Kimberly-Clark Corporation (KMB)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.80 | 0.83 | 0.85 | 0.81 | 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 |
| Quick ratio | 0.43 | 0.47 | 0.49 | 0.47 | 0.47 | 0.46 | 0.45 | 0.42 | 0.37 | 0.37 | 0.39 | 0.41 | 0.37 | 0.37 | 0.37 | 0.38 | 0.39 | 0.60 | 0.53 | 0.54 |
| Cash ratio | 0.15 | 0.16 | 0.17 | 0.12 | 0.16 | 0.12 | 0.09 | 0.07 | 0.06 | 0.05 | 0.04 | 0.07 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.25 | 0.22 | 0.15 |
Kimberly-Clark Corporation's liquidity can be evaluated through its current ratio, quick ratio, and cash ratio. The current ratio reflects the company's ability to cover its short-term liabilities with its current assets. Over the past few years, the current ratio has fluctuated but generally stayed below 1, indicating potential challenges in meeting short-term obligations with current assets alone.
The quick ratio provides a more stringent measure of liquidity by excluding inventory from current assets. Kimberly-Clark's quick ratio has also been consistently below 1, suggesting a higher reliance on inventory to meet immediate cash requirements.
The cash ratio, which assesses the firm's ability to cover its current liabilities with cash and cash equivalents, shows a varying but relatively low level of liquidity over the years. While there has been some improvement in the cash ratio from 2020 to 2024, indicating a stronger cash position, it remains at modest levels.
Overall, Kimberly-Clark Corporation's liquidity ratios suggest a need for careful management of working capital and cash flows to ensure the company can meet its short-term obligations effectively.
See also:
Kimberly-Clark Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -17.16 | -8.06 | -6.33 | -3.27 | -8.20 | 1.34 | 0.13 | 2.57 | 0.90 | 6.62 | 8.08 | 4.74 | -2.16 | 5.68 | 9.59 | 6.87 | 0.14 | 4.81 | 2.95 | 9.58 |
The cash conversion cycle of Kimberly-Clark Corporation has experienced fluctuations over the reporting periods.
The company's cash conversion cycle decreased from 9.58 days on March 31, 2020, to -17.16 days on December 31, 2024. A negative cash conversion cycle indicates that the company is able to collect cash from sales before paying its suppliers, which can be advantageous for working capital management.
However, it is important to note that a significantly negative cash conversion cycle may also indicate potential issues such as aggressive payment terms with suppliers or inventory management challenges.
Overall, Kimberly-Clark's cash conversion cycle has shown variability over time, and it is crucial for the company to analyze the reasons behind these fluctuations to ensure effective cash flow management and sustainability in the long term.