Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Kimberly-Clark Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
- Current Ratio
- The current ratio exhibits a generally fluctuating downward trend from March 2016 through March 2021, with values mostly below 1.0, indicating that the company's current liabilities consistently exceed or are close to its current assets over the analyzed periods. There is a notable decrease from 0.96 in the first quarter of 2016 to a low of 0.73 in both the first and fourth quarters of 2019. Subsequent quarters show some recovery, rising to 1.0 in the third quarter of 2020. However, this improvement is short-lived, as the ratio falls again below 1 in the first quarter of 2021, ending at 0.77. These fluctuations indicate recurring challenges in maintaining sufficient short-term liquidity to cover current liabilities.
- Quick Ratio
- The quick ratio follows a decreasing pattern over most of the period, starting at 0.54 in March 2016 and ending at 0.38 in March 2021. The ratios stay consistently below 1.0, with several quarters showing values near or below 0.4, particularly in the second half of 2018 through the end of 2019. A minor recovery is observed in mid-2020, reaching 0.6, which represents the highest point since early 2017. Despite this, the last data points depict a decline once again, suggesting limited liquid assets excluding inventories relative to current liabilities. Overall, the trend underscores continuing pressure on the company's ability to meet short-term obligations without relying on inventory sales.
- Cash Ratio
- The cash ratio remains the lowest among the three liquidity measures throughout the period, reflecting a minimal cash and cash equivalents buffer in relation to current liabilities. Starting from 0.12 in March 2016, it shows small variability with a downward trend until late 2018 when it dips to as low as 0.06 in the third and fourth quarters of 2019. A noticeable spike occurs in mid to late 2020, where the ratio climbs sharply to 0.25 in the third quarter, though this is not sustained, as it drops again to 0.05 by the first quarter of 2021. This sharp increase and subsequent decrease could signify temporary cash inflows or strategic shifts in cash management. Overall, the consistently low cash ratio highlights limited cash liquidity and potentially tight cash management conditions across the observed timeframe.
Current Ratio
Kimberly-Clark Corp., current ratio calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets show fluctuations over the analyzed quarters without a clear long-term upward or downward trend. Values oscillate around the 5,000 to 5,900 million US dollar range, peaking at 6,075 million in September 2020. Notable increases occur in the first half of 2020, while some decreases are observed in certain quarters such as June and September 2019.
- Current Liabilities
- Current liabilities generally exhibit increasing tendencies across the periods studied. Starting from around 5,300 to 5,800 million in early years, liabilities reached levels above 6,000 million by 2018 and further escalated to peaks over 6,800 million in some quarters of 2019 and 2021. This suggests rising short-term obligations over time, with occasional decreases not strong enough to offset the overall growth.
- Current Ratio
- The current ratio consistently remains below or around the benchmark of 1.0, indicating the company's current assets frequently do not fully cover current liabilities. Initially near 0.9 to 0.98 in early 2016, the ratio declines to a trough of approximately 0.73 in several quarters during 2019 before recovering slightly above 1.0 in late 2020. However, notable volatility is present, and the ratio dips again below 0.8 in early 2021, reflecting periods of tighter liquidity and potential short-term financial stress.
- Overall Insights
- The combination of fluctuations in current assets with a trend of increasing current liabilities results in a generally depressed current ratio over the timeline, frequently suggesting limited short-term liquidity buffers. Peaks in current liabilities outpacing current assets contribute to this tight liquidity profile. The temporary improvement of the current ratio near 1.0 during late 2020 could indicate effective asset management or liability restructuring in that period. Nonetheless, repeated declines and volatility imply ongoing challenges in maintaining optimal short-term financial stability.
Quick Ratio
Kimberly-Clark Corp., quick ratio calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Accounts receivable, net | ||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The value of total quick assets exhibited fluctuations over the analyzed periods. Initially, the assets increased moderately from 2,890 million USD at the end of March 2016 to 3,272 million USD by June 2017, recording some volatility thereafter. A decline was observed from mid-2017 through the end of 2018, dropping from 3,015 million USD in September 2017 to 2,703 million USD by December 2018. This was followed by modest recovery phases in early 2019 and a notable peak at 3,643 million USD in September 2020, before falling sharply to 2,519 million USD by March 2021.
- Current Liabilities
- Current liabilities generally increased over the timeframe, with some intermittent fluctuations. From 5,391 million USD in March 2016, liabilities peaked at 7,197 million USD in March 2019. A decline ensued during 2020, with the figure descending to 6,102 million USD by September 2020, before rising again to 6,694 million USD by March 2021. This trend indicates variability in short-term obligations but an overall upward trajectory over the longer term.
- Quick Ratio
- The quick ratio displayed a generally declining trend across the periods, suggesting a weakening in the company's ability to cover current liabilities with its most liquid assets. Starting at 0.54 in March 2016, the ratio saw minor improvements until mid-2017 when it hovered around 0.56. Subsequently, there was a gradual decrease, reaching lows of approximately 0.39 by December 2019 and March 2021. Notably, there was a temporary increase to 0.60 in September 2020, corresponding with the peak in quick assets, but the ratio rapidly reverted to lower levels thereafter.
- Overall Insights
- The data indicate volatility in liquidity management, with periods of both strengthening and decline. Despite occasional improvements in quick assets, the consistent rise in current liabilities and the downward pressure on the quick ratio highlight potential liquidity challenges. The sharp decrease in quick assets towards the end of the period, coupled with elevated liabilities, may warrant further scrutiny to ensure adequate short-term financial stability.
Cash Ratio
Kimberly-Clark Corp., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Procter & Gamble Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed periods. Total cash assets demonstrate notable volatility, with an increasing trend from the early quarters of 2016 through mid-2017, peaking at 1,051 million USD in June 2017. Subsequently, there is a general decline in cash assets until early 2019, followed by another increase culminating in a peak of 1,518 million USD in June 2020. However, this peak is followed by a sharp decline to 320 million USD by March 2021.
Current liabilities show a generally increasing trend from 5,391 million USD in March 2016 to 6,694 million USD in March 2021, with some fluctuations. There is a noticeable peak in the fourth quarter of 2018 and the first quarter of 2019, followed by a small decline and subsequent stabilization in the later periods.
The cash ratio fluctuates within a narrow range, with values generally below 0.2, indicating limited liquidity relative to current liabilities. It peaked at 0.25 in September 2020, coinciding with the highest level of cash assets, before dropping sharply to 0.05 in early 2021, signaling a potential reduction in liquidity.
- Total Cash Assets
- Exhibited volatility with peaks in mid-2017 and mid-2020, followed by pronounced declines, particularly in early 2021.
- Current Liabilities
- Showed an overall upward trend over the five-year span, suggesting increasing short-term obligations.
- Cash Ratio
- Remained generally low and variable, indicating constrained liquidity relative to current liabilities, with notable spikes in 2020 before a significant drop in 2021.
Overall, the data suggests that while cash reserves experienced periods of increase, the company faced rising current liabilities and fluctuating liquidity levels. The sharp decline in cash assets and cash ratio toward the end of the period may warrant further monitoring to assess short-term financial stability.