Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Kimberly-Clark Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Current Ratio since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Kimberly-Clark Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Short-term Activity Ratios (Summary)
Kimberly-Clark Corp., short-term (operating) activity ratios (quarterly data)
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).
- Inventory Turnover
- The inventory turnover ratio exhibited moderate fluctuations within the observed period. Starting at 6.68 in early 2017, it rose gradually to peak at 8.08 by the first quarter of 2020, indicating improved efficiency in inventory management. However, following this peak, the ratio declined, reaching 6.26 by the first quarter of 2021, suggesting a relative slowdown in inventory turnover toward the end of the timeframe.
- Receivables Turnover
- The receivables turnover ratio showed variability across the quarters without a clear upward or downward trend. It began around 8.19 in early 2017, with intermittent dips and recoveries, including a notable spike to 9.31 in the second quarter of 2020. By the first quarter of 2021, it stabilized around 8.58, reflecting consistent efficiency in the collection of receivables over time.
- Payables Turnover
- The payables turnover ratio demonstrated a generally declining trend. Starting from approximately 4.49 in the first quarter of 2017, it decreased gradually to about 3.89 in the first quarter of 2021. This trend indicates a lengthening in the payment period to suppliers, suggesting that the company may have been taking more time to settle its payables.
- Average Inventory Processing Period
- The average inventory processing period generally decreased from around 55-56 days in early 2017 to a low of 45 days in the first quarter of 2020, implying improved inventory holding efficiency. However, following this low point, the period increased again, reaching 58 days in the first quarter of 2021, indicating a reversal in inventory processing speed.
- Average Receivable Collection Period
- This period fluctuated moderately throughout the timeline, beginning close to 45 days, peaking near 49 days at some points, and declining sharply to 39 days in the second quarter of 2020. Toward the end of the period, it stabilized around 43 days, indicating a relatively steady time frame for collecting receivables after some volatility.
- Operating Cycle
- The operating cycle, representing the sum of inventory and receivables periods, remained relatively stable across the dataset, ranging from approximately 94 to 102 days with minor variations. This steadiness denotes consistent operational processes in managing inventory and receivables combined.
- Average Payables Payment Period
- The average payables payment period showed a gradual lengthening over the analyzed period. From 81 days at the start of 2017, it increased to a peak of 99 days in the fourth quarter of 2020 before slightly decreasing to 94 days in early 2021. This tendency indicates an extension in the time taken to pay suppliers, contributing to potential cash flow management strategies.
- Cash Conversion Cycle
- The cash conversion cycle declined substantially from around 19 days in early 2017 to a low point near 3-5 days in 2020, representing significant improvements in managing working capital by reducing the net time required to convert investments in inventory and receivables into cash. There was a slight increase toward early 2021, with values around 7 days, though it remained much lower than initial levels, indicating enhanced operational efficiency in the latest periods.
Turnover Ratios
Average No. Days
Inventory Turnover
Kimberly-Clark Corp., inventory turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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.
- Cost of products sold
- The cost of products sold exhibited a generally fluctuating pattern from March 2017 through March 2021. Initially, it increased from approximately $2831 million in the first quarter of 2017 to peak around $3407 million by the first quarter of 2018. Following this peak, a slight decline and stabilization occurred around the $3100 million range through the end of 2019. During 2020, there was noticeable volatility in the cost, with values swinging between roughly $2835 million and $3218 million. By the first quarter of 2021, the cost settled at approximately $3154 million, slightly higher than the 2017 levels but lower than the peak reached in 2018.
- Inventories
- Inventories demonstrated a relatively stable upward trend over the analyzed periods. Starting near $1728 million in early 2017, inventories steadily grew, albeit with minor fluctuations, reaching a high of about $1956 million by March 2021. A notable dip occurred in the first quarter of 2020, where inventories dropped to approximately $1539 million, possibly indicating inventory depletion or management adjustments; however, this was followed by a recovery and sustained growth through 2021. Overall, inventories increased by roughly 13% from 2017 to 2021.
- Inventory turnover
- The inventory turnover ratio showed a volatile but generally declining trend after an initial increase. Beginning around 6.68 in the first quarter of 2017, the ratio climbed to a peak exceeding 8.0 in the first quarter of 2020, indicating faster inventory cycling during that time. However, post-peak, the turnover ratio declined to 6.26 by March 2021, the lowest point in the observed dataset, suggesting slower inventory movement in the most recent period. The variations in inventory turnover correlate inversely with inventory levels and cost of goods sold fluctuations, reflecting shifts in operational efficiency or demand patterns.
