Kimberly-Clark Corp. (KMB)
Analysis of Profitability Ratios
Beginner level
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Kimberly-Clark Corp., profitability ratios
Based on: 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), 10-K (filing date: 2015-02-18).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Kimberly-Clark Corp.’s gross profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Kimberly-Clark Corp.’s operating profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Kimberly-Clark Corp.’s net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | |
| ROA | A profitability ratio calculated as net income divided by total assets. | Kimberly-Clark Corp.’s ROA improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Gross Profit Margin
Kimberly-Clark Corp., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 5,597 | 6,553 | 6,651 | 6,624 | 6,683 | |
| Net sales | 18,486 | 18,259 | 18,202 | 18,591 | 19,724 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 30.28% | 35.89% | 36.54% | 35.63% | 33.88% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Colgate-Palmolive Co. | 59.39% | 60.05% | 60.04% | 58.62% | 58.51% | |
| Estée Lauder Cos. Inc. | 79.22% | 79.39% | 80.63% | 80.51% | 80.32% | |
| Nike Inc. | 43.84% | 44.58% | 46.24% | 45.97% | 44.77% | |
Based on: 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), 10-K (filing date: 2015-02-18).
1 2018 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 5,597 ÷ 18,486 = 30.28%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Kimberly-Clark Corp.’s gross profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Operating Profit Margin
Kimberly-Clark Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | 2,229 | 3,299 | 3,317 | 1,613 | 2,521 | |
| Net sales | 18,486 | 18,259 | 18,202 | 18,591 | 19,724 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 12.06% | 18.07% | 18.22% | 8.68% | 12.78% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Colgate-Palmolive Co. | 23.76% | 23.22% | 25.25% | 17.39% | 20.59% | |
| Estée Lauder Cos. Inc. | 15.00% | 14.31% | 14.30% | 14.90% | 16.66% | |
| Nike Inc. | 12.21% | 13.83% | 13.91% | 13.64% | 13.24% | |
| Operating Profit Margin, Sector | ||||||
| Personal Goods | 14.77% | 16.68% | 17.22% | 13.40% | 15.29% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Goods | 9.78% | 13.54% | 12.78% | 11.75% | 10.72% | |
Based on: 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), 10-K (filing date: 2015-02-18).
1 2018 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 2,229 ÷ 18,486 = 12.06%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Kimberly-Clark Corp.’s operating profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Net Profit Margin
Kimberly-Clark Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kimberly-Clark Corporation | 1,410 | 2,278 | 2,166 | 1,013 | 1,526 | |
| Net sales | 18,486 | 18,259 | 18,202 | 18,591 | 19,724 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 7.63% | 12.48% | 11.90% | 5.45% | 7.74% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Colgate-Palmolive Co. | 15.44% | 13.10% | 16.06% | 8.63% | 12.62% | |
| Estée Lauder Cos. Inc. | 8.10% | 10.56% | 9.90% | 10.10% | 10.98% | |
| Nike Inc. | 5.31% | 12.34% | 11.61% | 10.70% | 9.69% | |
| Net Profit Margin, Sector | ||||||
| Personal Goods | 8.15% | 12.26% | 12.31% | 8.89% | 10.03% | |
| Net Profit Margin, Industry | ||||||
| Consumer Goods | 8.18% | 9.62% | 10.50% | 9.13% | 7.91% | |
Based on: 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), 10-K (filing date: 2015-02-18).
1 2018 Calculation
Net profit margin = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Net sales
= 100 × 1,410 ÷ 18,486 = 7.63%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Kimberly-Clark Corp.’s net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Return on Equity (ROE)
Kimberly-Clark Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kimberly-Clark Corporation | 1,410 | 2,278 | 2,166 | 1,013 | 1,526 | |
| Total Kimberly-Clark Corporation stockholders’ equity | (287) | 629 | (102) | (174) | 729 | |
| Profitability Ratio | ||||||
| ROE1 | — | 362.16% | — | — | 209.33% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Colgate-Palmolive Co. | — | — | — | — | 190.39% | |
| Estée Lauder Cos. Inc. | 23.63% | 28.49% | 31.20% | 29.89% | 31.24% | |
| Nike Inc. | 19.70% | 34.17% | 30.67% | 25.76% | 24.88% | |
| ROE, Sector | ||||||
| Personal Goods | 48.55% | 56.40% | 61.23% | 42.57% | 45.93% | |
| ROE, Industry | ||||||
| Consumer Goods | 22.22% | 24.72% | 28.06% | 24.52% | 25.89% | |
Based on: 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), 10-K (filing date: 2015-02-18).
1 2018 Calculation
ROE = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 100 × 1,410 ÷ -287 = —
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. |
Return on Assets (ROA)
Kimberly-Clark Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kimberly-Clark Corporation | 1,410 | 2,278 | 2,166 | 1,013 | 1,526 | |
| Total assets | 14,518 | 15,151 | 14,602 | 14,842 | 15,526 | |
| Profitability Ratio | ||||||
| ROA1 | 9.71% | 15.04% | 14.83% | 6.83% | 9.83% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Colgate-Palmolive Co. | 19.74% | 15.97% | 20.14% | 11.57% | 16.20% | |
| Estée Lauder Cos. Inc. | 8.82% | 10.80% | 12.08% | 13.22% | 15.30% | |
| Nike Inc. | 8.58% | 18.23% | 17.57% | 15.15% | 14.48% | |
| ROA, Sector | ||||||
| Personal Goods | 11.09% | 15.63% | 16.53% | 11.93% | 13.71% | |
| ROA, Industry | ||||||
| Consumer Goods | 5.14% | 6.00% | 6.87% | 6.24% | 6.23% | |
Based on: 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), 10-K (filing date: 2015-02-18).
1 2018 Calculation
ROA = 100 × Net income attributable to Kimberly-Clark Corporation ÷ Total assets
= 100 × 1,410 ÷ 14,518 = 9.71%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Kimberly-Clark Corp.’s ROA improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |