Stock Analysis on Net
Stock Analysis on Net

Kimberly-Clark Corp. (NYSE:KMB)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Income Taxes

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Income Tax Expense (Benefit)

Kimberly-Clark Corp., income tax expense (benefit), continuing operations

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
United States 252  215  177  463  523 
State 81  94  63  52  53 
Other countries 298  238  229  330  361 
Current income taxes 631  547  469  845  937 
United States 62  50  16  (68) (40)
State (16) 22  (3) 31 
Other countries (22) (5) (36) (6)
Deferred income taxes 45  29  (69) (15)
Provision for income taxes 676  576  471  776  922 

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

Item Description The company
Current income taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Kimberly-Clark Corp.’s current income taxes increased from 2018 to 2019 and from 2019 to 2020.
Deferred income taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Kimberly-Clark Corp.’s deferred income taxes increased from 2018 to 2019 and from 2019 to 2020.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Kimberly-Clark Corp.’s provision for income taxes increased from 2018 to 2019 and from 2019 to 2020.

Effective Income Tax Rate (EITR)

Kimberly-Clark Corp., effective income tax rate (EITR) reconciliation

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
U.S. statutory rate applied to income before income taxes 21.00% 21.00% 21.00% 35.00% 35.00%
State income taxes, net of federal tax benefit 2.30% 2.50% 3.70% 1.10% 1.80%
Routine tax incentives -4.30% -3.50% -5.40% -2.70% -4.00%
Net tax cost (benefit) on foreign income 2.70% 1.50% 1.60% -3.80% -2.60%
Valuation allowance 0.70% 1.00% 1.60% -0.10% 0.20%
Nonrecurring capital loss 0.00% -1.80% 0.00% 0.00% 0.00%
Other, net 0.70% 1.00% -2.90% -1.10% 0.20%
Effective income tax rate, before net impact of the Tax Act 23.10% 21.70% 19.60% 28.40% 30.60%
Net impact of the Tax Act 0.00% 0.00% 6.40% -2.50% 0.00%
Effective income tax rate 23.10% 21.70% 26.00% 25.90% 30.60%

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

Item Description The company
Effective income tax rate, before net impact of the Tax Act Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Kimberly-Clark Corp.’s effective income tax rate, before net impact of the Tax Act increased from 2018 to 2019 and from 2019 to 2020.

Components of Deferred Tax Assets and Liabilities

Kimberly-Clark Corp., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Pension and other postretirement benefits 239  253  252  312  499 
Tax credits and loss carryforwards 477  411  387  470  450 
Lease liability 117  104  —  —  — 
Other 465  388  449  418  598 
Deferred tax assets, before valuation allowances 1,298  1,156  1,088  1,200  1,547 
Valuation allowances (272) (248) (220) (176) (225)
Deferred tax assets 1,026  908  868  1,024  1,322 
Property, plant and equipment, net (900) (795) (789) (818) (1,079)
Investments in subsidiaries (111) (103) (102) (117) (190)
Goodwill (54) (66) (72) (83) (83)
Intangible assets (159) (4) —  —  — 
Lease asset (117) (105) —  —  — 
Other (146) (104) (143) (186) (268)
Deferred tax liabilities (1,487) (1,177) (1,106) (1,204) (1,620)
Net deferred tax assets (liabilities) (461) (269) (238) (180) (298)

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

Item Description The company
Deferred tax assets, before valuation allowances Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Kimberly-Clark Corp.’s deferred tax assets, before valuation allowances increased from 2018 to 2019 and from 2019 to 2020.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Kimberly-Clark Corp.’s deferred tax assets increased from 2018 to 2019 and from 2019 to 2020.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Kimberly-Clark Corp.’s net deferred tax assets (liabilities) decreased from 2018 to 2019 and from 2019 to 2020.

Deferred Tax Assets and Liabilities, Classification

Kimberly-Clark Corp., deferred tax assets and liabilities, classification

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Deferred tax assets 262  242  220  215  234 
Deferred tax liabilities 723  511  458  395  532 

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Kimberly-Clark Corp.’s deferred tax assets increased from 2018 to 2019 and from 2019 to 2020.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Kimberly-Clark Corp.’s deferred tax liabilities increased from 2018 to 2019 and from 2019 to 2020.

Adjustments to Financial Statements: Removal of Deferred Taxes

Kimberly-Clark Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Adjustment to Total Assets
Total assets (as reported) 17,523  15,283  14,518  15,151  14,602 
Less: Noncurrent deferred tax assets, net 262  242  220  215  234 
Total assets (adjusted) 17,261  15,041  14,298  14,936  14,368 
Adjustment to Total Liabilities
Total liabilities (as reported) 16,626  15,060  14,500  14,208  14,427 
Less: Noncurrent deferred tax liabilities, net 723  511  458  395  532 
Total liabilities (adjusted) 15,903  14,549  14,042  13,813  13,895 
Adjustment to Total Kimberly-Clark Corporation Stockholders’ Equity
Total Kimberly-Clark Corporation stockholders’ equity (as reported) 626  (33) (287) 629  (102)
Less: Net deferred tax assets (liabilities) (461) (269) (238) (180) (298)
Total Kimberly-Clark Corporation stockholders’ equity (adjusted) 1,087  236  (49) 809  196 
Adjustment to Net Income Attributable To Kimberly-Clark Corporation
Net income attributable to Kimberly-Clark Corporation (as reported) 2,352  2,157  1,410  2,278  2,166 
Add: Deferred income tax expense (benefit) 45  29  (69) (15)
Net income attributable to Kimberly-Clark Corporation (adjusted) 2,397  2,186  1,412  2,209  2,151 

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).


