Stock Analysis on Net
Stock Analysis on Net
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Kimberly-Clark Corp. (NYSE:KMB)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Kimberly-Clark Corp., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 1.21 1.27 1.21 1.25 1.25
Adjusted 1.19 1.21 1.15 1.19 1.20
Liquidity Ratio
Current Ratio
Reported 0.73 0.77 0.89 0.87 0.85
Adjusted 0.77 0.82 0.93 0.91 0.89
Solvency Ratios
Debt to Equity
Reported — — 11.80 — —
Adjusted 10.05 11.47 5.96 11.82 11.37
Debt to Capital
Reported 1.00 1.04 0.92 1.01 1.02
Adjusted 0.91 0.92 0.86 0.92 0.92
Financial Leverage
Reported — — 24.09 — —
Adjusted 19.08 21.99 11.90 22.37 21.43
Profitability Ratios
Net Profit Margin
Reported 11.69% 7.63% 12.48% 11.90% 5.45%
Adjusted 11.36% 7.68% 15.75% 10.82% 4.19%
Return on Equity (ROE)
Reported — — 362.16% — —
Adjusted 258.45% 204.91% 215.11% 287.17% 107.30%
Return on Assets (ROA)
Reported 14.11% 9.71% 15.04% 14.83% 6.83%
Adjusted 13.55% 9.32% 18.07% 12.83% 5.01%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Kimberly-Clark Corp.’s adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Kimberly-Clark Corp.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Kimberly-Clark Corp.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Kimberly-Clark Corp.’s adjusted financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Kimberly-Clark Corp.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Kimberly-Clark Corp.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Kimberly-Clark Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net sales 18,450  18,486  18,259  18,202  18,591 
Total assets 15,283  14,518  15,151  14,602  14,842 
Activity Ratio
Total asset turnover1 1.21 1.27 1.21 1.25 1.25
Adjusted
Selected Financial Data (US$ in millions)
Net sales 18,450  18,486  18,259  18,202  18,591 
Adjusted total assets2 15,470  15,236  15,913  15,349  15,557 
Activity Ratio
Adjusted total asset turnover3 1.19 1.21 1.15 1.19 1.20

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Total asset turnover = Net sales ÷ Total assets
= 18,450 ÷ 15,283 = 1.21

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 18,450 ÷ 15,470 = 1.19

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Current Ratio

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 5,057  5,041  5,211  5,115  5,426 
Current liabilities 6,919  6,536  5,858  5,846  6,349 
Liquidity Ratio
Current ratio1 0.73 0.77 0.89 0.87 0.85
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 5,244  5,268  5,425  5,328  5,659 
Adjusted current liabilities3 6,826  6,418  5,858  5,846  6,349 
Liquidity Ratio
Adjusted current ratio4 0.77 0.82 0.93 0.91 0.89

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,057 ÷ 6,919 = 0.73

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 5,244 ÷ 6,826 = 0.77

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Kimberly-Clark Corp.’s adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 7,747  7,455  7,425  7,572  7,775 
Total Kimberly-Clark Corporation stockholders’ equity (33) (287) 629  (102) (174)
Solvency Ratio
Debt to equity1 — — 11.80 — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 8,151  7,946  7,973  8,106  8,257 
Adjusted total stockholders’ equity3 811  693  1,337  686  726 
Solvency Ratio
Adjusted debt to equity4 10.05 11.47 5.96 11.82 11.37

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 7,747 ÷ -33 = —

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity
= 8,151 ÷ 811 = 10.05

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Kimberly-Clark Corp.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 7,747  7,455  7,425  7,572  7,775 
Total capital 7,714  7,168  8,054  7,470  7,601 
Solvency Ratio
Debt to capital1 1.00 1.04 0.92 1.01 1.02
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 8,151  7,946  7,973  8,106  8,257 
Adjusted total capital3 8,962  8,639  9,310  8,792  8,983 
Solvency Ratio
Adjusted debt to capital4 0.91 0.92 0.86 0.92 0.92

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,747 ÷ 7,714 = 1.00

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 8,151 ÷ 8,962 = 0.91

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Kimberly-Clark Corp.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 15,283  14,518  15,151  14,602  14,842 
Total Kimberly-Clark Corporation stockholders’ equity (33) (287) 629  (102) (174)
Solvency Ratio
Financial leverage1 — — 24.09 — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 15,470  15,236  15,913  15,349  15,557 
Adjusted total stockholders’ equity3 811  693  1,337  686  726 
Solvency Ratio
Adjusted financial leverage4 19.08 21.99 11.90 22.37 21.43

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 15,283 ÷ -33 = —

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity
= 15,470 ÷ 811 = 19.08

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Kimberly-Clark Corp.’s adjusted financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation 2,157  1,410  2,278  2,166  1,013 
Net sales 18,450  18,486  18,259  18,202  18,591 
Profitability Ratio
Net profit margin1 11.69% 7.63% 12.48% 11.90% 5.45%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,096  1,420  2,876  1,970  779 
Net sales 18,450  18,486  18,259  18,202  18,591 
Profitability Ratio
Adjusted net profit margin3 11.36% 7.68% 15.75% 10.82% 4.19%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Net profit margin = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Net sales
= 100 × 2,157 ÷ 18,450 = 11.69%

2 Adjusted net income. See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,096 ÷ 18,450 = 11.36%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Kimberly-Clark Corp.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation 2,157  1,410  2,278  2,166  1,013 
Total Kimberly-Clark Corporation stockholders’ equity (33) (287) 629  (102) (174)
Profitability Ratio
ROE1 — — 362.16% — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,096  1,420  2,876  1,970  779 
Adjusted total stockholders’ equity3 811  693  1,337  686  726 
Profitability Ratio
Adjusted ROE4 258.45% 204.91% 215.11% 287.17% 107.30%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
ROE = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 100 × 2,157 ÷ -33 = —

2 Adjusted net income. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total stockholders’ equity
= 100 × 2,096 ÷ 811 = 258.45%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Kimberly-Clark Corp.’s adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kimberly-Clark Corporation 2,157  1,410  2,278  2,166  1,013 
Total assets 15,283  14,518  15,151  14,602  14,842 
Profitability Ratio
ROA1 14.11% 9.71% 15.04% 14.83% 6.83%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,096  1,420  2,876  1,970  779 
Adjusted total assets3 15,470  15,236  15,913  15,349  15,557 
Profitability Ratio
Adjusted ROA4 13.55% 9.32% 18.07% 12.83% 5.01%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 2019 Calculation
ROA = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total assets
= 100 × 2,157 ÷ 15,283 = 14.11%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,096 ÷ 15,470 = 13.55%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kimberly-Clark Corp.’s adjusted ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.