Kimberly-Clark Beneish M Score

KMB
 Stock
  

USD 135.48  0.85  0.63%   

This module uses fundamental data of Kimberly-Clark Corp to approximate the value of its Beneish M Score. Kimberly-Clark Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please see Kimberly-Clark Corp Piotroski F Score and Kimberly-Clark Corp Altman Z Score analysis.
  
Kimberly-Clark Corp Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 8.57 Billion. The current year Debt Current is expected to grow to about 646.6 M, whereas Debt Non Current is forecasted to decline to about 7.9 B. Kimberly-Clark Corp Long Term Debt to Equity is projected to increase significantly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 15.08. The current year Calculated Tax Rate is expected to grow to 27.86, whereas Interest Coverage is forecasted to decline to 9.79.
At this time, it appears that Kimberly-Clark Corp is an unlikely manipulator. The earnings manipulation may begin if Kimberly-Clark Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Kimberly-Clark Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Kimberly-Clark Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.55
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.05Focus
Asset Quality0.94Focus
Expense Coverage1.02Focus
Gross Margin Strengs1.14Focus
Accruals Factor1.02Focus
Depreciation Resistance0.94Focus
Net Sales Growth0.94Focus
Financial Leverage Condition1.12Focus

Kimberly-Clark Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Kimberly-Clark Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues18.3 B19.4 B
Notably Down
Decreasing
Slightly volatile
Selling General and Administrative Expense3.3 B3.4 B
Sufficiently Down
Decreasing
Slightly volatile
Net Cash Flow from Operations3.1 B2.7 B
Fairly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion755.7 M766 M
Fairly Down
Decreasing
Slightly volatile
Total Assets16.4 B17.8 B
Significantly Down
Decreasing
Slightly volatile
Investments273.2 M290 M
Notably Down
Decreasing
Slightly volatile
Investments Non Current273.2 M290 M
Notably Down
Decreasing
Slightly volatile
Property Plant and Equipment Net7.5 B8.1 B
Significantly Down
Decreasing
Stable
Trade and Non Trade Receivables2.2 B2.2 B
Fairly Down
Decreasing
Slightly volatile
Total Liabilities17.6 B17.1 B
Fairly Up
Increasing
Slightly volatile
Current Assets5.3 B5.6 B
Notably Down
Decreasing
Slightly volatile
Assets Non Current11.1 B12.3 B
Moderately Down
Decreasing
Slightly volatile
Current Liabilities7.1 B6.7 B
Notably Up
Increasing
Slightly volatile
Liabilities Non Current10.5 B10.4 B
Fairly Up
Increasing
Slightly volatile
Total Debt8.7 B8.6 B
Fairly Up
Increasing
Slightly volatile
Debt Current646.6 M433 M
Way Up
Decreasing
Very volatile
Debt Non Current7.9 B8.1 B
Fairly Down
Increasing
Slightly volatile
Operating Income2.9 B2.6 B
Moderately Up
Increasing
Slightly volatile
Gross Margin0.350.308
Moderately Up
Increasing
Slightly volatile

Kimberly-Clark Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Kimberly-Clark Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Kimberly-Clark Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Kimberly-Clark Corp's degree of accounting gimmicks and manipulations.

About Kimberly-Clark Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

3.35 Billion

Kimberly-Clark Corp Operating Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Operating Expenses was at 3.43 Billion

Kimberly-Clark Corp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Kimberly-Clark Corp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues18.35 B18.49 B18.45 B19.14 B19.44 B18.28 B
Total Assets15.15 B14.52 B15.28 B17.52 B17.84 B16.41 B
Current Assets5.21 B5.04 B5.06 B5.17 B5.57 B5.29 B
Assets Non Current9.94 B9.48 B10.23 B12.35 B12.27 B11.12 B
Total Liabilities14.27 B14.56 B15.09 B16.65 B17.1 B17.62 B
Current Liabilities5.86 B6.54 B6.92 B6.44 B6.75 B7.14 B
Total Debt7.42 B7.46 B7.75 B8.36 B8.57 B8.72 B
Debt Current953 M1.21 B1.53 B486 M433 M646.57 M
Debt Non Current6.47 B6.25 B6.21 B7.88 B8.14 B7.92 B
Operating Income3.36 B2.23 B2.99 B3.24 B2.56 B2.91 B
Investments233 M224 M268 M300 M290 M273.24 M

Kimberly-Clark Corp ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Kimberly-Clark Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Kimberly-Clark Corp's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Kimberly-Clark Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Kimberly-Clark Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Kimberly-Clark Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Kimberly-Clark Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products worldwide. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas. Kimberly-Clark Corp operates under Household Personal Products classification in the United States and is traded on New York Stock Exchange. It employs 45000 people.

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Please see Kimberly-Clark Corp Piotroski F Score and Kimberly-Clark Corp Altman Z Score analysis. Note that the Kimberly-Clark Corp information on this page should be used as a complementary analysis to other Kimberly-Clark Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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Is Kimberly-Clark Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kimberly-Clark Corp. If investors know Kimberly-Clark will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kimberly-Clark Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.084
Market Capitalization
45.5 B
Quarterly Revenue Growth YOY
0.072
Return On Assets
0.0941
Return On Equity
2.42
The market value of Kimberly-Clark Corp is measured differently than its book value, which is the value of Kimberly-Clark that is recorded on the company's balance sheet. Investors also form their own opinion of Kimberly-Clark Corp's value that differs from its market value or its book value, called intrinsic value, which is Kimberly-Clark Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kimberly-Clark Corp's market value can be influenced by many factors that don't directly affect Kimberly-Clark Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kimberly-Clark Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Kimberly-Clark Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kimberly-Clark Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.