Kimberly-Clark Corporation (KMB)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,344,000 | 17,153,000 | 17,383,000 | 18,177,000 | 17,970,000 | 17,836,000 | 18,114,000 | 18,672,000 | 17,837,000 | 17,775,000 | 17,827,000 | 17,226,000 | 17,523,000 | 16,531,000 | 16,173,000 | 15,677,000 | 15,283,000 | 15,033,000 | 15,347,000 | 15,204,000 |
| 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 |
| Financial leverage ratio | 18.96 | 25.22 | 34.77 | 25.28 | 32.85 | 40.81 | 30.55 | 26.49 | 34.70 | 25.14 | 23.52 | 23.09 | 27.99 | 28.65 | 32.67 | 340.80 | — | 170.83 | 306.94 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,344,000K ÷ $915,000K
= 18.96
The financial leverage ratio of Kimberly-Clark Corp. has shown fluctuations over the past eight quarters, ranging from 18.96 to 40.81. The ratio indicates the extent to which the company relies on debt to finance its operations.
A decreasing trend in the financial leverage ratio from Q4 2022 to Q4 2023 may suggest that Kimberly-Clark Corp. has been reducing its reliance on debt financing, which can be a positive sign as it indicates lower financial risk.
However, the ratio spiked in Q2 2023, reaching 34.77, which might indicate a significant increase in debt levels during that period. This could be due to various reasons such as acquisitions, investments, or other strategic initiatives that required additional borrowing.
Overall, Kimberly-Clark Corp. should continue to monitor and manage its financial leverage ratio to ensure a healthy balance between debt and equity financing, aiming to optimize its capital structure and minimize financial risks.
Peer comparison
Dec 31, 2023
See also:
Kimberly-Clark Corporation Financial Leverage (Quarterly Data)