Stock Analysis on Net

Kimberly-Clark Corp. (NYSE:KMB)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 23, 2021.

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

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Short-term Activity Ratios (Summary)

Kimberly-Clark Corp., short-term (operating) activity ratios (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Turnover Ratios
Inventory turnover
Receivables turnover
Payables turnover
Working capital turnover
Average No. Days
Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).


Inventory Turnover
The inventory turnover ratio exhibits moderate fluctuations over the periods analyzed. Starting around 6.88 in early 2016, it experienced a slight decline and subsequent fluctuations between approximately 6.54 and 7.18 through to late 2018. From 2019 onward, the ratio reached a peak of 8.08 in early 2020 but then declined gradually to about 6.26 by the first quarter of 2021. This indicates variability in how efficiently inventory is managed, with some periods showing improved efficiency followed by slower turnover.
Receivables Turnover
Receivables turnover ratio shows relative stability with some variation. Initially around 8.36 in early 2016, it fluctuated between roughly 7.47 and 9.31 from 2017 through early 2021. Notably, the ratio peaked at 9.31 in mid-2020, suggesting periods where receivables were collected more quickly, and dipped at various points indicating slight slowdowns in collection efficiency.
Payables Turnover
The payables turnover ratio depicts a slow, gradual decline over time, falling from about 4.43 in early 2016 to 3.69 in early 2021. This trend suggests that the company has been extending its payment periods to suppliers or experiencing slower turnover of payables, indicating potentially more favorable or longer credit terms from suppliers.
Average Inventory Processing Period
The average inventory processing period remains fairly consistent, generally staying in a range from around 51 to 58 days across the quarters. Minor fluctuations are observed, with a slight uptick towards late 2020 and early 2021, suggesting a marginal lengthening in the time inventory remains on hand before being sold or used.
Average Receivable Collection Period
The average receivable collection period generally oscillates between 39 and 49 days, with notable improvements occurring around the mid-2020 period, where the collection days decreased to the high 30s and low 40s. This may reflect more effective collection processes or changes in credit policies during that timeframe.
Operating Cycle
The operating cycle shows some variability but remains mostly within the 94 to 102 day range through the periods presented. The cycle appears to have shortened slightly around mid-2018 and mid-2020, which suggests improved operational efficiency in inventory turnover and receivables collection during those times.
Average Payables Payment Period
There is generally an increasing trend in the average payables payment period, rising from around 82 days in early 2016 to as high as 99 days in late 2020. This indicates a strategy or shift towards slower payment of obligations to suppliers, potentially to improve cash flow management.
Cash Conversion Cycle
The cash conversion cycle demonstrates a decreasing trend from 15 days in early 2016 down to single digits during several quarters, with the lowest points at 3 and 5 days around mid to late 2020. A shorter cash conversion cycle indicates improved management of working capital, reducing the length of time between cash outflow for inventory and cash inflow from sales. Some missing data points are noted towards the end of the period, affecting full trend continuity.

Turnover Ratios


Average No. Days


Inventory Turnover

Kimberly-Clark Corp., inventory turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data (US$ in millions)
Cost of products sold
Inventories
Short-term Activity Ratio
Inventory turnover1
Benchmarks
Inventory Turnover, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Inventory turnover = (Cost of products soldQ1 2021 + Cost of products soldQ4 2020 + Cost of products soldQ3 2020 + Cost of products soldQ2 2020) ÷ Inventories
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


The cost of products sold demonstrates fluctuations across the observed periods, showing a general upward trend from early 2016 through 2018, with values increasing from approximately $2,837 million to peaks around $3,400 million. Following this period, the cost slightly declines and stabilizes, with some quarter-to-quarter variability but no definitive long-term increase or decrease through early 2021. The data indicates periods of rising costs possibly linked to operational scale or input price changes, followed by phases of relative cost containment.

Inventories exhibit a somewhat cyclical pattern. Initial values decrease from $1,902 million in early 2016 to about $1,679 million by the end of 2016, indicating potential inventory optimization or sales acceleration. Subsequently, inventories generally increase until mid-2019, reaching nearly $1,857 million, before experiencing some volatility and a brief dip to $1,539 million by mid-2020. Towards the end of the data range, inventories rise again to approximately $1,956 million. This pattern suggests inventory management adjustments potentially influenced by demand variations or supply chain factors.

Inventory turnover ratios are available starting from early 2017. The turnover remains relatively stable with slight fluctuations, generally oscillating between 6.2 and 7.2 times per period. Notably, there are higher turnover values near 8.08 around mid-2020, indicating more efficient inventory utilization during that quarter. However, turnover ratios slightly decline thereafter. Overall, the inventory turnover suggests consistent inventory management efficiency with periodic improvements possibly reflecting operational initiatives or market conditions.

Cost of products sold
Fluctuating within a range but generally increasing through 2016-2018, then stabilizing with minor variation through early 2021.
Inventories
Demonstrates cyclical patterns with initial decline, mid-period increases, variability during 2019-2020, and a rise towards early 2021.
Inventory turnover
Relatively consistent turnover ratios with peak efficiency observed around mid-2020, indicating effective inventory management fluctuations.

Receivables Turnover

Kimberly-Clark Corp., receivables turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data (US$ in millions)
Net sales
Accounts receivable, net
Short-term Activity Ratio
Receivables turnover1
Benchmarks
Receivables Turnover, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Receivables turnover = (Net salesQ1 2021 + Net salesQ4 2020 + Net salesQ3 2020 + Net salesQ2 2020) ÷ Accounts receivable, net
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


Net Sales
Net sales exhibited relative stability over the observed quarters from March 2016 to March 2021, generally fluctuating around the 4500 to 4700 million US dollar range. Although minor quarterly variations occurred, no strong upward or downward trend is discernible until the quarter ending March 2020, when sales surged to approximately 5009 million. This peak was followed by a decline in subsequent quarters, with net sales settling around the 4700 million mark by March 2021.
Accounts Receivable, Net
Accounts receivable values exhibited moderate fluctuations throughout the period. Initial values hovered slightly above 2200 million US dollars, trending upward toward 2377 million by early 2019. A notable peak occurred at the end of the first quarter of 2020, reaching approximately 2519 million, coinciding with the surge in net sales. Subsequently, receivables declined in mid-2020 and slightly recovered but remained below the earlier peak through March 2021. Overall, this reflects some variability, with a possible spike linked to the increase in sales early in 2020.
Receivables Turnover Ratio
The receivables turnover ratio ranged between approximately 7.47 and 9.31 times during the analyzed periods. The ratio demonstrated some volatility, generally oscillating between 7.5 and 8.5. A significant increase occurred in the first and second quarters of 2020, peaking at 9.31, suggesting an improvement in collection efficiency. After these quarters, the ratio stabilized in the mid to high 8 range through early 2021. This indicates that despite fluctuations in accounts receivable and net sales, the company effectively managed receivables turnover, particularly during the early 2020 period when sales peaked.

Payables Turnover

Kimberly-Clark Corp., payables turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data (US$ in millions)
Cost of products sold
Trade accounts payable
Short-term Activity Ratio
Payables turnover1
Benchmarks
Payables Turnover, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Payables turnover = (Cost of products soldQ1 2021 + Cost of products soldQ4 2020 + Cost of products soldQ3 2020 + Cost of products soldQ2 2020) ÷ Trade accounts payable
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


The cost of products sold exhibits fluctuations over the observed quarters, with a general upward trajectory from 2016 through early 2019, followed by a degree of variability. Specifically, the values start at approximately 2,837 million US dollars in March 2016 and increase to a peak around the first quarter of 2018 at 3,407 million. Afterward, this metric experiences periods of decline and increase, reaching 3,154 million in the first quarter of 2021. This pattern indicates instances of both rising production costs and partial containment subsequently.

