Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Kimberly-Clark Corp., solvency ratios
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
| Solvency 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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Kimberly-Clark Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Kimberly-Clark Corp.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Kimberly-Clark Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Kimberly-Clark Corp.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Kimberly-Clark Corp.’s fixed charge coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Debt to Equity
Kimberly-Clark Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 1,534 | 1,208 | 953 | 1,133 | 1,669 | |
| Long-term debt, excluding payable within one year | 6,213 | 6,247 | 6,472 | 6,439 | 6,106 | |
| Total debt | 7,747 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Total Kimberly-Clark Corporation stockholders’ equity | (33) | (287) | 629 | (102) | (174) | |
| Solvency Ratio | ||||||
| Debt to equity1 | — | — | 11.80 | — | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Colgate-Palmolive Co. | 67.07 | — | — | — | — | |
| Estée Lauder Cos. Inc. | 0.78 | 0.76 | 0.81 | 0.63 | 0.45 | |
| Nike Inc. | 0.38 | 0.39 | 0.31 | 0.17 | 0.10 | |
| Debt to Equity, Sector | ||||||
| Personal Goods | 1.66 | 1.50 | 1.23 | 1.19 | 1.09 | |
| Debt to Equity, Industry | ||||||
| Consumer Goods | 1.83 | 1.79 | 1.76 | 1.52 | 1.38 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Debt to equity = Total debt ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 7,747 ÷ -33 = —
2 Click competitor name to see calculations.
Debt to Equity (including Operating Lease Liability)
Kimberly-Clark Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 1,534 | 1,208 | 953 | 1,133 | 1,669 | |
| Long-term debt, excluding payable within one year | 6,213 | 6,247 | 6,472 | 6,439 | 6,106 | |
| Total debt | 7,747 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Current operating lease liabilities | 130 | — | — | — | — | |
| Noncurrent operating lease liabilities (classified in Other liabilities) | 274 | — | — | — | — | |
| Total debt (including operating lease liability) | 8,151 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Total Kimberly-Clark Corporation stockholders’ equity | (33) | (287) | 629 | (102) | (174) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | — | — | 11.80 | — | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Colgate-Palmolive Co. | 72.50 | — | — | — | — | |
| Estée Lauder Cos. Inc. | 0.78 | 0.76 | 0.81 | 0.63 | 0.45 | |
| Nike Inc. | 0.38 | 0.39 | 0.31 | 0.17 | 0.10 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Personal Goods | 1.74 | 1.50 | 1.23 | 1.19 | 1.09 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Goods | 1.87 | 1.79 | 1.76 | 1.52 | 1.38 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 8,151 ÷ -33 = —
2 Click competitor name to see calculations.
Debt to Capital
Kimberly-Clark Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 1,534 | 1,208 | 953 | 1,133 | 1,669 | |
| Long-term debt, excluding payable within one year | 6,213 | 6,247 | 6,472 | 6,439 | 6,106 | |
| Total debt | 7,747 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Total Kimberly-Clark Corporation stockholders’ equity | (33) | (287) | 629 | (102) | (174) | |
| Total capital | 7,714 | 7,168 | 8,054 | 7,470 | 7,601 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 1.00 | 1.04 | 0.92 | 1.01 | 1.02 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Colgate-Palmolive Co. | 0.99 | 1.02 | 1.01 | 1.04 | 1.05 | |
| Estée Lauder Cos. Inc. | 0.44 | 0.43 | 0.45 | 0.39 | 0.31 | |
| Nike Inc. | 0.28 | 0.28 | 0.23 | 0.14 | 0.09 | |
| Debt to Capital, Sector | ||||||
| Personal Goods | 0.62 | 0.60 | 0.55 | 0.54 | 0.52 | |
| Debt to Capital, Industry | ||||||
| Consumer Goods | 0.65 | 0.64 | 0.64 | 0.60 | 0.58 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,747 ÷ 7,714 = 1.00
