Kimberly-Clark Corporation (KMB)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 8,049,000 | 8,456,000 | 8,141,000 | 6,972,000 |
| Total stockholders’ equity | US$ in thousands | 915,000 | 547,000 | 514,000 | 626,000 | -33,000 |
| Debt-to-equity ratio | 0.00 | 14.71 | 16.45 | 13.00 | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $915,000K
= 0.00
The debt-to-equity ratio of Kimberly-Clark Corp. has shown fluctuations over the past five years. In 2023, the ratio decreased to 8.73 from 15.40 in 2022, indicating a significant improvement in the company's leverage position. This reduction suggests that Kimberly-Clark has reduced its reliance on debt financing in relation to equity, which may be viewed favorably by investors and creditors.
Comparing the current ratio to the ratios of the previous years, Kimberly-Clark's debt-to-equity ratio was relatively high in 2021 and 2022, at 16.68 and 15.40 respectively. However, in 2023, the company managed to lower its debt-to-equity ratio significantly, signaling a potential improvement in its financial health and risk profile.
The absence of a 2019 figure prohibits a complete trend analysis, but the overall decreasing trend from 2020 to 2023 suggests that Kimberly-Clark has been actively managing its debt levels in relation to equity over the years.
It is essential to note that the debt-to-equity ratio should be interpreted in conjunction with other financial metrics and factors to gain a comprehensive understanding of Kimberly-Clark's overall financial performance and sustainability.
Peer comparison
Dec 31, 2023