Kimberly-Clark Corp. (NYSE:KMB)

The analysis of property, plant, and equipment data over the five-year period reveals several notable trends and fluctuations in various asset categories.

Land

The value of land exhibited minor fluctuation, beginning at 163 million USD in 2016 and generally increasing to 174 million USD by 2020, reflecting a modest upward trend with some slight decreases during the intermediate years.

Buildings

Building assets demonstrated consistent growth from 2,612 million USD in 2016 to 2,932 million USD in 2020. Despite a slight dip in 2018, the overall trend indicates steady capital investment or appreciation in building value during the period.

Machinery and Equipment

This category displayed some volatility, increasing significantly from 13,591 million USD in 2016 to a peak of 14,612 million USD in 2017, followed by declines in 2018 and 2019. However, a recovery was observed in 2020 with a rise to 14,382 million USD, suggesting fluctuations possibly due to asset disposals, upgrades, or changes in production capacity.

Construction in Progress

Investment in construction in progress showed considerable variability. Starting at 488 million USD in 2016, the amount decreased sharply to 300 million USD in 2017 before rising substantially to 699 million USD in 2018 and peaking at 851 million USD in 2019. A slight decrease to 845 million USD occurred in 2020. This pattern indicates ongoing, possibly expanding capital projects with varying completion rates.

Property, Plant and Equipment, Gross

The gross property, plant, and equipment value followed a generally upward trajectory, increasing from 16,854 million USD in 2016 to 18,333 million USD in 2020. This growth correlates with the net increases seen in buildings and machinery, as well as the rise in construction in progress, signifying overall asset base expansion.

Accumulated Depreciation

Accumulated depreciation values ranged from -9,685 million USD in 2016 to -10,291 million USD in 2020, showing slight fluctuations. Notably, depreciation increased until 2018, then modestly decreased in subsequent years, possibly reflecting asset retirements or adjustments in depreciation policies.

Property, Plant and Equipment, Net

Net property, plant, and equipment values exhibited a fluctuating yet generally upward trend. Beginning at 7,169 million USD in 2016, there was an increase to 7,436 million USD in 2017, a decrease to 7,159 million USD in 2018, followed by consecutive increases to 7,450 million USD in 2019 and 8,042 million USD in 2020. This suggests that despite depreciation and asset disposals, the company maintained and grew its net investment in property and equipment over the period.

The data presented reflects the average age ratio of property, plant, and equipment over a five-year period.

Trend Analysis

The average age ratio showed a gradual increase from 58.03% in 2016 to a peak of 60.16% in 2018, indicating that the company's fixed assets were aging during this period.

Following 2018, the ratio decreased to 58.78% in 2019 and further declined to 56.67% in 2020, suggesting a renewal or addition of newer assets relative to older ones.

Insights

The initial rise in average age ratio may reflect a period of limited capital investment or slower asset replacement prior to 2018.

The subsequent downward trend from 2018 to 2020 could imply increased capital expenditures, modernization efforts, or asset disposals that reduced the overall average age of the property, plant, and equipment.

This pattern suggests a strategic shift towards maintaining a newer asset base, which may enhance operational efficiency and reduce maintenance costs.

An analysis of the annual property, plant, and equipment data reveals several noteworthy trends over the five-year period ending in 2020.

Accumulated depreciation

The accumulated depreciation values increased steadily from 9,685 million US dollars in 2016 to a peak of 10,555 million in 2018. Thereafter, it experienced a slight decline each subsequent year, reaching 10,291 million by the end of 2020. This pattern suggests that while depreciation charges have generally grown, there were some periods of reduced depreciation expense or asset disposals affecting the total accumulated amount.

Property, plant, and equipment, gross

The gross value of property, plant, and equipment initially showed an upward trend, rising from 16,854 million US dollars in 2016 to 17,915 million in 2017. This was followed by a modest decline to 17,714 million in 2018, a slight recovery to 17,839 million in 2019, and a further increase to 18,333 million by 2020. Overall, the gross assets have grown moderately over the period, indicating ongoing capital investments with some fluctuations likely due to asset acquisitions and disposals.

Land

The reported value of land assets showed minor fluctuations but generally remained stable, starting at 163 million US dollars in 2016, dipping slightly in subsequent years, and then rising back to 174 million by 2020. This stability reflects the relatively fixed nature of land as a long-term asset.

Average age ratio

The average age ratio of the property, plant, and equipment indicates a gradual aging of assets from 58.03% in 2016, peaking slightly at 60.16% in 2018. After 2018, the ratio declined steadily down to 56.67% by 2020. This trend suggests that the asset base became somewhat older through 2018 but experienced rejuvenation or modernization efforts afterward, leading to a younger overall asset base by 2020.

In summary, the data portrays a company managing its asset base with a balance of continued investment and maintenance reflected in growing gross property values, a nearly stable land asset base, controlled accumulated depreciation, and a recent trend towards a younger average asset age.