Kimberly-Clark Corporation (KMB)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,703,000 | 5,729,000 | 5,565,000 | 5,174,000 | 5,057,000 |
| Total current liabilities | US$ in thousands | 6,930,000 | 7,334,000 | 6,749,000 | 6,443,000 | 6,919,000 |
| Current ratio | 0.82 | 0.78 | 0.82 | 0.80 | 0.73 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,703,000K ÷ $6,930,000K
= 0.82
The current ratio of Kimberly-Clark Corp. has fluctuated over the past five years. In 2023, the current ratio stands at 0.82, showing a slight improvement from the previous year's ratio of 0.78. This indicates that the company's current assets are sufficient to cover its current liabilities, with a slight increase in liquidity compared to the prior year.
Looking at a five-year trend, the current ratio has generally been within a range of 0.73 to 0.82, with some variability but remaining relatively stable overall. While the ratio in 2023 is higher than in 2019, showing an improvement in liquidity position over the period, there have been fluctuations from year to year.
It is important to note that a current ratio below 1.0 may raise concerns about the company's ability to meet its short-term obligations with its current assets alone. Therefore, although the current ratio of Kimberly-Clark Corp. has improved slightly in 2023, further monitoring of its liquidity position and working capital management is warranted.
Peer comparison
Dec 31, 2023