 12.24%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Kimberly-Clark Corp. adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net sales	19,140)	18,450)	18,486)	18,259)	18,202)
Total assets	17,523)	15,283)	14,518)	15,151)	14,602)
Activity Ratio
Total asset turnover¹	1.09	1.21	1.27	1.21	1.25
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Net sales	19,140)	18,450)	18,486)	18,259)	18,202)
Adjusted total assets	17,668)	15,438)	14,709)	15,327)	14,765)
Activity Ratio
Adjusted total asset turnover²	1.08	1.20	1.26	1.19	1.23

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 19,140 ÷ 17,523 = 1.09

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 19,140 ÷ 17,668 = 1.08

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Kimberly-Clark Corp. adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets	17,523)	15,283)	14,518)	15,151)	14,602)
Total Kimberly-Clark Corporation stockholders’ equity	626)	(33)	(287)	629)	(102)
Solvency Ratio
Financial leverage¹	27.99	—	—	24.09	—
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	17,668)	15,438)	14,709)	15,327)	14,765)
Adjusted total Kimberly-Clark Corporation stockholders’ equity	771)	122)	(96)	805)	61)
Solvency Ratio
Adjusted financial leverage²	22.92	126.54	—	19.04	242.05

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

¹ Financial leverage = Total assets ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 17,523 ÷ 626 = 27.99

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Kimberly-Clark Corporation stockholders’ equity
= 17,668 ÷ 771 = 22.92

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	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation	2,352)	2,157)	1,410)	2,278)	2,166)
Total Kimberly-Clark Corporation stockholders’ equity	626)	(33)	(287)	629)	(102)
Profitability Ratio
ROE¹	375.72%	—	—	362.16%	—
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kimberly-Clark Corporation	2,342)	2,121)	1,425)	2,291)	2,146)
Adjusted total Kimberly-Clark Corporation stockholders’ equity	771)	122)	(96)	805)	61)
Profitability Ratio
Adjusted ROE²	303.76%	1,738.52%	—	284.60%	3,518.03%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

¹ ROE = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 100 × 2,352 ÷ 626 = 375.72%

² Adjusted ROE = 100 × Adjusted net income attributable to Kimberly-Clark Corporation ÷ Adjusted total Kimberly-Clark Corporation stockholders’ equity
= 100 × 2,342 ÷ 771 = 303.76%

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	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation	2,352)	2,157)	1,410)	2,278)	2,166)
Total assets	17,523)	15,283)	14,518)	15,151)	14,602)
Profitability Ratio
ROA¹	13.42%	14.11%	9.71%	15.04%	14.83%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kimberly-Clark Corporation	2,342)	2,121)	1,425)	2,291)	2,146)
Adjusted total assets	17,668)	15,438)	14,709)	15,327)	14,765)
Profitability Ratio
Adjusted ROA²	13.26%	13.74%	9.69%	14.95%	14.53%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

¹ ROA = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total assets
= 100 × 2,352 ÷ 17,523 = 13.42%

² Adjusted ROA = 100 × Adjusted net income attributable to Kimberly-Clark Corporation ÷ Adjusted total assets
= 100 × 2,342 ÷ 17,668 = 13.26%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Kimberly-Clark Corp. adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Kimberly-Clark Corp. (NYSE:KMB)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Kimberly-Clark Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Kimberly-Clark Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)