Kimberly-Clark Corporation (KMB)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,703,000 | 5,727,000 | 5,744,000 | 5,851,000 | 5,729,000 | 5,625,000 | 5,662,000 | 5,903,000 | 5,565,000 | 5,626,000 | 5,572,000 | 5,143,000 | 5,174,000 | 6,075,000 | 5,904,000 | 5,646,000 | 5,057,000 | 5,064,000 | 5,321,000 | 5,255,000 |
| 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 |
| Current ratio | 0.82 | 0.84 | 0.87 | 0.82 | 0.78 | 0.78 | 0.79 | 0.81 | 0.82 | 0.78 | 0.77 | 0.77 | 0.80 | 1.00 | 0.91 | 0.87 | 0.73 | 0.75 | 0.81 | 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 shown some fluctuations over the past eight quarters. The ratio, which measures the company's ability to meet its short-term obligations with its current assets, has ranged from 0.78 to 0.87 during this period.
In general, a current ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities, while a ratio above 1 suggests that it has the ability to cover these obligations. Kimberly-Clark's current ratio has mostly hovered around 0.8, which may raise some concerns about its short-term liquidity position.
The slight increase in the current ratio from Q4 2022 to Q2 2023 is a positive trend, suggesting that the company might have improved its short-term liquidity management during this period. However, the ratio dropped back to 0.82 in Q4 2023, which indicates a potential decline in the company's ability to cover its short-term liabilities.
Further analysis of the components of current assets and liabilities contributing to the current ratio would provide more insights into the company's liquidity position and help determine the effectiveness of its current asset management strategies.
Peer comparison
Dec 31, 2023