Kimberly-Clark Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Kimberly-Clark Corp., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 12.29% 11.69% 7.63% 12.48% 11.90%
Adjusted net profit margin 12.52% 11.85% 7.64% 12.10% 11.82%
Total Asset Turnover
Reported total asset turnover 1.09 1.21 1.27 1.21 1.25
Adjusted total asset turnover 1.11 1.23 1.29 1.22 1.27
Financial Leverage
Reported financial leverage 27.99 24.09
Adjusted financial leverage 15.88 63.73 18.46 73.31
Return on Equity (ROE)
Reported ROE 375.72% 362.16%
Adjusted ROE 220.52% 926.27% 273.05% 1,097.45%
Return on Assets (ROA)
Reported ROA 13.42% 14.11% 9.71% 15.04% 14.83%
Adjusted ROA 13.89% 14.53% 9.88% 14.79% 14.97%

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Kimberly-Clark Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Kimberly-Clark Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation 2,352  2,157  1,410  2,278  2,166 
Net sales 19,140  18,450  18,486  18,259  18,202 
Profitability Ratio
Net profit margin1 12.29% 11.69% 7.63% 12.48% 11.90%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kimberly-Clark Corporation 2,397  2,186  1,412  2,209  2,151 
Net sales 19,140  18,450  18,486  18,259  18,202 
Profitability Ratio
Adjusted net profit margin2 12.52% 11.85% 7.64% 12.10% 11.82%

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

2020 Calculations

1 Net profit margin = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Net sales
= 100 × 2,352 ÷ 19,140 = 12.29%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Kimberly-Clark Corporation ÷ Net sales
= 100 × 2,397 ÷ 19,140 = 12.52%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Kimberly-Clark Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net sales 19,140  18,450  18,486  18,259  18,202 
Total assets 17,523  15,283  14,518  15,151  14,602 
Activity Ratio
Total asset turnover1 1.09 1.21 1.27 1.21 1.25
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 19,140  18,450  18,486  18,259  18,202 
Adjusted total assets 17,261  15,041  14,298  14,936  14,368 
Activity Ratio
Adjusted total asset turnover2 1.11 1.23 1.29 1.22 1.27

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

2020 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 19,140 ÷ 17,523 = 1.09

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 19,140 ÷ 17,261 = 1.11

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 17,523  15,283  14,518  15,151  14,602 
Total Kimberly-Clark Corporation stockholders’ equity 626  (33) (287) 629  (102)
Solvency Ratio
Financial leverage1 27.99 24.09
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 17,261  15,041  14,298  14,936  14,368 
Adjusted total Kimberly-Clark Corporation stockholders’ equity 1,087  236  (49) 809  196 
Solvency Ratio
Adjusted financial leverage2 15.88 63.73 18.46 73.31

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

2020 Calculations

1 Financial leverage = Total assets ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 17,523 ÷ 626 = 27.99

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Kimberly-Clark Corporation stockholders’ equity
= 17,261 ÷ 1,087 = 15.88


Adjusted Return on Equity (ROE)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation 2,352  2,157  1,410  2,278  2,166 
Total Kimberly-Clark Corporation stockholders’ equity 626  (33) (287) 629  (102)
Profitability Ratio
ROE1 375.72% 362.16%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kimberly-Clark Corporation 2,397  2,186  1,412  2,209  2,151 
Adjusted total Kimberly-Clark Corporation stockholders’ equity 1,087  236  (49) 809  196 
Profitability Ratio
Adjusted ROE2 220.52% 926.27% 273.05% 1,097.45%

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

2020 Calculations

1 ROE = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 100 × 2,352 ÷ 626 = 375.72%

2 Adjusted ROE = 100 × Adjusted net income attributable to Kimberly-Clark Corporation ÷ Adjusted total Kimberly-Clark Corporation stockholders’ equity
= 100 × 2,397 ÷ 1,087 = 220.52%


Adjusted Return on Assets (ROA)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation 2,352  2,157  1,410  2,278  2,166 
Total assets 17,523  15,283  14,518  15,151  14,602 
Profitability Ratio
ROA1 13.42% 14.11% 9.71% 15.04% 14.83%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kimberly-Clark Corporation 2,397  2,186  1,412  2,209  2,151 
Adjusted total assets 17,261  15,041  14,298  14,936  14,368 
Profitability Ratio
Adjusted ROA2 13.89% 14.53% 9.88% 14.79% 14.97%

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

2020 Calculations

1 ROA = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total assets
= 100 × 2,352 ÷ 17,523 = 13.42%

2 Adjusted ROA = 100 × Adjusted net income attributable to Kimberly-Clark Corporation ÷ Adjusted total assets
= 100 × 2,397 ÷ 17,261 = 13.89%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.