Revenue Analysis
Total and Operating Revenue: KMB has shown a fluctuation in operating and total revenue over the period, with the latest quarter (Q1 2024) recording $5.149 billion, an increase from $4.970 billion in Q4 2023 and $5.132 billion in Q3 2023. This indicates a rising trend in quarterly revenue.
Gross Profit Margins: Gross profit has been increasing, reaching $1.911 billion in the latest quarter from $1.737 billion in Q4 2023 and $1.838 billion in Q3 2023. The gross profit margin also reflects a slight increase, suggesting improved efficiency in managing production costs.
Cost Management
Cost of Revenue: The cost of revenue has been relatively stable, with minor fluctuations, suggesting stable production costs. The cost of revenue was $3.238 billion in the most recent quarter, compared to $3.233 billion and $3.294 billion in previous quarters.
Operating Expense and Total Expenses: Operating expense and total expenses have seen a marginal increase, aligning with the increase in revenue. This includes a noticeable allocation to Selling, General and Administration expenses implying significant operational investments.
Profitability Analysis
EBITDA and Operating Income: EBITDA increased to $1.033 billion in the latest quarter from $871 million in Q4 2023. Operating income followed a similar upward trend, going from $670 million to $853 million, indicating better operational management and profitability.
Pretax Income and Net Income: There has been strong growth in pretax income and net income, with net income rising to $647 million in the latest quarter from $509 million in Q4 2023. This growth supports a healthy bottom line growth for KMB.
Cash Flow Indicators
Reconciled Depreciation: Reconciled depreciation expenses are maintained at approximately $185-$189 million every quarter, indicating consistent capital expenditure on asset renewal and maintenance.
Interest Expense: Interest expense has slightly reduced from $74 million in Q3 2023 to $67 million in Q1 2024, reflecting better debt management or reduced borrowing costs.
Taxation
Tax Rate, Tax Provision, and Tax Effect of Unusual Items: The tax rate has shown variation, which reflects the impact of operational adjustments and fiscal policies affecting the company. Tax provisions correspondingly adjusted, with a notable impact from unusual items marked in Q3 2023 that has affected net tax provisioning.
Shareholder Metrics
Diluted and Basic EPS: Both diluted and basic EPS have shown an increase, demonstrating the company’s improving profitability. For example, diluted EPS rose from 1.50 in Q4 2023 to 1.91 in Q1 2024.
Average Shares and Net Income Available to Common Stockholders: Diluted average shares remained stable around 338-339 million. Net Income available to common stockholders mirrors the net income, emphasizing stable earnings distribution.
Conclusion
KMB’s financial performance has improved over the past quarters, displaying enhanced revenue growth, stable cost management, increasing profitability, and efficient cash flow management. The effective tax and financial strategies are contributing positively towards earnings per share and shareholder value.