Kimberly-Clark (Kimberly-Clark) Operating Income

: $3,002 Mil (TTM As of Dec. 2023)

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Kimberly-Clark's Operating Income for the three months ended in Dec. 2023 was $670 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $3,002 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kimberly-Clark's Operating Income for the three months ended in Dec. 2023 was $670 Mil. Kimberly-Clark's Revenue for the three months ended in Dec. 2023 was $4,970 Mil. Therefore, Kimberly-Clark's Operating Margin % for the quarter that ended in Dec. 2023 was 13.48%.

Good Sign:

Kimberly-Clark Corp operating margin is expanding. Margin expansion is usually a good sign.

Kimberly-Clark's 5-Year average Growth Rate for Operating Margin % was 0.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kimberly-Clark's annualized ROC % for the quarter that ended in Dec. 2023 was 16.06%. Kimberly-Clark's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 35.05%.

Kimberly-Clark Operating Income Historical Data

The historical data trend for Kimberly-Clark's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kimberly-Clark Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

2,991.00

3,244.00

2,561.00

2,681.00

3,002.00

Kimberly-Clark Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income																712.00	787.00	771.00	774.00	670.00

Kimberly-Clark Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,002 Mil.

Kimberly-Clark (NYSE:KMB) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Kimberly-Clark's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2680 * ( 1 - 25.24% )	/	( (12113	+	12832)	/ 2 )
=	2003.568	/	12472.5
=	16.06 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	17153	-	6144	-	( 814	-	max(0, 6831	-	5727	+	814	))
=	12113

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	17344	-	5739	-	( 1093	-	max(0, 6930	-	5703	+	1093	))
=	12832

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Kimberly-Clark's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2736	/	( ( (7700 + max(-1231, 0))	+	(7913 + max(-1695, 0)) )	/	2 )
=	2736	/	( ( 7700	+	7913 )	/	2 )
=	2736	/	7806.5
=	35.05 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2298	+	2021	+	594)	-	(6144	+	0	+	0)
=	-1231

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2063	+	1955	+	520)	-	(5739	+	0	+	494)
=	-1695

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Kimberly-Clark's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	670	/	4970
	=	13.48 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Kimberly-Clark Operating Income Related Terms

Thank you for viewing the detailed overview of Kimberly-Clark's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Kimberly-Clark (Kimberly-Clark) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Kimberly-Clark Corp (NYSE:KMB) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

KMB:Mexico KMY:Germany KMY:Germany KMY:Germany KMBB34:Brazil KMBC:Austria KMB:Argentina

Address

P.O. Box 619100, Dallas, TX, USA, 75261-9100

Website

https://www.kimberly-clark.com

With more than half of sales from personal care and another third from tissue products, Kimberly-Clark sits as a leading manufacturer in the tissue and hygiene realm. Its brand mix includes Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Cottonelle. The firm also operates K-C Professional, which partners with businesses to provide safety and sanitary products for the workplace. Kimberly-Clark generates just over of half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.

Executives

Jeffrey P. Melucci	officer: SVP - General Counsel	351 PHELPS DRIVE, IRVING TX 75038
Zackery A Hicks	officer: Chief Digital & Technology Off	C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333
Deeptha Khanna	director	PO BOX 619100, DALLAS TX 75261
Sandra R Karrmann	officer: Chief Human Resources Officer	P.O. BOX 619100, DALLAS TX 75261-9100
Doug Cunningham	officer: President, EMEA	PO BOX 619100, DALLAS TX 75261
Andrew Drexler	officer: Vice President and Controller	C/O GNC HOLDINGS, INC., 300 SIXTH AVENUE, PITTSBURGH PA 15222
Michael D. Hsu	officer: Group Pres., NACP	C/O KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60048
Tristram Wilkinson	officer: President, EMEA	P.O. BOX 619100, DALLAS TX 75261-9100
Tamera Fenske	officer: Chief Supply Chain Officer	PO BOX 619100, DALLAS TX 75261
Sylvia M Mathews	director	P.O. BOX 619100, DALLAS TX 75261
Nelson Urdaneta	officer: Chief Financial Officer	C/O MONDELEZ INTERNATIONAL, INC., THREE PARKWAY NORTH, DEERFIELD IL 60015
Todd Maclin	director	P.O. BOX 619100, DALLAS TX 75261
Ehab Abou-oaf	officer: President KCP	PO BOX 619100, DALLAS TX 75261
Deirdre Mahlan	director	1201 DOWDELL LANE, SAINT HELENA CA 94574
Jaime A Ramirez	director	1000 STANLEY DRIVE, NEW BRITAIN CT 06053