Stock Analysis on Net
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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Kimberly-Clark Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2020 375.72% = 13.42% × 27.99
Dec 31, 2019 — = 14.11% × —
Dec 31, 2018 — = 9.71% × —
Dec 31, 2017 362.16% = 15.04% × 24.09
Dec 31, 2016 — = 14.83% × —

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).

Three-Component Disaggregation of ROE

Kimberly-Clark Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 375.72% = 12.29% × 1.09 × 27.99
Dec 31, 2019 — = 11.69% × 1.21 × —
Dec 31, 2018 — = 7.63% × 1.27 × —
Dec 31, 2017 362.16% = 12.48% × 1.21 × 24.09
Dec 31, 2016 — = 11.90% × 1.25 × —

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).

Five-Component Disaggregation of ROE

Kimberly-Clark Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 375.72% = 0.78 × 0.92 × 17.14% × 1.09 × 27.99
Dec 31, 2019 — = 0.79 × 0.91 × 16.23% × 1.21 × —
Dec 31, 2018 — = 0.75 × 0.88 × 11.60% × 1.27 × —
Dec 31, 2017 362.16% = 0.75 × 0.91 × 18.47% × 1.21 × 24.09
Dec 31, 2016 — = 0.70 × 0.91 × 18.72% × 1.25 × —

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).

Two-Component Disaggregation of ROA

Kimberly-Clark Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2020 13.42% = 12.29% × 1.09
Dec 31, 2019 14.11% = 11.69% × 1.21
Dec 31, 2018 9.71% = 7.63% × 1.27
Dec 31, 2017 15.04% = 12.48% × 1.21
Dec 31, 2016 14.83% = 11.90% × 1.25

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2020 year is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Kimberly-Clark Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2020 13.42% = 0.78 × 0.92 × 17.14% × 1.09
Dec 31, 2019 14.11% = 0.79 × 0.91 × 16.23% × 1.21
Dec 31, 2018 9.71% = 0.75 × 0.88 × 11.60% × 1.27
Dec 31, 2017 15.04% = 0.75 × 0.91 × 18.47% × 1.21
Dec 31, 2016 14.83% = 0.70 × 0.91 × 18.72% × 1.25

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2020 year is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Kimberly-Clark Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2020 12.29% = 0.78 × 0.92 × 17.14%
Dec 31, 2019 11.69% = 0.79 × 0.91 × 16.23%
Dec 31, 2018 7.63% = 0.75 × 0.88 × 11.60%
Dec 31, 2017 12.48% = 0.75 × 0.91 × 18.47%
Dec 31, 2016 11.90% = 0.70 × 0.91 × 18.72%

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).

The primary reason for the increase in net profit margin ratio over 2020 year is the increase in operating profitability measured by EBIT margin ratio.