Financial Analysis Of Kimberly Clark

Satisfactory Essays
Kimberly-Clark (KMB) was founded in 1972 and manufactures and operates in the personal & health care paper products industry. They are a multi-billion dollar corporation, which is well-known for brands such as Huggies, Kleenex, and Scott paper towels. Kimberly Clark currently operates worldwide and services more than 140 countries. KMB two biggest competitors are consumer giants Procter & Gamble (PG) and Johnson & Johnson (JNJ). The financial evaluation of the personal care product industry and the competition within the industry allows Kimberly Clark to evaluate their competiveness. Utilizing the financial statement and ratios creates both short-term and long-term evaluation of risks and returns. Effectively using these Ratio analyses and comparisons will provide a business strategy to leverage efficient use of capital maximize return on investment, assets and equity and the ability to pay debt.
Financial Statements
Income Statement
First, the Income Statement summarizes the company’s revenue and expenses. Revenue is generated from the Kimberly Clark sales of goods to supermarkets, mass merchandisers, drugstores, department stores, and other retail outlets, as well as through distributors and e-commerce. The expenses incurred by Kimberly Clark include cost of goods sold, payroll, taxes and interest. The bottom line of the Income Statement is KMB’s net income. This number indicates to investors (and the Company financial department) whether the company is profitable. Kimberly-Clark net income had decreased from $1,884 million in 2009 to $1,591 million in 2011 to steadily improving from to 2,142 million in 2013.
Balance Sheet
Next, KMB will examine the balance sheet, which must perfectly balance the assets and liabilities...

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... in reduction of stock price due to investors seeking other stock options. A steady dividends payout ratio signifies a solid dividend policy by the company. Currently, Kimberly-Clark Annual Dividends per share is $3.24. Compared to one of the biggest competitors and industry leaders Proctor & Gamble $2.36, this is $0.88 higher. Furthermore, statistics show dividends payouts over the past three years, have seen annual growth, these factors are appealing to investors.

Overall, Kimberly Clark is operationally efficient. They have displayed their awareness to meet there short-term and long-term obligations. This bold well for both creditors and investors seeking to expand their portfolios as well as lend financial assistance to grow the business with limited risk. Kimberly Clark is effectively creating future opportunity while reducing financial risks.
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