2 Click competitor name to see calculations.
| Solvency 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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Capital (including Operating Lease Liability)
Kimberly-Clark Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 1,534 | 1,208 | 953 | 1,133 | 1,669 | |
| Long-term debt, excluding payable within one year | 6,213 | 6,247 | 6,472 | 6,439 | 6,106 | |
| Total debt | 7,747 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Current operating lease liabilities | 130 | — | — | — | — | |
| Noncurrent operating lease liabilities (classified in Other liabilities) | 274 | — | — | — | — | |
| Total debt (including operating lease liability) | 8,151 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Total Kimberly-Clark Corporation stockholders’ equity | (33) | (287) | 629 | (102) | (174) | |
| Total capital (including operating lease liability) | 8,118 | 7,168 | 8,054 | 7,470 | 7,601 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 1.00 | 1.04 | 0.92 | 1.01 | 1.02 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Colgate-Palmolive Co. | 0.99 | 1.02 | 1.01 | 1.04 | 1.05 | |
| Estée Lauder Cos. Inc. | 0.44 | 0.43 | 0.45 | 0.39 | 0.31 | |
| Nike Inc. | 0.28 | 0.28 | 0.23 | 0.14 | 0.09 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Personal Goods | 0.64 | 0.60 | 0.55 | 0.54 | 0.52 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Goods | 0.65 | 0.64 | 0.64 | 0.60 | 0.58 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,151 ÷ 8,118 = 1.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Kimberly-Clark Corp.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Assets
Kimberly-Clark Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 1,534 | 1,208 | 953 | 1,133 | 1,669 | |
| Long-term debt, excluding payable within one year | 6,213 | 6,247 | 6,472 | 6,439 | 6,106 | |
| Total debt | 7,747 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Total assets | 15,283 | 14,518 | 15,151 | 14,602 | 14,842 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.51 | 0.51 | 0.49 | 0.52 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Colgate-Palmolive Co. | 0.52 | 0.52 | 0.52 | 0.54 | 0.55 | |
| Estée Lauder Cos. Inc. | 0.26 | 0.28 | 0.31 | 0.24 | 0.20 | |
| Nike Inc. | 0.15 | 0.17 | 0.16 | 0.10 | 0.06 | |
| Debt to Assets, Sector | ||||||
| Personal Goods | 0.33 | 0.34 | 0.34 | 0.32 | 0.30 | |
| Debt to Assets, Industry | ||||||
| Consumer Goods | 0.41 | 0.42 | 0.41 | 0.38 | 0.36 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,747 ÷ 15,283 = 0.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Kimberly-Clark Corp.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Kimberly-Clark Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 1,534 | 1,208 | 953 | 1,133 | 1,669 | |
| Long-term debt, excluding payable within one year | 6,213 | 6,247 | 6,472 | 6,439 | 6,106 | |
| Total debt | 7,747 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Current operating lease liabilities | 130 | — | — | — | — | |
| Noncurrent operating lease liabilities (classified in Other liabilities) | 274 | — | — | — | — | |
| Total debt (including operating lease liability) | 8,151 | 7,455 | 7,425 | 7,572 | 7,775 | |
| Total assets | 15,283 | 14,518 | 15,151 | 14,602 | 14,842 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.53 | 0.51 | 0.49 | 0.52 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Colgate-Palmolive Co. | 0.56 | 0.52 | 0.52 | 0.54 | 0.55 | |
| Estée Lauder Cos. Inc. | 0.26 | 0.28 | 0.31 | 0.24 | 0.20 | |
| Nike Inc. | 0.15 | 0.17 | 0.16 | 0.10 | 0.06 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Personal Goods | 0.35 | 0.34 | 0.34 | 0.32 | 0.30 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Goods | 0.42 | 0.42 | 0.41 | 0.38 | 0.36 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,151 ÷ 15,283 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Kimberly-Clark Corp.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Financial Leverage
Kimberly-Clark Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 15,283 | 14,518 | 15,151 | 14,602 | 14,842 | |
| Total Kimberly-Clark Corporation stockholders’ equity | (33) | (287) | 629 | (102) | (174) | |
| Solvency Ratio | ||||||
| Financial leverage1 | — | — | 24.09 | — | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Colgate-Palmolive Co. | 128.50 | — | — | — | — | |
| Estée Lauder Cos. Inc. | 3.00 | 2.68 | 2.64 | 2.58 | 2.26 | |
| Nike Inc. | 2.62 | 2.30 | 1.87 | 1.75 | 1.70 | |
| Financial Leverage, Sector | ||||||
| Personal Goods | 4.97 | 4.38 | 3.61 | 3.70 | 3.57 | |
| Financial Leverage, Industry | ||||||
| Consumer Goods | 4.43 | 4.28 | 4.25 | 3.96 | 3.80 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Financial leverage = Total assets ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 15,283 ÷ -33 = —
