Kimberly-Clark Corporation (KMB)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,440,000 | 7,982,000 | 8,049,000 | 8,456,000 | 8,141,000 |
| Total stockholders’ equity | US$ in thousands | 840,000 | 915,000 | 547,000 | 514,000 | 626,000 |
| Debt-to-capital ratio | 0.90 | 0.90 | 0.94 | 0.94 | 0.93 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,440,000K ÷ ($7,440,000K + $840,000K)
= 0.90
Kimberly-Clark Corporation's debt-to-capital ratio has remained relatively stable over the past five years. As of December 31, 2020, the ratio stood at 0.93 and increased slightly to 0.94 by December 31, 2021, and remained at that level in the subsequent year. However, by December 31, 2023, there was a slight decrease to 0.90 which was maintained in the most recent year, December 31, 2024.
The debt-to-capital ratio measures the proportion of a company's capital that is funded by debt. A ratio below 1 indicates that the company has more equity than debt in its capital structure. Kimberly-Clark Corporation's ratio hovers close to 1, indicating that its capital structure is predominantly debt-funded. The small fluctuations in the ratio over the years suggest that the company has been managing its debt levels relatively consistently.
Peer comparison
Dec 31, 2024