Stock Analysis on Net
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.

Common-Size Income Statement

Kimberly-Clark Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of products sold -64.36 -67.29 -69.72 -64.11 -63.46
Gross profit 35.64% 32.71% 30.28% 35.89% 36.54%
Marketing, research and general expenses -18.98 -17.64 -18.21 -17.67 -18.27
Other income and (expense), net 0.28 1.14 -0.01 -0.15 -0.04
Operating profit 16.95% 16.21% 12.06% 18.07% 18.22%
Nonoperating expense -0.37 -0.49 -0.88 0.00 0.00
Interest income 0.04 0.06 0.05 0.05 0.06
Interest expense -1.32 -1.41 -1.42 -1.74 -1.75
Income before income taxes and equity interests 15.31% 14.36% 9.81% 16.38% 16.53%
Provision for income taxes -3.53 -3.12 -2.55 -4.25 -5.07
Income before equity interests 11.78% 11.24% 7.26% 12.13% 11.47%
Share of net income of equity companies 0.74 0.67 0.56 0.57 0.73
Net income 12.52% 11.91% 7.82% 12.70% 12.19%
Net income attributable to noncontrolling interests -0.23 -0.22 -0.19 -0.22 -0.29
Net income attributable to Kimberly-Clark Corporation 12.29% 11.69% 7.63% 12.48% 11.90%

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).

The financial performance from 2016 to 2020 is characterized by a significant margin compression in 2018, followed by a steady recovery that restored profitability levels to those seen at the beginning of the period. The volatility is primarily concentrated in the cost of goods sold, while operating expenses remained relatively stable.

Gross Profitability and Cost Management
A notable fluctuation in the cost of products sold is observed, peaking at 69.72% of net sales in 2018 compared to 63.46% in 2016. This spike led to a corresponding decline in gross profit, which dropped to a period low of 30.28% in 2018. By 2020, the cost of products sold returned to 64.36%, restoring the gross profit margin to 35.64%, nearly matching 2016 levels.
Operating Efficiency
Marketing, research, and general expenses demonstrated relative stability, fluctuating within a narrow range between 17.64% and 18.98% of net sales. Because these overhead costs remained constant, the volatility in operating profit was almost entirely driven by the aforementioned shifts in gross margin. Operating profit reached a low of 12.06% in 2018 but recovered to 16.95% by 2020.
Interest and Non-Operating Items
Interest expenses showed a gradual downward trend, decreasing from 1.75% of net sales in 2016 to 1.32% in 2020, suggesting a reduction in the relative burden of debt service over time. Other income and expenses remained negligible for most of the period, with a slight positive outlier in 2019 at 1.14% of net sales.
Net Income Trends
The net income attributable to the corporation mirrored the trajectory of the operating profit. A sharp decline is evident in 2018, where net income fell to 7.63% of net sales from 12.48% in 2017. A recovery followed in 2019 and 2020, ending the period at 12.29%. The provision for income taxes also varied, reaching its lowest point as a percentage of sales in 2018, which partially mitigated the impact of the decreased operating income on the bottom line.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?