Kimberly-Clark Corporation (KMB)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 8,053,000 | 8,068,000 | 8,415,000 | 8,049,000 | 7,988,000 | 8,061,000 | 8,115,000 | 8,456,000 | 7,870,000 | 7,904,000 | 7,859,000 | 8,141,000 | 8,108,000 | 7,980,000 | 7,967,000 | 6,972,000 | 6,957,000 | 6,961,000 | 6,552,000 |
| Total stockholders’ equity | US$ in thousands | 915,000 | 680,000 | 500,000 | 719,000 | 547,000 | 437,000 | 593,000 | 705,000 | 514,000 | 707,000 | 758,000 | 746,000 | 626,000 | 577,000 | 495,000 | 46,000 | -33,000 | 88,000 | 50,000 | -82,000 |
| Debt-to-capital ratio | 0.00 | 0.92 | 0.94 | 0.92 | 0.94 | 0.95 | 0.93 | 0.92 | 0.94 | 0.92 | 0.91 | 0.91 | 0.93 | 0.93 | 0.94 | 0.99 | 1.00 | 0.99 | 0.99 | 1.01 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $915,000K)
= 0.00
Kimberly-Clark Corp.'s debt-to-capital ratio has shown fluctuations over the past eight quarters. The ratio ranged between 0.90 and 0.95 during this period, with the highest value observed in Q3 2022 and Q4 2022 at 0.95. This indicates that the company's level of debt relative to its capital has been relatively high, hovering close to the 1.0 mark, which suggests a higher dependency on debt financing rather than equity.
While a consistently high debt-to-capital ratio may raise concerns about the company's ability to meet its debt obligations in the long term, it is essential to note that the ratio has not exceeded 1.0, which could indicate a significant imbalance favoring debt. However, close monitoring of the trend is advisable to ensure the company maintains a healthy balance between debt and equity financing for sustainable growth and financial stability.
Peer comparison
Dec 31, 2023