Kimberly-Clark Corp. (KMB) | Short-term (Operating) Activity

Ratios (Summary)

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

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Turnover Ratios
Inventory turnover	8.97	8.85	8.32	9.40	7.79
Receivables turnover	7.97	8.01	7.99	7.45	7.79
Payables turnover	8.62	8.73	8.95	9.96	12.11
Working capital turnover	42.30	23.53	19.95	20.31	18.30
Average No. of Days
Average inventory processing period	41	41	44	39	47
Add: Average receivable collection period	46	46	46	49	47
Operating cycle	86	87	90	88	94
Less: Average payables payment period	42	42	41	37	30
Cash conversion cycle	44	45	49	51	64

Source: Based on data from Kimberly-Clark Corp. Annual Reports

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as revenue divided by inventory.	Kimberly-Clark Corp.'s inventory turnover improved from 2010 to 2011 and from 2011 to 2012.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Kimberly-Clark Corp.'s receivables turnover improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Payables turnover	An activity ratio calculated as revenue divided by payables.	Kimberly-Clark Corp.'s payables turnover declined from 2010 to 2011 and from 2011 to 2012.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Kimberly-Clark Corp.'s working capital turnover improved from 2010 to 2011 and from 2011 to 2012.
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.'s average inventory processing period improved from 2010 to 2011 and from 2011 to 2012.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnoverd.	Kimberly-Clark Corp.'s average receivable collection period improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Kimberly-Clark Corp.'s operating cycle improved from 2010 to 2011 and from 2011 to 2012.
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.	Kimberly-Clark Corp.'s average payables payment period increased from 2010 to 2011 and from 2011 to 2012.
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.'s cash conversion cycle improved from 2010 to 2011 and from 2011 to 2012.

Inventory Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Net sales	21,063	20,846	19,746	19,115	19,415
Inventories	2,348	2,356	2,373	2,033	2,493
Inventory Turnover, Comparison to Industry
Kimberly-Clark Corp.¹	8.97	8.85	8.32	9.40	7.79
Industry, Consumer Goods	9.77	10.72	10.21	9.72	10.28

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Inventory turnover = Net sales ÷ Inventories
= 21,063 ÷ 2,348 = 8.97

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as revenue divided by inventory.	Kimberly-Clark Corp.'s inventory turnover improved from 2010 to 2011 and from 2011 to 2012.

Receivables Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Net sales	21,063	20,846	19,746	19,115	19,415
Accounts receivable, net	2,642	2,602	2,472	2,566	2,492
Receivables Turnover, Comparison to Industry
Kimberly-Clark Corp.¹	7.97	8.01	7.99	7.45	7.79
Industry, Consumer Goods	11.35	12.67	11.57	13.32	12.66

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Receivables turnover = Net sales ÷ Accounts receivable, net
= 21,063 ÷ 2,642 = 7.97

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Kimberly-Clark Corp.'s receivables turnover improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

Payables Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Net sales	21,063	20,846	19,746	19,115	19,415
Trade accounts payable	2,443	2,388	2,206	1,920	1,603
Payables Turnover, Comparison to Industry
Kimberly-Clark Corp.¹	8.62	8.73	8.95	9.96	12.11
Industry, Consumer Goods	10.66	12.96	11.60	15.48	13.10

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Payables turnover = Net sales ÷ Trade accounts payable
= 21,063 ÷ 2,443 = 8.62

Ratio	Description	The company
Payables turnover	An activity ratio calculated as revenue divided by payables.	Kimberly-Clark Corp.'s payables turnover declined from 2010 to 2011 and from 2011 to 2012.

Working Capital Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Current assets	6,589	6,283	6,328	5,864	5,813
Less: Current liabilities	6,091	5,397	5,338	4,923	4,752
Working capital	498	886	990	941	1,061
Net sales	21,063	20,846	19,746	19,115	19,415
Working Capital Turnover, Comparison to Industry
Kimberly-Clark Corp.¹	42.30	23.53	19.95	20.31	18.30
Industry, Consumer Goods	23.29	23.46	12.88	26.61	39.68

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Working capital turnover = Net sales ÷ Working capital
= 21,063 ÷ 498 = 42.30

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Kimberly-Clark Corp.'s working capital turnover improved from 2010 to 2011 and from 2011 to 2012.

Average Inventory Processing Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Inventory turnover	8.97	8.85	8.32	9.40	7.79
Average Inventory Processing Period (no. of days), Comparison to Industry
Kimberly-Clark Corp.¹	41	41	44	39	47
Industry, Consumer Goods	37	34	36	38	36

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.97 = 41

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.'s average inventory processing period improved from 2010 to 2011 and from 2011 to 2012.

Average Receivable Collection Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Receivables turnover	7.97	8.01	7.99	7.45	7.79
Average Receivable Collection Period (no. of days), Comparison to Industry
Kimberly-Clark Corp.¹	46	46	46	49	47
Industry, Consumer Goods	32	29	32	27	29

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.97 = 46

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnoverd.	Kimberly-Clark Corp.'s average receivable collection period improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

Operating Cycle

No. of days

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Average inventory processing period	41	41	44	39	47
Average receivable collection period	46	46	46	49	47
Operating Cycle, Comparison to Industry
Kimberly-Clark Corp.¹	86	87	90	88	94
Industry, Consumer Goods	70	63	67	65	64

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= 41 + 46 = 86

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Kimberly-Clark Corp.'s operating cycle improved from 2010 to 2011 and from 2011 to 2012.

Average Payables Payment Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Payables turnover	8.62	8.73	8.95	9.96	12.11
Average Payables Payment Period (no. of days), Comparison to Industry
Kimberly-Clark Corp.¹	42	42	41	37	30
Industry, Consumer Goods	34	28	31	24	28

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.62 = 42

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.	Kimberly-Clark Corp.'s average payables payment period increased from 2010 to 2011 and from 2011 to 2012.

Cash Conversion Cycle

No. of days

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Average inventory processing period	41	41	44	39	47
Average receivable collection period	46	46	46	49	47
Average payables payment period	42	42	41	37	30
Cash Conversion Cycle, Comparison to Industry
Kimberly-Clark Corp.¹	44	45	49	51	64
Industry, Consumer Goods	35	35	36	41	36

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2012 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 41 + 46 – 42 = 44

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.'s cash conversion cycle improved from 2010 to 2011 and from 2011 to 2012.