Return on Equity (ROE)
since 2005
Calculation
Kimberly-Clark Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Kimberly-Clark Corporation1 | ÷ | Total Kimberly-Clark Corporation stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2020 | 375.72% | = | 100 | × | 2,352) | ÷ | 626) |
| Dec 31, 2019 | — | = | 100 | × | 2,157) | ÷ | (33) |
| Dec 31, 2018 | — | = | 100 | × | 1,410) | ÷ | (287) |
| Dec 31, 2017 | 362.16% | = | 100 | × | 2,278) | ÷ | 629) |
| Dec 31, 2016 | — | = | 100 | × | 2,166) | ÷ | (102) |
| Dec 31, 2015 | — | = | 100 | × | 1,013) | ÷ | (174) |
| Dec 31, 2014 | 209.33% | = | 100 | × | 1,526) | ÷ | 729) |
| Dec 31, 2013 | 44.11% | = | 100 | × | 2,142) | ÷ | 4,856) |
| Dec 31, 2012 | 35.11% | = | 100 | × | 1,750) | ÷ | 4,985) |
| Dec 31, 2011 | 30.31% | = | 100 | × | 1,591) | ÷ | 5,249) |
| Dec 31, 2010 | 31.15% | = | 100 | × | 1,843) | ÷ | 5,917) |
| Dec 31, 2009 | 34.85% | = | 100 | × | 1,884) | ÷ | 5,406) |
| Dec 31, 2008 | 43.58% | = | 100 | × | 1,690) | ÷ | 3,878) |
| Dec 31, 2007 | 34.90% | = | 100 | × | 1,823) | ÷ | 5,224) |
| Dec 31, 2006 | 24.59% | = | 100 | × | 1,500) | ÷ | 6,097) |
| Dec 31, 2005 | 28.22% | = | 100 | × | 1,568) | ÷ | 5,558) |
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), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
Net income exhibited a general trend of stability between 2005 and 2020, with values typically ranging between $1.5 billion and $2.3 billion. A significant temporary decline occurred in 2015, where net income dropped to $1.013 billion, followed by a recovery to $2.352 billion by 2020.
- Equity Capital Structure
- Between 2005 and 2013, stockholders' equity remained relatively stable, fluctuating between $3.88 billion and $6.10 billion. A profound shift in the capital structure began in 2014, marked by a sharp decline in equity to $729 million. For several subsequent years, equity entered negative territory, specifically in 2015, 2016, 2018, and 2019. While equity returned to positive values in 2017 and 2020, the levels remained significantly lower than the historical averages seen prior to 2014.
- Return on Equity (ROE) Dynamics
- From 2005 to 2013, ROE demonstrated a consistent pattern, fluctuating between 24.59% and 44.11%. This period reflects a standard correlation between net earnings and a substantial equity base. Starting in 2014, the ROE figures became highly distorted due to the collapse of the equity denominator. The ratio surged to 209.33% in 2014 and peaked at 375.72% in 2020. These extreme percentages are not indicative of increased operational efficiency but are instead the mathematical result of an exceptionally small or negative equity base relative to stable net income.
- Correlation Between Net Income and Equity
- The divergence between stable net income and volatile stockholders' equity after 2014 suggests a strategic shift in capital management. The occurrence of negative equity alongside positive net income indicates that the company's liabilities exceeded its assets, often a result of aggressive share repurchases or dividend distributions that surpassed retained earnings.
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Comparison to Competitors
Kimberly-Clark Corp., ROE, long-term trends, comparison to competitors
| Kimberly-Clark Corp. | Procter & Gamble Co. | |
|---|---|---|
| Dec 31, 2020 | 375.72% | 28.00% |
| Dec 31, 2019 | — | 8.26% |
| Dec 31, 2018 | — | 18.64% |
| Dec 31, 2017 | 362.16% | 27.77% |
| Dec 31, 2016 | — | 18.33% |
| Dec 31, 2015 | — | 11.27% |
| Dec 31, 2014 | 209.33% | 16.82% |
| Dec 31, 2013 | 44.11% | 16.62% |
| Dec 31, 2012 | 35.11% | 16.95% |
| Dec 31, 2011 | 30.31% | 17.44% |
| Dec 31, 2010 | 31.15% | 20.84% |
| Dec 31, 2009 | 34.85% | 21.29% |
| Dec 31, 2008 | 43.58% | 17.38% |
| Dec 31, 2007 | 34.90% | 15.49% |
| Dec 31, 2006 | 24.59% | 13.80% |
| Dec 31, 2005 | 28.22% | 41.52% |
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), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Kimberly-Clark Corp., ROE, long-term trends, comparison to industry (consumer staples)
| Kimberly-Clark Corp. | Consumer Staples | |
|---|---|---|
| Dec 31, 2020 | 375.72% | 30.98% |
| Dec 31, 2019 | — | 22.71% |
| Dec 31, 2018 | — | 28.05% |
| Dec 31, 2017 | 362.16% | 25.14% |
| Dec 31, 2016 | — | 25.00% |
| Dec 31, 2015 | — | 23.15% |
| Dec 31, 2014 | 209.33% | 23.21% |
| Dec 31, 2013 | 44.11% | 24.09% |
| Dec 31, 2012 | 35.11% | 23.55% |
| Dec 31, 2011 | 30.31% | 23.75% |
| Dec 31, 2010 | 31.15% | 24.19% |
| Dec 31, 2009 | 34.85% | 23.20% |
| Dec 31, 2008 | 43.58% | 22.49% |
| Dec 31, 2007 | 34.90% | 18.15% |
| Dec 31, 2006 | 24.59% | 18.58% |
| Dec 31, 2005 | 28.22% | 22.40% |
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), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).