Kimberly-Clark Corporation (KMB)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 2,994,000 | 2,842,000 | 2,566,000 | 2,543,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 261,000 | 263,000 | 261,000 | 262,000 |
| Interest coverage | 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 | 11.47 | 10.81 | 9.83 | 9.71 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,510,000K ÷ $293,000K
= 8.57
Kimberly-Clark Corp.'s interest coverage has shown a consistent increasing trend over the past eight quarters, indicating the company's improving ability to meet its interest payment obligations. The interest coverage ratio has ranged from 9.74 to 14.39 during this period.
A higher interest coverage ratio reflects the company's strong earnings relative to its interest expenses. Kimberly-Clark Corp. has maintained healthy interest coverage levels above 10 across all quarters, which suggests that the company is comfortably able to cover its interest payments with its operating income.
The gradual increase in the interest coverage ratio over time signifies improved financial health and reduced financial risk for Kimberly-Clark Corp. Investors and creditors typically view a higher interest coverage ratio positively, as it indicates the company's capacity to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023
See also:
Kimberly-Clark Corporation Interest Coverage (Quarterly Data)