Kimberly-Clark Corporation (KMB)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,380,000 | 3,532,000 | 3,153,000 | 2,596,000 | 2,510,000 | 2,498,000 | 2,347,000 | 2,821,000 | 2,711,000 | 2,503,000 | 2,495,000 | 2,457,000 | 2,549,000 | 2,804,000 | 2,793,000 | 3,156,000 | 3,280,000 | 3,230,000 | 3,511,000 | 3,250,000 |
| Interest expense (ttm) | US$ in thousands | 270,000 | 276,000 | 283,000 | 287,000 | 293,000 | 299,000 | 298,000 | 290,000 | 282,000 | 270,000 | 261,000 | 258,000 | 256,000 | 256,000 | 254,000 | 254,000 | 252,000 | 251,000 | 255,000 | 257,000 |
| Interest coverage | 12.52 | 12.80 | 11.14 | 9.05 | 8.57 | 8.35 | 7.88 | 9.73 | 9.61 | 9.27 | 9.56 | 9.52 | 9.96 | 10.95 | 11.00 | 12.43 | 13.02 | 12.87 | 13.77 | 12.65 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,380,000K ÷ $270,000K
= 12.52
Kimberly-Clark Corporation's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio represents the company's ability to pay interest expenses on its outstanding debt.
The interest coverage ratio ranged from a high of 13.77 in June 2020 to a low of 7.88 in June 2023. This indicates that the company had varying levels of ability to cover its interest payments during this period.
Overall, the trend shows a general decline in the interest coverage ratio from mid-2021 to mid-2024, indicating potential difficulties in covering interest expenses. However, there was a slight improvement towards the end of the period, with the ratio increasing to 12.52 by December 31, 2024.
It is important to closely monitor the interest coverage ratio to ensure that Kimberly-Clark Corporation can continue to meet its debt obligations effectively and avoid financial distress.
Peer comparison
Dec 31, 2024
See also:
Kimberly-Clark Corporation Interest Coverage (Quarterly Data)