Kimberly-Clark Corporation (KMB)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,093,000 | 427,000 | 270,000 | 303,000 | 442,000 |
| Short-term investments | US$ in thousands | — | — | — | 300,000 | — |
| Receivables | US$ in thousands | 2,135,000 | 2,280,000 | 2,207,000 | 2,235,000 | 2,263,000 |
| Total current liabilities | US$ in thousands | 6,930,000 | 7,334,000 | 6,749,000 | 6,443,000 | 6,919,000 |
| Quick ratio | 0.47 | 0.37 | 0.37 | 0.44 | 0.39 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,093,000K
+ $—K
+ $2,135,000K)
÷ $6,930,000K
= 0.47
The quick ratio of Kimberly-Clark Corp. has exhibited some fluctuations over the past five years. The ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, such as cash and accounts receivable, has ranged from 0.47 to 0.54 during this period.
In 2023, the quick ratio improved to 0.54 from the previous year's 0.47, indicating a stronger ability to cover its short-term liabilities with its quick assets. However, it is essential to note that the ratio remains below 1, suggesting that Kimberly-Clark Corp. may face challenges in meeting its short-term obligations without relying on additional funding sources.
While the quick ratio has shown some variability, it is crucial for the company to continue monitoring and managing its liquidity position effectively to ensure it can fulfill its financial commitments as they come due. Further analysis of the components of quick assets and liabilities may provide more insights into the company's short-term liquidity position.
Peer comparison
Dec 31, 2023