Kimberly-Clark Corporation (KMB)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,021,000 | 1,093,000 | 427,000 | 270,000 | 303,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 7,004,000 | 6,930,000 | 7,334,000 | 6,749,000 | 6,443,000 |
| Cash ratio | 0.15 | 0.16 | 0.06 | 0.04 | 0.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,021,000K
+ $—K)
÷ $7,004,000K
= 0.15
The cash ratio of Kimberly-Clark Corporation has shown fluctuations over the past five years. As of December 31, 2020, the cash ratio stood at 0.05, indicating that the company had $0.05 in cash and cash equivalents for every dollar of current liabilities. This ratio decreased slightly to 0.04 by December 31, 2021, suggesting a tighter liquidity position.
However, there was an improvement in the cash ratio in the following years. By December 31, 2022, the cash ratio increased to 0.06, showing a better ability to cover short-term obligations with its cash reserves. The trend continued positively, with the cash ratio reaching 0.16 by December 31, 2023, indicating a significant improvement in liquidity over the year.
By the end of December 31, 2024, the cash ratio remained healthy at 0.15, suggesting that Kimberly-Clark Corporation had a sufficient level of cash to meet its short-term liabilities. Overall, the upward trend in the cash ratio over the years reflects a positive liquidity position for the company, indicating its ability to handle financial obligations effectively.
Peer comparison
Dec 31, 2024