Kimberly-Clark Corporation (KMB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.45 | 0.43 | 0.46 | 0.47 | 0.46 | 0.47 | 0.46 | 0.46 | 0.45 | 0.45 | 0.45 | 0.43 | 0.47 | 0.44 | 0.44 | 0.46 | 0.46 | 0.49 | 0.49 | 0.51 |
| Debt-to-capital ratio | 0.90 | 0.85 | 0.88 | 0.88 | 0.90 | 0.92 | 0.94 | 0.92 | 0.94 | 0.95 | 0.93 | 0.92 | 0.94 | 0.92 | 0.91 | 0.91 | 0.93 | 0.93 | 0.94 | 0.99 |
| Debt-to-equity ratio | 8.86 | 5.80 | 7.00 | 7.63 | 8.72 | 11.84 | 16.14 | 11.70 | 14.71 | 18.28 | 13.59 | 11.51 | 16.45 | 11.13 | 10.43 | 10.53 | 13.00 | 14.05 | 16.12 | 173.20 |
| Financial leverage ratio | 19.70 | 13.36 | 15.21 | 16.37 | 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 |
Kimberly-Clark Corporation has shown a consistent improvement in its solvency ratios over the years. The Debt-to-assets ratio has decreased from 51% in March 2020 to 45% in December 2024. This indicates that the company has been reducing its reliance on debt to finance its assets.
The Debt-to-capital ratio has also shown a decreasing trend, declining from 99% in March 2020 to 90% in December 2024. This signifies that the company's reliance on debt as a proportion of its total capital has been decreasing, which is a positive sign for long-term solvency.
The Debt-to-equity ratio has seen a substantial decrease from 173.20% in March 2020 to 8.86% in December 2024. This signifies a significant reduction in the company's financial leverage and indicates a stronger financial position with a higher proportion of equity relative to debt.
The Financial leverage ratio has followed a similar trend, decreasing from 340.80% in March 2020 to 19.70% in December 2024. This reduction in financial leverage suggests that Kimberly-Clark has been effectively managing its debt levels and improving its financial stability over the years.
Overall, the solvency ratios of Kimberly-Clark Corporation demonstrate an improving financial health and a strengthening balance sheet position, reflecting prudent financial management and a reduced reliance on debt financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Kimberly-Clark Corporation has shown some fluctuations over the given timeframe. The ratio peaked at 13.77 in June 2020 and has since experienced a gradual decline. As of December 31, 2024, the interest coverage ratio stands at 12.52.
A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its earnings before interest and taxes (EBIT). Conversely, a lower ratio suggests a higher risk of default on its interest payments.
Overall, the trend in Kimberly-Clark's interest coverage ratio demonstrates a generally healthy financial position with a consistent ability to cover its interest expenses, although some recent declines warrant further monitoring to ensure the company's debt obligations remain manageable.