Kimberly-Clark Corporation (KMB)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,380,000 | 2,510,000 | 2,711,000 | 2,549,000 | 3,280,000 |
| Interest expense | US$ in thousands | 270,000 | 293,000 | 282,000 | 256,000 | 252,000 |
| Interest coverage | 12.52 | 8.57 | 9.61 | 9.96 | 13.02 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,380,000K ÷ $270,000K
= 12.52
The interest coverage ratio of Kimberly-Clark Corporation has shown a decreasing trend over the past few years, declining from 13.02 in 2020 to 9.96 in 2021 and further to 9.61 in 2022. This indicates that the company's ability to cover its interest expenses with its earnings before interest and taxes has slightly weakened. In 2023, the interest coverage ratio decreased to 8.57, reflecting a further decline in the company's ability to service its interest payments. However, there was a notable improvement in 2024, with the interest coverage ratio increasing to 12.52, suggesting a better ability to cover interest expenses with operating income. It is essential for investors and creditors to closely monitor this ratio going forward to assess Kimberly-Clark Corporation's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024