Kimberly-Clark Corp. (NYSE:KMB)

The financial data over the five-year period exhibits notable fluctuations and trends across key profitability and expense ratios expressed as a percentage of net sales.

Cost of Products Sold and Gross Profit

The cost of products sold generally remained high, fluctuating between -63.46% and -69.72%. It peaked in 2018 at -69.72%, indicating an increased cost burden that year, then decreased to -64.36% by 2020. Correspondingly, gross profit margins declined significantly from 36.54% in 2016 to a low of 30.28% in 2018 before recovering to 35.64% in 2020, reflecting an improvement in cost management or pricing strategies after 2018.

Operating Expenses

Marketing, research, and general expenses remained relatively stable, fluctuating narrowly between -17.64% and -18.98%. There was a slight increase in the percentage of net sales dedicated to these expenses in 2020, reaching -18.98%, suggesting heightened investment in marketing or research activities during that year.

Other Income and Operating Profit

Other income and expense showed variability, with negative values in most years except for an unexpected positive spike in 2019 (1.14%). Operating profit mirror the trends in gross profit but show a sharper decline in 2018, dropping to 12.06%. It then improved in 2019 and 2020, reaching 16.95% of net sales, indicating improved operational efficiency or cost control post-2018.

Interest and Nonoperating Items

Interest expense demonstrated a consistent decreasing trend, improving from -1.75% in 2016 to -1.32% in 2020, suggesting better debt management or reduced interest costs. Nonoperating expenses, introduced in 2018, steadily decreased as a percentage of net sales, from -0.88% in 2018 to -0.37% in 2020. Interest income remained minimal and stable over the period.

Income Before Taxes and Net Income

Income before income taxes and equity interests declined sharply from 16.53% in 2016 to 9.81% in 2018, recovering thereafter to 15.31% in 2020. The provision for income taxes also decreased notably in 2018 to 2.55%, compared to higher levels in previous years, and rose slightly in subsequent years. Net income displayed a similar pattern, with a marked dip in 2018 (7.82%) followed by a recovery to approximately 12.5% by 2020, close to 2016 levels.

Equity Interests and Attributable Net Income

The share of net income of equity companies remained relatively steady, ranging from 0.56% to 0.74%, which provided a consistent additional contribution to overall profitability. Net income attributable to noncontrolling interests remained low and stable, slightly under -0.3% throughout the period. Consequently, net income attributable to Kimberly-Clark Corporation followed the general net income trend, showing a dip in 2018 and recovery by 2020.

Overall, the data suggest that 2018 was a challenging year with increased costs and lower profitability, leading to declines across several profit metrics. The subsequent years show a recovery trend marked by improved cost control, reduced interest expenses, and better operational performance. The company's efficiency and profitability metrics appear to be stabilizing near the levels observed at the beginning of the period by 2020.