Kimberly-Clark (KMB) Financials

Kimberly-Clark Corp (NYSE: KMB) has demonstrated relatively stable financial performance over the past several years and recent quarters, with a few key trends emerging from the analysis of its income statements, balance sheets, and cash flow statements from 2022 through mid-2025.

Positive trends include:

• Consistent profitability: The company has maintained positive net income throughout the periods analyzed, with consolidated net income ranging from approximately $86 million in Q2 2023 (an outlier low) to peaks over $900 million in some quarters in 2024.
• Strong operating cash flow: Net cash from operating activities remains robust, reaching as high as $1.02 billion in Q2 2024 and generally above $600 million per quarter, supporting operational stability and growth.
• Maintained dividend payments: Kimberly-Clark has consistently paid dividends, with the dividend per share gradually increasing from around $1.16 in early 2023 to $1.26 by Q2 2025, supporting income investors.
• Substantial gross margins: Gross profit remains strong, typically over $1.4 billion per quarter, indicating effective control over cost of revenue relative to sales.
• Investment in property, plant, and equipment: Sustained capital expenditures of roughly $150-$220 million quarterly indicate ongoing investment in the company’s physical assets and growth.

Neutral observations include:

• Sales and revenue fluctuate between roughly $4.1 billion and $5.2 billion quarterly, showing some variability but no clear long-term upward or downward trend.
• Debt levels are significant but relatively stable, with long-term debt hovering around $6.4 billion to $7.9 billion and short-term debt near $500-$800 million, suggesting a consistent capital structure approach.
• Shares outstanding remain fairly stable around 330-340 million, indicating no significant recent share dilution or buyback at scale outside regular repurchases.
• Noncontrolling interests and accumulated other comprehensive income (AOCI) show persistent negative values, not unusual in large multinationals, but impacting total equity conservation.

Potential concerns or negative trends include:

• Increasing operating expenses and marketing costs: Marketing expenses have generally increased to nearly $900 million or more per quarter in 2025 versus under $900 million in earlier years, which may compress margins if not offset by stronger revenue growth.
• Significant fluctuations in net income in 2023, including a sharp low in Q2 2023 (~$86 million), driven partly by impairment charges and higher costs impacting profitability.
• Cash flow from financing activities often negative and sizable, principally due to large dividend payments (around $400 million+ per quarter) and equity repurchases ($30-$60 million per quarter), which might limit financial flexibility.
• Large goodwill and intangible assets on the balance sheet (~$2 billion goodwill and $80-$900 million intangibles), which can pose impairment risk during business challenges as seen with certain impairment charges in 2023.
• Rising interest expense in recent quarters near $67-$76 million, reflecting on debt servicing costs that could pressure net income if leverage increases or rates rise.

Summary: Kimberly-Clark has shown resilient revenue and profitability with strong operating cash generation and a stable balance sheet. The company continues to reward shareholders with steady dividends and modest share repurchases. However, investors should watch the rising operating expenses, periodic earnings volatility, and substantial liabilities including goodwill that could present risks in a downturn. Overall, Kimberly-Clark presents as a steady but moderately challenged consumer products firm focused on maintaining shareholder returns amid industry pressures.