Receivables Turnover
Kimberly-Clark Corp., receivables turnover calculation (quarterly data)
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
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.
The quarterly financial data reveals several trends regarding net sales, accounts receivable, and receivables turnover over the analyzed periods.
- Net Sales
- Net sales demonstrate relatively stable performance with minor fluctuations across quarters. Initial sales ranged approximately between 4,483 million and 4,640 million US dollars per quarter in 2017, showing moderate growth moving into 2018 with peaks around 4,731 million. Despite slight quarterly variations, sales largely remained within the 4,500-4,600 million band through 2017 to 2019. A notable increase is observed in the first quarter of 2020, climbing to 5,009 million, potentially reflecting a unique market condition, followed by a reduction and subsequent recovery in the later quarters of 2020 and early 2021, stabilizing near 4,700 million US dollars.
- Accounts Receivable, Net
- Accounts receivable exhibit some volatility but generally reflect a gradual upward trend from 2,224 million US dollars in the first quarter of 2017 to peaks around 2,519 million in early 2020. However, there is a significant decline in mid-2020 to approximately 2,024 million, followed by a slow recovery in 2020’s last quarter and early 2021, settling slightly above 2,190 million. This pattern could be indicative of changing credit policies, collection efficiency, or market demand fluctuations.
- Receivables Turnover
- The receivables turnover ratio fluctuates moderately between approximately 7.4 and 9.3 times per year throughout the periods. The ratio generally declines in early 2018 compared to 2017, indicating slower collection cycles during that period. A marked increase is observed in mid-2020, reaching a high of 9.31, suggesting improved efficiency in collecting receivables or changes in sales credit terms. Subsequent quarters maintain levels around 8.5, indicating sustained collection performance post mid-2020 peak.
In summary, net sales show overall stability with significant quarterly consistency interrupted by a notable spike in early 2020. Accounts receivable trend upward until early 2020 before contracting sharply and beginning a recovery phase. Receivables turnover exhibits fluctuations that reflect variations in collection efficiency, with a peak in mid-2020 suggesting a temporary enhancement in receivables management. Collectively, these indicators point to relatively consistent operational performance with some impacts likely tied to external factors influencing demand and credit management in 2020.
Payables Turnover
Kimberly-Clark Corp., payables turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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.
- Cost of Products Sold
- The cost of products sold shows a generally fluctuating but slightly increasing trend over the analyzed periods. Starting at 2,831 million US dollars in March 2017, costs peaked around March 2018 at 3,407 million US dollars, then experienced some decline and fluctuation around the 3,000 million range in subsequent quarters. Notably, there was a decline to 2,835 million in June 2020, followed by an increase again near the 3,000 million range through early 2021. These variations may reflect changes in production levels, input costs, or operational efficiencies.
- Trade Accounts Payable
- Trade accounts payable exhibited a mostly upward trend from March 2017 to December 2020, rising from 2,571 million US dollars to 3,336 million US dollars. After this peak, a slight decrease occurred by March 2021 to 3,152 million US dollars. The steady increase over years indicates either higher purchases on credit or extended payment terms. The intermittent declines suggest occasional adjustments in payment cycles or supplier negotiations, possibly to manage cash flow.
- Payables Turnover Ratio
- The payables turnover ratio indicates the frequency of payments made to suppliers within a year. This ratio showed a gradual decline from 4.49 in March 2017 to 3.69 in December 2020, with minor fluctuations afterward reaching 3.89 in March 2021. The decreasing turnover ratio suggests the company is taking longer to pay its suppliers over time, which may reflect strategic cash management practices or changes in credit agreements. The trend aligns with the observed increase in trade accounts payable balances.
- Overall Observations
- Combining the three metrics, it appears that the company has experienced a growing volume of products sold alongside increasing payables, while extending the payment period to suppliers. The cost management shows some volatility but no dramatic shifts. The elongation of payment terms evidenced by the declining payables turnover ratio might be a deliberate approach to optimize liquidity. However, this could also impact supplier relationships if prolonged excessively. The data implies a focus on operational balancing between procurement, production costs, and payment cycles across the analyzed periods.
Working Capital Turnover
Kimberly-Clark Corp., working capital turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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.
- Working Capital
- The working capital figures show significant volatility across the observed quarters, with mostly negative values indicating that current liabilities consistently exceeded current assets. Over the period from March 2017 to March 2021, working capital deteriorated notably, reaching its lowest points in late 2018 and late 2019. While there was some temporary improvement in mid-2020, the general trend remained negative through the latest quarter in the dataset. These fluctuations may indicate challenges in short-term liquidity management or capital structure adjustments during these periods.
- Net Sales
- Net sales demonstrated a relatively stable pattern, fluctuating modestly quarter-over-quarter but generally maintaining a level between approximately 4,500 million US dollars and 5,000 million US dollars. There were occasional incremental increases, such as the peak quarter in March 2020 with over 5,000 million US dollars in sales. This suggests steady revenue generation, with some seasonal or operational variances but no drastic declines over the analyzed time frame.
- Working Capital Turnover
- No data was provided for the working capital turnover ratio during the periods analyzed. As a result, direct assessment of asset efficiency or operational effectiveness in converting working capital into sales cannot be supported by the given information.
Average Inventory Processing Period
Kimberly-Clark Corp., average inventory processing period calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover Trend
- The inventory turnover ratio demonstrated moderate fluctuations across the reported periods. Starting at 6.68 in the first quarter of 2017, it generally increased, reaching a peak of 8.08 in the first quarter of 2020. However, following this peak, the ratio declined steadily to 6.26 by the first quarter of 2021. This indicates a somewhat cyclic pattern with a significant improvement in inventory turnover efficiency during 2019 to early 2020, followed by a reduction in turnover speed thereafter.
- Average Inventory Processing Period
- The average inventory processing period in days showed an inverse pattern to the inventory turnover ratio, as expected. Initially maintained at approximately 55 to 56 days in 2017, the period shortened notably from 53 days in the first quarter of 2018 to a low of 45 days in the first quarter of 2020. Subsequent periods showed a gradual increase, culminating at 58 days in the first quarter of 2021. This suggests an improvement in inventory management efficiency leading up to early 2020, followed by a slowing down in processing times in later periods.
- Overall Insights
- The data reflects a period of improving inventory efficiency culminating around early 2020 with the highest turnover ratio and shortest inventory processing time. Post this period, a reversal is observed with turnover ratios declining and processing periods extending, potentially indicating changes in inventory demand, supply chain dynamics, or operational shifts during or following the onset of 2020 conditions.
Average Receivable Collection Period
Kimberly-Clark Corp., average receivable collection period calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio shows moderate fluctuations throughout the observed periods. Beginning at 8.19 in the first quarter of 2017, it slightly declined to 7.49 by the first quarter of 2018, indicating a decrease in efficiency in collecting receivables. Subsequently, the ratio improved steadily, reaching a peak of 9.31 in the second quarter of 2020, which suggests an enhanced ability to convert receivables into cash during that period. After this peak, the ratio exhibited a slight decline but remained relatively strong, with a value of 8.58 by the first quarter of 2021. Overall, the trend reflects a general improvement in receivables management in recent quarters compared to the earlier part of the dataset.
- Average Receivable Collection Period
- The average collection period, expressed in days, moves inversely to the receivables turnover ratio as expected. It initially hovered around 45 days in early 2017, then rose to approximately 49 days by the first quarter of 2018, indicating slower collections during that timeframe. The period then decreased steadily, reaching a low of 39 days in the second quarter of 2020, consistent with the peak in receivables turnover. Post this low, the collection period increased modestly but remained below the earlier higher values, measuring 43 days by the first quarter of 2021. This suggests an overall enhancement in collection efficiency in recent quarters, with shorter time frames to collect outstanding receivables compared to earlier periods.
- Overall Insights
- The two metrics collectively indicate that the company experienced some challenges in receivables management during 2017 and early 2018, characterized by a longer collection period and a lower turnover ratio. However, from mid-2018 onward, there is a clear trend towards improved collection efficiency, peaking around mid-2020. This improvement could be reflective of stronger credit policies, enhanced collection efforts, or changes in customer payment behaviors. While slight reversals are noted after the peak, the performance remains better than the initial periods analyzed, suggesting sustained progress in receivables management up to the first quarter of 2021.
Operating Cycle
Kimberly-Clark Corp., operating cycle calculation (quarterly data)
No. days
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows some variability across the reported quarters. It remained relatively stable around 55 days from early 2017 through 2018, with a slight downward trend reaching 51 days during mid to late 2018. In 2019, the period fluctuated moderately between 52 and 54 days. A notable decrease to 45 days occurred in the first quarter of 2020, suggesting improved inventory turnover. However, this was followed by a rise reaching 58 days by the first quarter of 2021, indicating a lengthening in the time inventory remains on hand.
