Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Kimberly-Clark Corp., short-term (operating) activity ratios
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
| 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 | 7.68 | 7.56 | — | — | — | |
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
| 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 | 36.51 | 33.81 | — | — | — | |
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
| 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 | 7.02 | 7.10 | — | — | — | |
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
| 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
| 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 | 48 | 48 | — | — | — | |
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
| 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
| 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 | 58 | 59 | — | — | — | |
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
| 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
| 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 | 6 | 8 | — | — | — | |
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 + 43 – 99 = 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. |