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.

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Kimberly-Clark Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Turnover Ratios
Inventory turnover 6.47 6.94 7.11 6.54 6.88
Receivables turnover 8.56 8.15 8.54 7.89 8.36
Payables turnover 3.69 4.06 4.04 4.13 4.43
Working capital turnover
Average No. Days
Average inventory processing period 56 53 51 56 53
Add: Average receivable collection period 43 45 43 46 44
Operating cycle 99 98 94 102 97
Less: Average payables payment period 99 90 90 88 82
Cash conversion cycle 0 8 4 14 15

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Kimberly-Clark Corp. inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Kimberly-Clark Corp. receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Kimberly-Clark Corp. payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Kimberly-Clark Corp. number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Kimberly-Clark Corp. operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Kimberly-Clark Corp. cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Inventory Turnover

Kimberly-Clark Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Cost of products sold 12,318 12,415 12,889 11,706 11,551
Inventories 1,903 1,790 1,813 1,790 1,679
Short-term Activity Ratio
Inventory turnover1 6.47 6.94 7.11 6.54 6.88
Benchmarks
Inventory Turnover, Competitors2
Procter & Gamble Co. 6.41 6.93
Inventory Turnover, Industry
Consumer Staples 7.50 7.42

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
Inventory turnover = Cost of products sold ÷ Inventories
= 12,318 ÷ 1,903 = 6.47

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Kimberly-Clark Corp. inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

Kimberly-Clark Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net sales 19,140 18,450 18,486 18,259 18,202
Accounts receivable, net 2,235 2,263 2,164 2,315 2,176
Short-term Activity Ratio
Receivables turnover1 8.56 8.15 8.54 7.89 8.36
Benchmarks
Receivables Turnover, Competitors2
Procter & Gamble Co. 16.98 13.67
Receivables Turnover, Industry
Consumer Staples 37.54 34.71

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
Receivables turnover = Net sales ÷ Accounts receivable, net
= 19,140 ÷ 2,235 = 8.56

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Kimberly-Clark Corp. receivables turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Payables Turnover

Kimberly-Clark Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Cost of products sold 12,318 12,415 12,889 11,706 11,551
Trade accounts payable 3,336 3,055 3,190 2,834 2,609
Short-term Activity Ratio
Payables turnover1 3.69 4.06 4.04 4.13 4.43
Benchmarks
Payables Turnover, Competitors2
Procter & Gamble Co. 2.92 3.09
Payables Turnover, Industry
Consumer Staples 7.01 7.11

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
Payables turnover = Cost of products sold ÷ Trade accounts payable
= 12,318 ÷ 3,336 = 3.69

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Kimberly-Clark Corp. payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Working Capital Turnover

Kimberly-Clark Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current assets 5,174 5,057 5,041 5,211 5,115
Less: Current liabilities 6,443 6,919 6,536 5,858 5,846
Working capital (1,269) (1,862) (1,495) (647) (731)
 
Net sales 19,140 18,450 18,486 18,259 18,202
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Procter & Gamble Co.
Working Capital Turnover, Industry
Consumer Staples

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
Working capital turnover = Net sales ÷ Working capital
= 19,140 ÷ -1,269 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Kimberly-Clark Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Inventory turnover 6.47 6.94 7.11 6.54 6.88
Short-term Activity Ratio (no. days)
Average inventory processing period1 56 53 51 56 53
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Procter & Gamble Co. 57 53
Average Inventory Processing Period, Industry
Consumer Staples 49 49

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.47 = 56

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Kimberly-Clark Corp. number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

Kimberly-Clark Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Receivables turnover 8.56 8.15 8.54 7.89 8.36
Short-term Activity Ratio (no. days)
Average receivable collection period1 43 45 43 46 44
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Procter & Gamble Co. 21 27
Average Receivable Collection Period, Industry
Consumer Staples 10 11

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.56 = 43

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Kimberly-Clark Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 56 53 51 56 53
Average receivable collection period 43 45 43 46 44
Short-term Activity Ratio
Operating cycle1 99 98 94 102 97
Benchmarks
Operating Cycle, Competitors2
Procter & Gamble Co. 78 80
Operating Cycle, Industry
Consumer Staples 59 60

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 56 + 43 = 99

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Kimberly-Clark Corp. operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Payables Payment Period

Kimberly-Clark Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Payables turnover 3.69 4.06 4.04 4.13 4.43
Short-term Activity Ratio (no. days)
Average payables payment period1 99 90 90 88 82
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Procter & Gamble Co. 125 118
Average Payables Payment Period, Industry
Consumer Staples 52 51

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.69 = 99

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Kimberly-Clark Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 56 53 51 56 53
Average receivable collection period 43 45 43 46 44
Average payables payment period 99 90 90 88 82
Short-term Activity Ratio
Cash conversion cycle1 0 8 4 14 15
Benchmarks
Cash Conversion Cycle, Competitors2
Procter & Gamble Co. -47 -38
Cash Conversion Cycle, Industry
Consumer Staples 7 9

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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 56 + 4399 = 0

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Kimberly-Clark Corp. cash conversion cycle deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.