Kimberly-Clark Corporation (KMB)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,546,000 | 17,344,000 | 17,970,000 | 17,837,000 | 17,523,000 |
| Total stockholders’ equity | US$ in thousands | 840,000 | 915,000 | 547,000 | 514,000 | 626,000 |
| Financial leverage ratio | 19.70 | 18.96 | 32.85 | 34.70 | 27.99 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,546,000K ÷ $840,000K
= 19.70
The financial leverage ratio of Kimberly-Clark Corporation has exhibited fluctuations over the past five years. The ratio increased from 27.99% as of December 31, 2020, to 34.70% as of December 31, 2021, indicating a higher level of financial leverage. However, there was a slight decrease in the ratio to 32.85% as of December 31, 2022. Subsequently, a notable drop occurred, bringing the ratio down to 18.96% as of December 31, 2023. The ratio increased slightly to 19.70% as of December 31, 2024.
The financial leverage ratio measures the extent to which a company utilizes debt in its capital structure. A higher financial leverage ratio implies a greater reliance on debt financing, which can amplify returns but also increase financial risk. Conversely, a lower ratio indicates a more conservative capital structure with less debt.
Kimberly-Clark Corporation's fluctuating financial leverage ratios suggest some changes in its debt levels and capital structure strategies over the years. Further analysis of the company's financial statements and industry benchmarks would be beneficial to understand the implications of these variations in the financial leverage ratio.
Peer comparison
Dec 31, 2024