Kimberly-Clark Corporation (KMB)
Debt-to-equity 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-equity ratio | 8.86 | 8.72 | 14.71 | 16.45 | 13.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,440,000K ÷ $840,000K
= 8.86
The debt-to-equity ratio of Kimberly-Clark Corporation has shown fluctuations over the years based on the provided data. As of December 31, 2020, the ratio was 13.00, indicating a relatively high level of debt compared to equity. By December 31, 2021, the ratio had increased to 16.45, suggesting a further increase in the company's debt relative to its equity.
In the following years, there was a downtrend in the debt-to-equity ratio. By December 31, 2022, the ratio had decreased to 14.71, and by December 31, 2023, it fell even lower to 8.72. This downward trend continued into December 31, 2024, with the ratio at 8.86.
The reduction in the debt-to-equity ratio from 2022 onwards indicates a strengthening financial position for Kimberly-Clark Corporation, as it signifies a lower level of debt in relation to equity. This could imply improved financial stability and a lower risk of financial distress. Overall, the trend in the debt-to-equity ratio suggests that the company may be actively managing its debt levels to maintain a healthier balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024