Financial Model
Budget: $30 – $250 USD
Kimberly-Clark Corporation is a global health and hygiene company that manufactures and provides consumer products. The Company's products include diapers, tissues, paper towels, incontinence
care products, surgical gowns, and disposable face masks.
Your task is to understand and articulate how they make money, key swings factors that impact revenues and company profitability, and take a view on what revenues and profits will look
like in CY23 and CY24. You should also articulate key swing factors that will change your view.
Company Considerations:
·
What are the key drivers of growth? Can you break down their components?
·
Does KMB have any competitive advantages? How sustainable are they?
·
How do you think revenue should grow in the future and how do you substantiate these assumptions?
·
What are the key drivers of profit? Can you break down their components?
o
What assumptions are you using to drive your view and what pieces of evidence do you use to support your assumptions?
o
What drives the most variability to profit growth and why?
·
What are the key risks that KMB may face going forward?
Deliverables:
·
Please submit a 1-2 page word document discussing your view
on the key drivers of KMB’s revenue and EBIT and your prospective view on what this business may look like in the future.
·
Please submit an Excel file that leverages your fundamental
understanding of the business and ties your conclusions to real world company financials (e.g. How would you construct KMB’s revenue forecast? How would you construct KMB’s operating profit forecast?). Parameters for the model:
o
Historical income statement data for 2018 – 2Q 2022 (only quarterly for 2021-2022)
o
Quarterly forecasts for income statement, revenue drivers, EBIT drivers for 3Q 2022 – 2023; Annual forecast for 2024
care products, surgical gowns, and disposable face masks.
Your task is to understand and articulate how they make money, key swings factors that impact revenues and company profitability, and take a view on what revenues and profits will look
like in CY23 and CY24. You should also articulate key swing factors that will change your view.
Company Considerations:
·
What are the key drivers of growth? Can you break down their components?
·
Does KMB have any competitive advantages? How sustainable are they?
·
How do you think revenue should grow in the future and how do you substantiate these assumptions?
·
What are the key drivers of profit? Can you break down their components?
o
What assumptions are you using to drive your view and what pieces of evidence do you use to support your assumptions?
o
What drives the most variability to profit growth and why?
·
What are the key risks that KMB may face going forward?
Deliverables:
·
Please submit a 1-2 page word document discussing your view
on the key drivers of KMB’s revenue and EBIT and your prospective view on what this business may look like in the future.
·
Please submit an Excel file that leverages your fundamental
understanding of the business and ties your conclusions to real world company financials (e.g. How would you construct KMB’s revenue forecast? How would you construct KMB’s operating profit forecast?). Parameters for the model:
o
Historical income statement data for 2018 – 2Q 2022 (only quarterly for 2021-2022)
o
Quarterly forecasts for income statement, revenue drivers, EBIT drivers for 3Q 2022 – 2023; Annual forecast for 2024