Analysis of Geographic Areas
Kimberly-Clark Corp. operates in 2 regions: North America and Outside North America.
Paying user area
Try for free
Kimberly-Clark Corp. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Earnings (P/E) since 2005
- Analysis of Debt
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Kimberly-Clark Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Area Profit Margin
Kimberly-Clark Corp., profit margin by geographic area
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| North America | |||||
| Outside North America |
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).
- North America Profit Margin
- The profit margin in the North America region exhibited relatively stable performance from 2016 through 2018, with values around the mid-twenties percentage range. Specifically, the margin slightly declined from 24.33% in 2016 to 23.24% in 2018. Starting in 2019, the profit margin showed a notable upward trend, rising to 25.07% and further increasing to 25.87% in 2020. This indicates an overall improvement in profitability in this geographic area after a brief period of slight decline.
- Outside North America Profit Margin
- Profit margins outside North America remained relatively low compared to the North America region, fluctuating between 12.18% and 14.05% over the five-year period. The margin was stable at approximately 14.00% in both 2016 and 2017, then experienced a decline in 2018 to 12.18%. From 2018 onwards, there was a gradual recovery with margins increasing to 12.55% in 2019 and reaching 13.54% in 2020. Despite improvement, these figures remained below the earlier levels seen in 2016 and 2017.
- Comparative Insights
- Overall, the North America segment consistently delivered higher profit margins compared to the non-North America segment throughout the observed period. While both areas showed some fluctuations, North America demonstrated stronger growth dynamics in recent years. Conversely, the margins outside North America showed more volatility and a slower pace of recovery following the dip in 2018. The data suggests a need to focus on fortifying profitability outside North America to align closer with the stronger performance seen domestically.
Area Profit Margin: North America
Kimberly-Clark Corp.; North America; area profit margin calculation
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | |||||
| Net sales | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
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
Area profit margin = 100 × Operating profit ÷ Net sales
= 100 × ÷ =
- Operating Profit
- The operating profit exhibits a slight downward trend from 2016 to 2018, decreasing from $2,322 million to $2,215 million. However, there is a notable recovery in the subsequent years, with operating profit increasing to $2,441 million in 2019 and further to $2,689 million in 2020. Overall, this indicates a return to growth after a period of decline, with the 2020 figure exceeding the 2016 starting point.
- Net Sales
- Net sales show a fluctuating but generally positive pattern over the period. The values start at $9,545 million in 2016 and slightly decrease to $9,390 million in 2017, followed by a mild increase to $9,532 million in 2018. From 2018 onwards, sales consistently rise, reaching $9,735 million in 2019 and considerably increasing to $10,394 million in 2020. This demonstrates a strengthening sales performance, particularly in the last two years reviewed.
- Area Profit Margin
- The area profit margin remains relatively stable with minor fluctuations. It starts at 24.33% in 2016 and nearly maintains that level with 24.31% in 2017. There is a decrease in 2018 to 23.24%, coinciding with the lower operating profit observed that year. Subsequently, the margin improves significantly to 25.07% in 2019 and further to 25.87% in 2020, reflecting enhanced profitability efficiency in relation to sales during the latter years.
- Summary of Trends
- The period from 2016 to 2018 is characterized by a slight decline in operating profit and margin amid relatively stable net sales. Beginning in 2019, a positive turnaround occurs with both operating profit and net sales increasing, alongside an improved profit margin. The data suggests an enhanced operational efficiency and stronger demand or pricing power in the North America segment in the latest years reviewed.
Area Profit Margin: Outside North America
Kimberly-Clark Corp.; Outside North America; area profit margin calculation
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating profit | |||||
| Net sales | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
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
Area profit margin = 100 × Operating profit ÷ Net sales
= 100 × ÷ =
- Operating Profit
- The operating profit shows a fluctuating pattern over the observed periods. Beginning at 1,255 million USD in 2016, it increased slightly to 1,291 million USD in 2017. Subsequently, it declined to 1,127 million USD in 2018 and remained stable in 2019 at the same level. In 2020, the operating profit recovered to 1,221 million USD, indicating a positive turnaround after two years of decline and stability.
- Net Sales
- The net sales figures exhibit relative stability throughout the five-year period. There was a modest increase from 8,964 million USD in 2016 to 9,186 million USD in 2017 and a slight further increase to 9,256 million USD in 2018. However, a decrease was observed in 2019 to 8,981 million USD, followed by a marginal increase to 9,018 million USD in 2020. Overall, net sales remained broadly consistent with minor fluctuations.
- Area Profit Margin
- The area profit margin percentages reveal a downward trend initially, followed by recovery. It started at 14% in 2016, showing a minor increase to 14.05% in 2017. Then, it declined substantially to 12.18% in 2018, signaling a reduced profitability relative to sales. There was a slight improvement to 12.55% in 2019, followed by a more significant recovery to 13.54% in 2020. This suggests improved operational efficiency or cost management in the latter years compared to the earlier decline.
