Kimberly-Clark (KMB) was founded in 1972 and manufactures and operates healthcare and personal care paper products. It is a multi-billion dollar company, known for brands such as Huggies, Kleenex and Scott paper towels. Kimberly Clark currently operates worldwide and serves more than 140 countries. KMB's two biggest competitors are consumer giants Procter & Gamble (PG) and Johnson & Johnson (JNJ). Financial evaluation of the personal care products industry and the competition within the industry allows Kimberly Clark to evaluate its competitiveness. The use of the financial statement and ratios creates an assessment of both short-term and long-term risks and returns. Effective use of this ratio analysis and comparisons will provide a business strategy to leverage the efficient use of capital, maximize return on investments, assets and equity, and ability to pay debts.Financial StatementsIncome StatementFirst , the income statement summarizes the company's revenues and expenses. Revenue is generated from sales of Kimberly Clark goods to supermarkets, department stores, pharmacies, department stores and other retail outlets, as well as through distributors and e-commerce. Expenses incurred by Kimberly Clark include cost of goods sold, payroll, taxes, and interest. The bottom line of the income statement is KMB's net profit. This number tells investors (and the Company's finance department) whether the company is profitable. Kimberly-Clark's net profit decreased from $1,884 million in 2009 to $1,591 million in 2011 to steadily improve from $2,142 million in 2013. Balance Sheet Next, KMB will review the balance sheet, which must perfectly balance activities and liabilities... .middle of paper ......decreasing stock prices as investors seek other stock options. A stable dividend payout ratio indicates a solid dividend policy by the company. Currently, Kimberly-Clark's annual dividend per share is $3.24. Compared to one of the biggest competitors and industry leaders, Proctor & Gamble, $2.36, this is $0.88 more. Furthermore, statistics show that dividend payments over the past three years have seen annual growth, and these factors attract investors. Conclusion Overall, Kimberly Clark is operationally efficient. They demonstrated their awareness of meeting short- and long-term obligations. This is good for both lenders and investors looking to expand their portfolios and lend financial assistance to grow the business with limited risk. Kimberly Clark is actually creating future opportunities by reducing financial risks.