Kimberly-Clark Corporation (KMB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 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 | 0.46 | 0.46 | 0.45 | 0.43 |
| Debt-to-capital ratio | 0.00 | 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 | 1.00 | 0.99 | 0.99 | 1.01 |
| Debt-to-equity ratio | 0.00 | 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 | — | 79.06 | 139.22 | — |
| 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 | — |
Based on the data provided, we can analyze Kimberly-Clark Corp.'s solvency ratios over the past eight quarters.
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. Kimberly-Clark Corp.'s debt-to-assets ratio has remained relatively stable around the 0.46 to 0.49 range over the quarters. This suggests that approximately 46% to 49% of the company's assets are funded by debt.
2. Debt-to-capital ratio: This ratio represents the percentage of a company's capital that is financed by debt. Kimberly-Clark Corp.'s debt-to-capital ratio has fluctuated between 0.90 and 0.95 during the periods analyzed. This indicates that debt financing constitutes around 90% to 95% of the company's total capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio highlights the relationship between a company's debt and equity. Kimberly-Clark Corp.'s debt-to-equity ratio has varied considerably from 8.73 to 19.65 across the quarters. A higher ratio suggests a greater reliance on debt for financing, with values over 15 indicating a higher debt burden compared to equity.
4. Financial leverage ratio: This ratio measures a company's total assets relative to its equity. Kimberly-Clark Corp.'s financial leverage ratio has shown significant variation, ranging from 18.96 to 40.81 over the periods. A higher financial leverage ratio indicates that the company is using a significant amount of debt to finance its assets, exposing it to higher financial risk.
In summary, Kimberly-Clark Corp. has maintained a relatively stable debt-to-assets ratio, while its debt-to-capital ratio has shown slight fluctuations. However, the debt-to-equity and financial leverage ratios have displayed more significant variability, indicating changing levels of debt relative to equity and assets. Overall, it is crucial for investors and stakeholders to closely monitor these solvency ratios to assess the company's financial health and risk levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Kimberly-Clark Corp. has been relatively stable over the past eight quarters, ranging from a low of 9.74 in Q3 2022 to a high of 14.39 in Q4 2023. This ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
With values consistently above 1, which implies that the company's EBIT is sufficient to cover its interest expenses, Kimberly-Clark Corp. demonstrates a healthy ability to pay off its interest obligations. The increasing trend in the interest coverage ratio over the last two quarters suggests that the company's earnings are improving relative to its interest expenses, which is a positive sign for investors and creditors.
Overall, the interest coverage ratio analysis suggests that Kimberly-Clark Corp. has a strong financial position with a comfortable buffer to meet its interest payments, indicating financial stability and potentially lower default risk.