- Average Receivable Collection Period
- The average receivable collection period exhibited minor fluctuations over the observed timeframe. Starting around 45 days in early 2017, it increased to a peak of 49 days early in 2018 and again in early 2020, indicating slower receivable collections during these periods. A significant reduction to 39 days in the second quarter of 2020 suggests an improvement in collections efficiency. The period stabilized around 43 days by the first quarter of 2021, maintaining a generally consistent level compared to previous years.
- Operating Cycle
- The operating cycle remained generally steady at approximately 100 days during 2017 and 2018, with some minor decrease toward 94 days in late 2018. It experienced slight fluctuations around 98-102 days throughout 2019. In 2020, the operating cycle decreased to 94 days in early quarters, coinciding with the reduction in inventory processing and collection periods. Towards the end of 2020 and early 2021, the operating cycle slightly increased again, reaching 101 days, indicating a tendency toward a longer cash conversion cycle in the most recent period.
Average Payables Payment Period
Kimberly-Clark Corp., average payables payment period calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio demonstrated a generally declining trend from March 2017 through March 2021. Initially, the ratio stood at 4.49 in the first quarter of 2017 and decreased to 3.89 by the first quarter of 2021. The highest ratios were observed in the earlier periods, with a gradual decrease reflecting a slower rate of paying off suppliers over time. Notably, some fluctuations are present, for instance, a slight increase in mid-2018, but the overall pattern is downward.
- Average Payables Payment Period
- The average payables payment period, expressed in number of days, exhibited an upward trend over the same timeframe, indicating an increasing duration for settling obligations. The payment period started at 81 days as of March 2017 and extended to 94 days as of March 2021, peaking at 99 days in December 2020. This trend signifies that the company has been lengthening the time it takes to pay its suppliers, which aligns with the concurrent decrease in payables turnover ratio.
- Relationship Between Metrics
- There is an inverse relationship between the two metrics, as expected: as average payment days increased, the payables turnover ratio decreased, indicating slower payments. This pattern suggests that the company has adopted a strategy or experienced conditions leading to delayed supplier payments over the analyzed period. Such behavior might be associated with cash flow management policies or external economic factors influencing payment practices.
- Summary
- Overall, the data reflects a lengthening of the payment cycle over the nearly four-year period, with payables turnover ratio decreasing and average payment period increasing. The consistent nature of this trend suggests a deliberate or systematic change in payment practices, potentially aimed at optimizing working capital or responding to changing operational requirements.
Cash Conversion Cycle
Kimberly-Clark Corp., cash conversion cycle calculation (quarterly data)
No. days
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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.
- Average Inventory Processing Period
- The average inventory processing period showed a general stability around the mid-50 days range from March 2017 through December 2019, fluctuating between 51 and 56 days. However, in 2020, a notable reduction occurred, particularly in the first quarter, dropping to 45 days, the lowest in the observed period. This decline was followed by a return to previous levels near mid-50 days by the end of 2020 and early 2021, reaching 58 days in March 2021, indicating a slight increase in inventory holding duration over time.
- Average Receivable Collection Period
- The average receivable collection period remained relatively steady between 43 and 49 days across the periods. A minor peak was observed in the first quarter of 2018 and again in the first quarter of 2020 with 49 days, suggesting some extension in collections. Subsequently, a pronounced decrease occurred in mid-2020, falling to 39 days, indicating improved efficiency in receivables management. Towards early 2021, the period stabilized around 43 days.
- Average Payables Payment Period
- The average payables payment period demonstrated an overall increasing trend throughout the timeline. Starting around 81 days in early 2017, the period progressively extended, occasionally fluctuating but trending upwards to reach as high as 99 days in the fourth quarter of 2020. The last recorded period in March 2021 showed a slight decrease to 94 days. This lengthening indicates an increased utilization of payment terms or a delay in settling payables over time.
- Cash Conversion Cycle
- The cash conversion cycle exhibited a general downward trend from 19 days in early 2017 to a low of 3 days in mid-2020, reflecting improved efficiency in managing the time between cash outflows and inflows. There was some variability in the latter part of the period with values oscillating between 4 and 13 days before settling near 7 days in early 2021. This reduction suggests efforts to optimize working capital and reduce the cash tied up in the operating cycle.