2 Click competitor name to see calculations.
Interest Coverage
Kimberly-Clark Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kimberly-Clark Corporation | 2,157 | 1,410 | 2,278 | 2,166 | 1,013 | |
| Add: Net income attributable to noncontrolling interest | 40 | 35 | 41 | 53 | 53 | |
| Add: Income tax expense | 576 | 471 | 776 | 922 | 418 | |
| Add: Interest expense | 261 | 263 | 318 | 319 | 295 | |
| Earnings before interest and tax (EBIT) | 3,034 | 2,179 | 3,413 | 3,460 | 1,779 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 11.62 | 8.29 | 10.73 | 10.85 | 6.03 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Colgate-Palmolive Co. | 18.19 | 18.95 | 23.79 | 26.09 | 21.77 | |
| Estée Lauder Cos. Inc. | 18.35 | 16.47 | 16.70 | 23.00 | 27.01 | |
| Nike Inc. | 37.65 | 35.88 | 57.81 | 150.13 | 124.68 | |
| Interest Coverage, Sector | ||||||
| Personal Goods | 19.38 | 17.50 | 20.83 | 23.92 | 20.18 | |
| Interest Coverage, Industry | ||||||
| Consumer Goods | 9.36 | 11.69 | 12.86 | 14.56 | 12.55 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,034 ÷ 261 = 11.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Kimberly-Clark Corp.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Fixed Charge Coverage
Kimberly-Clark Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Kimberly-Clark Corporation | 2,157 | 1,410 | 2,278 | 2,166 | 1,013 | |
| Add: Net income attributable to noncontrolling interest | 40 | 35 | 41 | 53 | 53 | |
| Add: Income tax expense | 576 | 471 | 776 | 922 | 418 | |
| Add: Interest expense | 261 | 263 | 318 | 319 | 295 | |
| Earnings before interest and tax (EBIT) | 3,034 | 2,179 | 3,413 | 3,460 | 1,779 | |
| Add: Operating lease cost | 307 | 280 | 281 | 271 | 279 | |
| Earnings before fixed charges and tax | 3,341 | 2,459 | 3,694 | 3,731 | 2,058 | |
| Interest expense | 261 | 263 | 318 | 319 | 295 | |
| Operating lease cost | 307 | 280 | 281 | 271 | 279 | |
| Fixed charges | 568 | 543 | 599 | 590 | 574 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.88 | 4.53 | 6.17 | 6.32 | 3.59 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Colgate-Palmolive Co. | 9.34 | 9.53 | 10.58 | 11.59 | 8.96 | |
| Estée Lauder Cos. Inc. | 4.22 | 4.21 | 3.89 | 4.03 | 4.38 | |
| Nike Inc. | 6.00 | 5.58 | 6.98 | 7.68 | 7.70 | |
| Fixed Charge Coverage, Sector | ||||||
| Personal Goods | 5.99 | 5.66 | 6.59 | 7.08 | 5.98 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Goods | 5.97 | 7.51 | 8.40 | 9.63 | 8.31 | |
Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,341 ÷ 568 = 5.88
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Kimberly-Clark Corp.’s fixed charge coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |