The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin declined from 11.69% in 2019 to 8.63% in 2023.
The average EBIT Margin for the period under analysis was 14.44%, with 2021 and 2020 performing the worst and best, respectively.
In the current year, Kimberly-Clark was able to cover its interest liabilities 8.57 times – compared to 2019 when it was 11.47 times.
The Capital turnover stood at 1.94 times in 2023 from 2.26 in 2019, implying a low performance on Capital of the business in relation to revenue.
Profitability
The revenue of Kimberly-Clark has fluctuated year on year. The revenue decreased by 3.74% between 2019 and 2020 and a further 1.57% decrease was recorded between 2020 and 2021. There also occurred a decrease of 1.27% between 2022 and 2023 (the current period).
Kimberly-Clark’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio increased from 0.73:1 to 0.82:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Kimberly-Clark is both equity and debt financed.
The debt-to-equity (D/E) ratio has been fluctuating year on year. The gearing position of the company appears to be high as it stood at 8.73 in the current year.