Trade accounts payable also show a dynamic behavior throughout the same timeframe. Starting at 2,442 million US dollars in March 2016, the payable figure generally trends upwards, peaking around December 2020 at approximately 3,336 million, before falling slightly to 3,152 million in the first quarter of 2021. This consistent rise over time may reflect increased procurement activities or extended credit terms granted by suppliers.

The payables turnover ratio, introduced from the first quarter of 2017, illustrates a decreasing trend over the periods reviewed. Beginning at 4.43 in March 2017, the ratio gradually declines to 3.89 by March 2021. This decreasing turnover ratio suggests that the company is taking longer to settle its payables over time, which could point to a strategic management of cash flows or potential changes in supplier payment policies.

Cost of Products Sold
Shows an overall increasing trend from 2016 to early 2019, with fluctuations thereafter and a moderate decrease towards 2021.
Trade Accounts Payable
Displays a steady increase across the years, peaking near the end of 2020 before a slight regression in early 2021.
Payables Turnover Ratio
Declines steadily over the examined quarters, indicating longer payment cycles or adjustments in accounts payable management.

Working Capital Turnover

Kimberly-Clark Corp., working capital turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data (US$ in millions)
Current assets
Less: Current liabilities
Working capital
 
Net sales
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Working capital turnover = (Net salesQ1 2021 + Net salesQ4 2020 + Net salesQ3 2020 + Net salesQ2 2020) ÷ Working capital
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


The analysis of the quarterly financial data over the period from March 31, 2016, to March 31, 2021, reveals several notable trends in working capital and net sales, along with their relationship as expressed through working capital turnover, for which data is unavailable.

Working Capital
The working capital figures consistently show negative values throughout the period, suggesting that current liabilities exceeded current assets in each quarter. The magnitude of negative working capital fluctuates significantly, with no clear trend of consistent improvement or deterioration. For example, working capital deepened from -240 million USD in March 2016 to a low point around -1697 million USD in September 2018, indicating growing short-term financial obligations relative to current assets. Subsequently, the negative working capital slightly improved and again worsened, reaching -1862 million USD in December 2019. The most recent quarters reflect considerable volatility, with values moving from -27 million USD in September 2020 back to -1551 million USD in March 2021. This volatility may indicate variability in the management of current assets and liabilities or seasonal operational factors.
Net Sales
Net sales show relative stability over the period, with slight fluctuations around the 4500 million USD mark. Beginning at 4476 million USD in March 2016, sales remained generally within the 4500 to 4700 million USD range, peaking at 5009 million USD in March 2020. This peak corresponds with the onset of significant global events in 2020, which may have impacted sales volumes positively. Following this peak, sales declined somewhat but remained above 4600 million USD through early 2021, indicating resilience in revenue generation despite external challenges.
Working Capital Turnover
No data was provided for working capital turnover ratios. Consequently, no conclusions can be drawn regarding the efficiency in using working capital to generate sales over time. Given the negative working capital values, ratio computation might require careful interpretation.

In summary, the company's net sales have demonstrated stability with occasional increases across the examined quarters, while working capital has persistently been negative with considerable fluctuations. This pattern highlights ongoing challenges in managing short-term financial resources relative to operational needs. The absence of working capital turnover data limits a complete assessment of asset efficiency in relation to sales. Additional analysis incorporating more detailed balance sheet items could clarify underlying causes of working capital volatility.


Average Inventory Processing Period

Kimberly-Clark Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data
Inventory turnover
Short-term Activity Ratio (no. days)
Average inventory processing period1
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

2 Click competitor name to see calculations.


The inventory turnover ratio demonstrates fluctuations over the observed periods, starting from a level of 6.88 in March 2016 and generally showing a pattern of modest fluctuations through to March 2021. There is no consistent upward or downward trend; instead, the ratio fluctuates around the mid to high sixes, reaching a peak at 8.08 in March 2020 before falling back to 6.26 by March 2021. This suggests variability in how frequently inventory is sold and replaced over the quarters, with a notable increase in turnover efficiency in early 2020 followed by a decline.

The average inventory processing period, expressed in the number of days, inversely correlates to the inventory turnover ratio and generally remains stable between 51 and 58 days across the periods. In early 2020, the processing period decreases significantly to 45 days, coinciding with the peak in inventory turnover ratio, implying improved speed in inventory management during that quarter. However, this improvement is short-lived as the processing period extends again to 56 and 58 days in subsequent quarters, indicating slower inventory turnover later in the period examined.

Inventory Turnover Ratio
Exhibits moderate volatility with values mostly ranging between 6.5 and 7.2, peaking at 8.08 in March 2020.
Periods of increased turnover correspond to shorter inventory processing times.
The ratio declines after the peak in early 2020, indicating less frequent replenishment of inventory thereafter.
Average Inventory Processing Period
Remains comparatively stable, mainly staying between 51 and 58 days.
Shows a noticeable reduction to 45 days in March 2020, aligning with the highest turnover ratio.
Reverts to longer processing times in later quarters, suggesting a slowdown in inventory movement.

Average Receivable Collection Period

Kimberly-Clark Corp., average receivable collection period calculation (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data
Receivables turnover
Short-term Activity Ratio (no. days)
Average receivable collection period1
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Receivables Turnover
The receivables turnover ratio demonstrates moderate fluctuations over the observed quarterly periods. Beginning from a low point near 7.72 at the end of 2016, it generally oscillates between approximately 7.4 and 8.5 in subsequent quarters. Notably, the ratio peaks at 9.31 in the second quarter of 2020, indicating an enhanced efficiency in collecting receivables during that period. Following this peak, the ratio experiences a slight decline but remains elevated above 8.5 towards early 2021. Overall, the trend suggests a somewhat stable receivables turnover with occasional improvements, especially in 2020.
Average Receivable Collection Period
The average collection period, measured in days, inversely correlates with the receivables turnover ratio. Starting around 44 days in early 2016, it fluctuates mostly between 43 and 49 days across the examined quarters. A notable decrease to 39 days occurs in the first quarter of 2020, coinciding with the peak in receivables turnover ratio, implying quicker collection of receivables during that timeframe. Following this period, collection days marginally increase but maintain a relatively lower level compared to earlier years, stabilizing at 43 days by the first quarter of 2021. This pattern reflects an overall improvement in the company's ability to collect outstanding receivables more rapidly in recent periods.
Summary and Insights
Analyzing both financial metrics together reveals a complementary relationship where improvements in receivables turnover correspond to reductions in the average collection period. The data indicates stable receivables management over time with incremental enhancements in collection efficiency, particularly evident during 2020. The peak in turnover and the simultaneous trough in collection days during this period suggest operational adjustments or external factors that positively influenced receivables performance, enabling faster cash inflows.

Operating Cycle

Kimberly-Clark Corp., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data
Average inventory processing period
Average receivable collection period
Short-term Activity Ratio
Operating cycle1
Benchmarks
Operating Cycle, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =

2 Click competitor name to see calculations.


The analysis of the quarterly financial periods from March 2016 through March 2021 shows distinct trends in inventory management, receivables, and the overall operating cycle.

Average Inventory Processing Period
This metric remained relatively stable from March 2016 to March 2019, fluctuating narrowly between 51 and 56 days. Starting in 2019, there were more noticeable variations, with a decrease to 45 days by March 2020, indicating improved inventory turnover or faster processing. However, from mid-2020 onward, the period increased again, reaching 58 days by the first quarter of 2021. The overall trend suggests occasional adjustments in inventory management, possibly in response to operational or market conditions.
Average Receivable Collection Period
This period showed slight increases and decreases over the timeframe, mostly oscillating between 39 and 49 days. A peak occurred around June 2018 and June 2019 with values near 49 days, followed by a decline to the lowest point of 39 days in March 2020. The decrease in 2020 could indicate improved efficiency in collections or changes in credit policies. Subsequently, values returned to the lower 40s by March 2021, suggesting some stabilization in receivable collections.
Operating Cycle
The operating cycle, calculated as the sum of inventory and receivable periods, remained broadly steady around the 90s over the five-year period. It peaked at 102 days several times between late 2016 and 2019, reflecting longer overall operating duration. In early 2020, it dropped to 94 days and maintained levels close to this range through March 2021. This pattern indicates a slight improvement in operational efficiency during 2020, possibly driven by faster inventory processing and receivable collections, before modestly increasing again towards early 2021.

Average Payables Payment Period

Kimberly-Clark Corp., average payables payment period calculation (quarterly data)

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data
Payables turnover
Short-term Activity Ratio (no. days)
Average payables payment period1
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

2 Click competitor name to see calculations.


The payables turnover ratio exhibits a general declining trend from the first available data point in March 2016 through March 2021. Initially, the ratio is around 4.43 and fluctuates modestly in subsequent quarters but shows a consistent decrease in the latter periods, reaching a low of approximately 3.69 in December 2020 before a slight recovery to 3.89 in March 2021. This trend indicates that the company is turning over its payables less frequently over time, which may imply longer payment cycles or changes in supplier payment terms.

Correspondingly, the average payables payment period, measured in number of days, shows an increasing trend over the analyzed periods. Starting at 82 days in March 2016, this metric increases gradually, peaking at 99 days in December 2020 before slightly falling back to 94 days by March 2021. The extended average payment period aligns with the decreasing payables turnover ratio, reinforcing the interpretation that the company is taking longer to settle its payables.

Overall, the data illustrate a shift toward longer payables settlement durations over the five-year span, suggesting a strategic or operational modification in managing liabilities. This could be a deliberate cash flow management approach or reflect negotiation outcomes with suppliers, but it also warrants attention as it may impact supplier relationships and credit terms.


Cash Conversion Cycle

Kimberly-Clark Corp., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016
Selected Financial Data
Average inventory processing period
Average receivable collection period
Average payables payment period
Short-term Activity Ratio
Cash conversion cycle1
Benchmarks
Cash Conversion Cycle, Competitors2
Procter & Gamble Co.

Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).

1 Q1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + =

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals several trends in the company's inventory, receivables, payables, and cash conversion cycle over the reported periods.

Average Inventory Processing Period
The inventory processing period demonstrates relative stability with minor fluctuations over the reported quarters. Initially rising slightly from 53 days in early 2016 to a peak of 56 days by March 2018, it then slightly decreases and fluctuates around the low to mid-50s. Notable is a drop to 45 days in the first quarter of 2020, indicating more efficient inventory turnover during that period, followed by an increase to 58 days by the first quarter of 2021.
Average Receivable Collection Period
The receivable collection period shows a moderate degree of variability. Starting around the mid-40s in 2016, it peaks at 49 days in the second quarter of 2018 and again in the first quarter of 2020. A notable improvement occurs in the middle of 2020 with a reduction to as low as 39 days, suggesting enhanced effectiveness in collecting receivables during this time. The period ends around 43 days by the first quarter of 2021.
Average Payables Payment Period
The payment period for payables generally trends upward, indicating the company is taking longer to settle its obligations. Starting with values around 82 to 86 days in 2016 and 2017, the period increases to nearly 99 days by the third quarter of 2020 before slightly decreasing to 94 days by the first quarter of 2021. This elongation in the payables period may reflect extended supplier terms or strategic cash retention.
Cash Conversion Cycle
The cash conversion cycle displays notable volatility across the periods. It begins at 15 days in early 2016, fluctuating through mostly low teens. A significant reduction to a low of 3 days occurs during the third quarter of 2020, indicating highly efficient working capital management in that quarter. Although data for some periods near the end of 2020 is missing, the available value of 7 days in the first quarter of 2021 suggests a continued tight management of cash flows.

Overall, the company demonstrates consistent management of inventory and receivables with occasional improvements. The trend of extending payables is pronounced, contributing to a tighter cash conversion cycle in recent periods, notably in 2020. These changes could reflect strategic efforts to optimize liquidity amid varying operational conditions.