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Kimberly-Clark Corp. (KMB) | Long-term Debt and Solvency Analysis

Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.


Ratios (Summary)

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Kimberly-Clark Corp., debt and solvency ratios

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Debt to equity
Debt to capital
Interest coverage

Source: Based on data from Kimberly-Clark Corp. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Kimberly-Clark Corp.'s debt-to-equity ratio improved from 2008 to 2009 and from 2009 to 2010.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Kimberly-Clark Corp.'s debt-to-capital ratio improved from 2008 to 2009 and from 2009 to 2010.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Kimberly-Clark Corp.'s interest coverage ratio improved from 2008 to 2009 and from 2009 to 2010.

Debt to Equity

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  Selected Financial Data (USD $ in millions)
Debt payable within one year
Long-term debt
Total debt
Kimberly-Clark Corporation stockholders’ equity
  Debt to Equity, Comparison to Industry
Kimberly-Clark Corp.1
  Industry, Consumer Goods

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2010 Calculations

1 Debt to equity = Total debt ÷ Kimberly-Clark Corporation stockholders’ equity
= ÷ =

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Kimberly-Clark Corp.'s debt-to-equity ratio improved from 2008 to 2009 and from 2009 to 2010.

Debt to Capital

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  Selected Financial Data (USD $ in millions)
Debt payable within one year
Long-term debt
Total debt
Kimberly-Clark Corporation stockholders’ equity
Total capital
  Debt to Capital, Comparison to Industry
Kimberly-Clark Corp.1
  Industry, Consumer Goods

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2010 Calculations

1 Debt to capital = Total debt ÷ Total capital
= ÷ =

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Kimberly-Clark Corp.'s debt-to-capital ratio improved from 2008 to 2009 and from 2009 to 2010.

Interest Coverage

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  Selected Financial Data (USD $ in millions)
Net income attributable to Kimberly-Clark Corporation
Add: Net income attributable to noncontrolling interests
Add: Interest expense
Add: Income tax expense (benefit)
Earnings before interest and tax (EBIT)
  Interest Coverage, Comparison to Industry
Kimberly-Clark Corp.1
  Industry, Consumer Goods

Source: Based on data from Kimberly-Clark Corp. Annual Reports

2010 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= ÷ =

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Kimberly-Clark Corp.'s interest coverage ratio improved from 2008 to 2009 and from 2009 to 2010.

February 8, 2012

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