vvincii we show the working

← Kimberly Clark

The business behind the dividend

MeasureKMBMedianFormula
Return on equity134.6%11.7%Net income ÷ shareholders’ equity
Return on capital employed27.1%10.1%Operating income ÷ (equity + total debt)
Owner earnings$1.69bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$1.64bn$746.10mOperating cash flow − capital expenditure
Operating margin14.3%15.0%Operating income ÷ revenue
Net margin12.3%10.2%Net income ÷ revenue
Debt to equity4.77x0.79xTotal debt ÷ shareholders’ equity
Interest cover9.18x4.43xOperating income ÷ interest expense
Current ratio0.75x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.37x1.78xOperating cash flow ÷ net income

Not computed here: Long-term debt to working capital — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity134.6%303.0%192.8%353.6%352.9%375.7%362.2%352.9%
Return on capital employed27.1%32.7%21.7%29.9%28.2%36.1%38.8%31.1%41.7%46.3%31.1%
Operating margin14.3%16.1%11.2%13.3%13.2%16.9%16.2%12.1%18.3%18.5%14.3%
Net margin12.3%15.1%10.3%9.6%9.3%12.3%11.7%7.6%12.4%11.8%11.7%
Debt to equity4.77x8.83x8.73x15.40x16.68x13.36x11.80x11.80x
Current ratio0.75x0.80x0.82x0.78x0.82x0.80x0.73x0.77x0.89x0.87x0.80x
Cash conversion1.37x1.27x2.01x1.41x1.50x1.59x1.27x2.11x1.29x1.49x1.41x

How it compares in consumer staples

Among the 38 consumer staples companies here measured on free cash flow, Kimberly Clark pays out less than 4 of them. The median for that group is 65.1%, against this company’s 101.3%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →