Stock Analysis on Net

Kimberly-Clark Corp. (NYSE:KMB)

This company has been moved to the archive! The financial data has not been updated since April 23, 2021.

Financial Reporting Quality: Aggregate Accruals 

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Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Kimberly-Clark Corp., balance sheet computation of aggregate accruals

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Operating Assets
Total assets 17,523 15,283 14,518 15,151 14,602
Less: Cash and cash equivalents 303 442 539 616 923
Operating assets 17,220 14,841 13,979 14,535 13,679
Operating Liabilities
Total liabilities 16,626 15,060 14,500 14,208 14,427
Less: Debt payable within one year 486 1,534 1,208 953 1,133
Less: Long-term debt, excluding payable within one year 7,878 6,213 6,247 6,472 6,439
Operating liabilities 8,262 7,313 7,045 6,783 6,855
 
Net operating assets1 8,958 7,528 6,934 7,752 6,824
Balance-sheet-based aggregate accruals2 1,430 594 (818) 928
Financial Ratio
Balance-sheet-based accruals ratio3 17.35% 8.21% -11.14% 12.73%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Procter & Gamble Co. -2.96%
Balance-Sheet-Based Accruals Ratio, Industry
Consumer Staples -0.87% 200.00%

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).

1 2020 Calculation
Net operating assets = Operating assets – Operating liabilities
= 17,2208,262 = 8,958

2 2020 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2020 – Net operating assets2019
= 8,9587,528 = 1,430

3 2020 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 1,430 ÷ [(8,958 + 7,528) ÷ 2] = 17.35%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Kimberly-Clark Corp. deteriorated earnings quality from 2019 to 2020.

Cash-Flow-Statement-Based Accruals Ratio

Kimberly-Clark Corp., cash flow statement computation of aggregate accruals

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Kimberly-Clark Corporation 2,352 2,157 1,410 2,278 2,166
Less: Cash provided by operations 3,729 2,736 2,970 2,929 3,232
Less: Cash used for investing (2,305) (1,042) (902) (851) (732)
Cash-flow-statement-based aggregate accruals 928 463 (658) 200 (334)
Financial Ratio
Cash-flow-statement-based accruals ratio1 11.26% 6.40% -8.96% 2.74%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Procter & Gamble Co. -11.18%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Consumer Staples -1.88% -2.87%

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).

1 2020 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 928 ÷ [(8,958 + 7,528) ÷ 2] = 11.26%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Kimberly-Clark Corp. deteriorated earnings quality from 2019 to 2020.