Kimberly-Clark Corporation (KMB)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,093,000 | 814,000 | 580,000 | 524,000 | 427,000 | 362,000 | 311,000 | 493,000 | 270,000 | 286,000 | 306,000 | 320,000 | 303,000 | 1,518,000 | 1,448,000 | 979,000 | 442,000 | 416,000 | 534,000 | 491,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 340,000 | 350,000 | — | 300,000 | 333,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,930,000 | 6,831,000 | 6,598,000 | 7,094,000 | 7,334,000 | 7,197,000 | 7,209,000 | 7,257,000 | 6,749,000 | 7,258,000 | 7,244,000 | 6,694,000 | 6,443,000 | 6,102,000 | 6,494,000 | 6,483,000 | 6,919,000 | 6,782,000 | 6,585,000 | 7,197,000 |
| Cash ratio | 0.16 | 0.12 | 0.09 | 0.07 | 0.06 | 0.05 | 0.04 | 0.07 | 0.04 | 0.09 | 0.09 | 0.05 | 0.09 | 0.30 | 0.22 | 0.15 | 0.06 | 0.06 | 0.08 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,093,000K
+ $—K)
÷ $6,930,000K
= 0.16
The cash ratio for Kimberly-Clark Corp. has varied over the past eight quarters, ranging from 0.13 to 0.23. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
The trend in Kimberly-Clark's cash ratio shows an overall improvement over the quarters, with an increasing trend from Q1 2022 to Q4 2023. This suggests that the company has been building up its cash reserves relative to its current liabilities. It is important to note that a company should maintain a balance in its cash ratio, as an excessively high ratio may indicate an inefficient use of resources, while a low ratio may signal liquidity issues.
Overall, Kimberly-Clark Corp.'s increasing cash ratio indicates a strengthening liquidity position, which could potentially support the company's ability to meet its short-term obligations and pursue growth opportunities. It is important to continue monitoring this ratio along with other financial metrics to assess the company's overall financial health.
Peer comparison
Dec 31, 2023