Name: Kimberly-Clark Corp. (NYSE:KMB) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Kimberly-Clark Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Net income	2,396)	2,197)	1,445)	2,319)	2,219)
Depreciation and amortization	796)	917)	882)	724)	705)
Asset impairments	17)	—)	74)	—)	2)
Stock-based compensation	147)	96)	41)	76)	77)
Deferred income taxes	45)	29)	2)	(69)	(15)
Net (gains) losses on asset dispositions	68)	(193)	52)	21)	6)
Equity companies’ earnings (in excess of) less than dividends paid	(30)	(6)	18)	26)	(4)
Accounts receivable	95)	(116)	33)	(44)	(23)
Inventories	(96)	24)	(127)	(33)	230)
Trade accounts payable	239)	(153)	392)	174)	(61)
Accrued expenses	132)	11)	115)	(102)	26)
Accrued income taxes	42)	(6)	64)	(176)	121)
Derivatives	(9)	1)	30)	(47)	43)
Currency and other	(40)	(49)	(118)	80)	(2)
Operating working capital	363)	(288)	389)	(148)	334)
Postretirement benefits	(28)	13)	(25)	2)	(50)
Other	(45)	(29)	92)	(22)	(42)
Cash provided by operations	3,729)	2,736)	2,970)	2,929)	3,232)
Capital spending	(1,217)	(1,209)	(877)	(785)	(771)
Acquisition, net of cash acquired	(1,083)	(4)	—)	—)	—)
Proceeds from dispositions of property	31)	242)	51)	3)	23)
Investments in time deposits	(753)	(568)	(353)	(214)	(221)
Maturities of time deposits	690)	542)	272)	183)	188)
Other	27)	(45)	5)	(38)	49)
Cash used for investing	(2,305)	(1,042)	(902)	(851)	(732)
Cash dividends paid	(1,451)	(1,408)	(1,386)	(1,359)	(1,311)
Change in short-term debt	(561)	303)	(34)	360)	(908)
Debt proceeds	1,845)	706)	507)	937)	1,293)
Debt repayments	(854)	(707)	(407)	(1,481)	(598)
Proceeds from exercise of stock options	217)	228)	62)	121)	107)
Acquisitions of common stock for the treasury	(700)	(800)	(800)	(911)	(739)
Other	(63)	(114)	(57)	(88)	(29)
Cash used for financing	(1,567)	(1,792)	(2,115)	(2,421)	(2,185)
Effect of exchange rate changes on cash and cash equivalents	4)	1)	(30)	36)	(11)
Change in cash and cash equivalents	(139)	(97)	(77)	(307)	304)
Cash and cash equivalents, beginning of year	442)	539)	616)	923)	619)
Cash and cash equivalents, end of year	303)	442)	539)	616)	923)

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).

Cash flow from operating activities demonstrates overall resilience and stability, with a significant increase in 2020 reaching US$ 3,729 million. While net income showed volatility, particularly with a dip to US$ 1,445 million in 2018, the company maintained a consistent ability to generate operational cash, largely supported by steady depreciation and amortization expenses.

Operating Cash Flow Trends: Cash provided by operations remained strong throughout the period, typically exceeding US$ 2.7 billion annually. The 2020 peak suggests a high efficiency in converting earnings to cash, despite fluctuations in operating working capital, which varied from a high of US$ 389 million in 2018 to a low of negative US$ 288 million in 2019.
Investment and Capital Expenditure: A clear upward trend in capital spending is observed, rising from US$ 771 million in 2016 to US$ 1,217 million in 2020. Investing outflows accelerated sharply in 2020, totaling US$ 2,305 million, driven primarily by a substantial net acquisition of US$ 1,083 million. This indicates a strategic shift toward inorganic growth and increased infrastructure investment toward the end of the period.
Financing and Shareholder Returns: Financing activities are characterized by a consistent commitment to shareholder distributions. Cash dividends paid increased steadily from US$ 1,311 million in 2016 to US$ 1,451 million in 2020. Simultaneously, the company maintained an aggressive share repurchase program, spending between US$ 700 million and US$ 911 million annually on treasury stock acquisitions.
Debt and Liquidity Management: Debt levels were managed through alternating cycles of proceeds and repayments. A significant increase in debt proceeds occurred in 2020, totaling US$ 1,845 million, which likely funded the increased acquisition activity and capital expenditures. Despite these inflows, the ending cash and cash equivalents balance trended downward, falling from US$ 923 million in 2016 to US$ 303 million in 2020.

The overall financial profile indicates a company that utilizes its robust operating cash flow to fund expanding capital requirements and consistent shareholder returns, relying on debt markets to bridge the gap during periods of high investment and acquisition activity.

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