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.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Kimberly-Clark Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,602 2,321 1,883 2,464 2,399
Invested capital2 12,877 11,405 11,239 11,929 11,778
Performance Ratio
ROIC3 20.21% 20.35% 16.75% 20.66% 20.37%
Benchmarks
ROIC, Competitors4
Procter & Gamble Co. 12.65% 4.19% 9.16%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,602 ÷ 12,877 = 20.21%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Kimberly-Clark Corp. ROIC improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Decomposition of ROIC

Kimberly-Clark Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2020 20.21% = 17.18% × 1.49 × 79.13%
Dec 31, 2019 20.35% = 15.85% × 1.62 × 79.36%
Dec 31, 2018 16.75% = 13.03% × 1.64 × 78.18%
Dec 31, 2017 20.66% = 18.75% × 1.53 × 71.97%
Dec 31, 2016 20.37% = 18.96% × 1.55 × 69.50%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2020 year is the decrease in efficiency measured by turnover of capital (TO) ratio.


Operating Profit Margin (OPM)

Kimberly-Clark Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,602 2,321 1,883 2,464 2,399
Add: Cash operating taxes2 686 604 526 960 1,053
Net operating profit before taxes (NOPBT) 3,289 2,925 2,408 3,424 3,451
 
Net sales 19,140 18,450 18,486 18,259 18,202
Profitability Ratio
OPM3 17.18% 15.85% 13.03% 18.75% 18.96%
Benchmarks
OPM, Competitors4
Procter & Gamble Co. 22.81% 9.38% 20.71%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 3,289 ÷ 19,140 = 17.18%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Kimberly-Clark Corp. OPM improved from 2018 to 2019 and from 2019 to 2020.

Turnover of Capital (TO)

Kimberly-Clark Corp., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net sales 19,140 18,450 18,486 18,259 18,202
Invested capital1 12,877 11,405 11,239 11,929 11,778
Efficiency Ratio
TO2 1.49 1.62 1.64 1.53 1.55
Benchmarks
TO, Competitors3
Procter & Gamble Co. 0.70 0.75 0.72

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).

1 Invested capital. See details »

2 2020 Calculation
TO = Net sales ÷ Invested capital
= 19,140 ÷ 12,877 = 1.49

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Kimberly-Clark Corp. TO deteriorated from 2018 to 2019 and from 2019 to 2020.

Effective Cash Tax Rate (CTR)

Kimberly-Clark Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,602 2,321 1,883 2,464 2,399
Add: Cash operating taxes2 686 604 526 960 1,053
Net operating profit before taxes (NOPBT) 3,289 2,925 2,408 3,424 3,451
Tax Rate
CTR3 20.87% 20.64% 21.82% 28.03% 30.50%
Benchmarks
CTR, Competitors4
Procter & Gamble Co. 21.01% 40.67% 38.93%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 686 ÷ 3,289 = 20.87%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Kimberly-Clark Corp. CTR decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.