- Summary
- Overall, the data indicates that while net sales remained fairly steady with mild fluctuations, operating profit experienced a decline in the middle years before recovering in 2020. The profit margin mirrored this pattern with a downward trend through 2018, followed by gradual improvement through 2020. This could imply effective strategic adjustments in recent years to enhance profitability despite stable sales figures.
Net sales
Kimberly-Clark Corp., net sales by geographic area
US$ in millions
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| North America | |||||
| Outside North America | |||||
| Intergeographic sales | |||||
| Total |
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).
- North America Net Sales
- The net sales in North America demonstrated a generally positive trend over the five-year period. Starting at $9,545 million in 2016, the figures saw a slight decrease in 2017 to $9,390 million. However, from 2018 onward, there was a steady increase each year, reaching $10,394 million in 2020. This represents an overall growth of approximately 8.9% from 2016 to 2020, indicating a strengthening market performance in this region.
- Outside North America Net Sales
- Sales outside North America experienced minor fluctuations during the period. The sales increased from $8,964 million in 2016 to a peak of $9,256 million in 2018. However, there was a slight decline in 2019 to $8,981 million, followed by a marginal recovery to $9,018 million in 2020. Despite these variations, the sales remained relatively stable, with an overall modest increase of approximately 0.6% across the five years.
- Intergeographic Sales
- Intergeographic sales, which represent transactions between different geographic regions, consistently showed negative values throughout the period, ranging from -$307 million in 2016 to -$272 million in 2020. This negative figure implies internal sales eliminations or transfers. The magnitude of these sales decreased somewhat over the period, indicating potential changes in internal sales strategies or intercompany transactions.
- Total Net Sales
- Total net sales exhibited stability and slight growth over the analyzed timeframe. Beginning at $18,202 million in 2016, total sales rose marginally each year, reaching $19,140 million in 2020. The growth of approximately 5.1% over five years suggests steady overall demand and effective market presence, with the increases primarily driven by stronger North American sales offsetting relatively stable international figures and decreasing intergeographic sales deductions.
Operating profit
Kimberly-Clark Corp., operating profit by geographic area
US$ in millions
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |
|---|---|---|---|---|---|
| North America | |||||
| Outside North America | |||||
| Corporate & Other | |||||
| Other income and (expense), net | |||||
| Total |
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 operating profit data across different geographic areas reveals several notable patterns over the five-year period analyzed.
- North America
- The operating profit in North America remained relatively stable from 2016 through 2018, with a slight downward trend from 2322 million USD in 2016 to 2215 million USD in 2018. However, there was a marked increase in 2019 and 2020, reaching 2441 million USD and then rising further to 2689 million USD. This upward trend in the last two years indicates improved profitability or operational efficiency in this region.
- Outside North America
- The operating profit outside North America shows more variability during the period. After a modest increase from 1255 million USD in 2016 to 1291 million USD in 2017, the figure declined significantly to 1127 million USD in 2018 and remained steady at that amount in 2019. There was a modest recovery in 2020, with profit increasing to 1221 million USD. Overall, this suggests challenges or slower growth in international markets compared to North America.
- Corporate & Other
- Corporate and other expenses show considerable fluctuation, with negative values indicating costs or losses. From relatively stable expenses around -250 million USD in 2016 and 2017, there was a substantial increase in negative impact in 2018, with expenses reaching -1112 million USD, followed by a reduction to -787 million USD in 2019 and further improvement to -720 million USD in 2020. This spike in 2018 suggests the occurrence of significant one-time charges or restructuring costs during that year, with a gradual recovery thereafter.
- Other Income and (Expense), Net
- This category mostly exhibited minor losses or gains in the early years, with values of -8 million USD in 2016, -27 million USD in 2017, and nearly neutral at -1 million USD in 2018. Notably, 2019 experienced a large positive swing to 210 million USD, followed by a smaller but still positive figure of 54 million USD in 2020. This improvement contributed positively to overall profitability during these years.
- Total Operating Profit
- The aggregate operating profit reflects the combination of these factors, starting at 3317 million USD in 2016 and remaining similar in 2017 at 3299 million USD. There is a significant decline in 2018 to 2229 million USD, primarily driven by increased corporate expenses and reduced profits outside North America. Subsequently, the total operating profit rebounded to 2991 million USD in 2019 and further improved to 3244 million USD in 2020, approaching levels seen at the start of the period.
In summary, the data exhibits overall stability and growth in North American operations, contrasted with more volatility and modest recovery outside North America. The substantial impact of increased corporate expenses in 2018 negatively affected total profitability, but a combination of improved corporate expense management and other income enhancements contributed to a recovery in subsequent years. These trends suggest a need for continued focus on mitigating corporate costs and addressing challenges in international markets to sustain and enhance overall profitability.