Kimberly-Clark Corp. (NYSE:KMB)

Net operating profit after taxes (NOPAT)

The net operating profit after taxes exhibited fluctuations over the observed period. Starting at $2,399 million at the end of 2016, it increased modestly to $2,464 million in 2017, followed by a notable decline to $1,883 million in 2018. This was succeeded by a recovery in 2019 to $2,321 million and a further increase to $2,602 million in 2020, reaching the highest level within the timeframe. The overall trend indicates some volatility with a dip in 2018 but an upward trajectory in the last two years.

Invested capital

Invested capital showed a relatively stable and slightly increasing trend throughout the period. It started at $11,778 million in 2016, increasing marginally to $11,929 million in 2017. A decrease to $11,239 million was observed in 2018, followed by a moderate rise in 2019 to $11,405 million and a more pronounced increase in 2020 to $12,877 million. This progression suggests consistent investment and capital allocation, with a significant boost in 2020.

Return on invested capital (ROIC)

The return on invested capital remained comparatively strong throughout the five years, though with a noticeable dip in 2018. The ROIC began at 20.37% in 2016, slightly increased to 20.66% in 2017, then declined to 16.75% in 2018, marking the lowest point during the period. A recovery followed with ROIC rising back to 20.35% in 2019 and a marginal decrease to 20.21% in 2020. This pattern mirrors the fluctuations seen in NOPAT, suggesting operational efficiency was temporarily affected in 2018 but largely maintained at a high level before and after that year.

The financial indicators demonstrate notable trends across the five-year period analyzed. The operating profit margin (OPM) starts at 18.96% in 2016, experiences a decrease to 13.03% by 2018, and then recovers steadily to 17.18% in 2020. This suggests some volatility in profit efficiency but a general trend toward stabilization and improvement in the latter years.

The turnover of capital (TO) shows minor fluctuations without a clear directional trend. It declines slightly from 1.55 in 2016 to 1.53 in 2017, rises to a peak of 1.64 in 2018, and then decreases again to 1.49 by 2020. This pattern indicates variations in asset utilization efficiency, with a modest overall decrease by the end of the period.

The measure representing 1 minus the effective cash tax rate (CTR) rises consistently from 69.5% in 2016 to a peak of 79.36% in 2019 and remains elevated at 79.13% in 2020. This trend suggests an increasing ability to retain earnings relative to cash taxes paid, potentially reflecting more favorable tax management or changes in tax regulations.

Return on invested capital (ROIC) mirrors the pattern observed in OPM, declining from 20.37% in 2016 to 16.75% in 2018, then recovering to approximately 20.21% in 2020. The decline and subsequent recovery highlight periods of reduced and improved capital efficiency and profitability, aligning closely with the shifts in operating profit margin.

Operating Profit Margin (OPM)

Experienced a dip in the middle of the period followed by recovery, indicating fluctuations in operational efficiency.

Turnover of Capital (TO)

Showed minor fluctuations with a slight decreasing trend over the five years, suggesting some variability in asset use efficiency.

1 – Effective Cash Tax Rate (CTR)

Displayed a consistent increase, indicating improved retention of earnings after cash taxation.

Return on Invested Capital (ROIC)

Followed a similar trend to OPM, with a decline and subsequent recovery, reflecting capital profitability dynamics.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes exhibited a fluctuating trend over the five-year period. Starting at $3,451 million in 2016, it slightly declined to $3,424 million in 2017. A significant drop occurred in 2018, reducing the profit to $2,408 million. However, a recovery phase followed with increases in 2019 and 2020, reaching $2,925 million and $3,289 million respectively, though the 2020 figure remained below the initial 2016 level.

Net Sales

Net sales were relatively stable across the years, with a gradual upward movement. The figures started at $18,202 million in 2016 and rose marginally each year, reaching $19,140 million by 2020. The changes suggest steady market demand or consistent sales volume throughout the period.

Operating Profit Margin (OPM)

The operating profit margin declined notably between 2016 and 2018, dropping from 18.96% to 13.03%. This indicates a reduction in profitability relative to net sales during that time. Subsequently, there was an improvement in margin percentages in 2019 and 2020, increasing to 15.85% and 17.18% respectively, signaling a partial recovery in operational efficiency or cost management, although the margin had not fully returned to initial levels by 2020.

Net Sales

Net sales exhibited a gradual increase over the five-year period. Starting at 18,202 million US dollars in 2016, the value remained relatively stable through 2017 and 2019, with minor fluctuations, and reached 19,140 million US dollars by the end of 2020. This indicates a steady growth trend, with total sales rising by approximately 5.1% over the period.

Invested Capital

Invested capital showed a more variable pattern. Initially, there was a slight increase from 11,778 million US dollars in 2016 to 11,929 million in 2017. Subsequently, the figure decreased in 2018 to 11,239 million, then modestly increased again through 2019, reaching 11,405 million. A more pronounced rise occurred in 2020, with invested capital increasing to 12,877 million US dollars. This suggests fluctuating investment levels with a notable increase in the final year.

Turnover of Capital (TO)

The turnover of capital ratio, indicative of how efficiently invested capital is used to generate sales, started at 1.55 in 2016 and showed a slight decline to 1.53 in 2017. This was followed by an improvement peaking at 1.64 in 2018 and a slight decrease to 1.62 in 2019. However, in 2020, the ratio dropped more significantly to 1.49. Overall, this points to fluctuating efficiency, with a peak in 2018 and a declining trend in the most recent year, despite increased sales and invested capital.

Cash Operating Taxes

The cash operating taxes exhibit a downward trend from 2016 to 2018, decreasing from 1,053 million US dollars in 2016 to 526 million in 2018. Following this drop, there is a gradual recovery with values rising to 604 million in 2019 and further to 686 million in 2020. Overall, the tax payments decreased sharply initially but began to increase again towards the end of the period.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes shows a fluctuating trend with an initial slight decline from 3,451 million US dollars in 2016 to 3,424 million in 2017. A notable decrease then occurs in 2018, where the NOPBT falls to 2,408 million. This is followed by a recovery phase with the figure rising back to 2,925 million in 2019 and further to 3,289 million in 2020. The data indicates that the operating profitability was negatively affected in 2018 but rebounded in subsequent years.

Effective Cash Tax Rate (CTR)

The effective cash tax rate demonstrates a consistent downward trend from 2016 to 2019. It decreased from 30.5% in 2016 to 28.03% in 2017, then sharply dropped to 21.82% in 2018, and continued to decline to 20.64% in 2019. In 2020, the effective tax rate stabilized slightly, with a minor increase to 20.87%. This decline in tax rate corresponds with the reduction in cash operating taxes and suggests improved tax efficiency or changes in tax legislation affecting the burden over the period analyzed.