Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Solvency Ratios (Summary)
Kimberly-Clark Corp., solvency 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).
- Debt to Equity Ratio
- The debt to equity ratio exhibits notable fluctuations over the period. Initially, the ratio declined from 72.5 in March 2016 to 25.58 in September 2016, followed by a gap in data for December 2016. Thereafter, it increased substantially peaking at 78.66 in June 2017, but then decreased sharply to 11.8 by December 2017. In the subsequent years, the ratio showed some volatility but generally maintained a lower range, ending at 17.03 in March 2021. This pattern suggests periods of shifting leverage with notable reductions toward the latter part of the timeline.
- Debt to Capital Ratio
- This ratio remained relatively stable over the observed periods, hovering close to 1.0 throughout. It ranged from 0.92 to 1.04 in most quarters, indicating that debt consistently comprised a major portion of capital. The steadiness suggests a consistent capital structure with a high leverage profile over the timeframe.
- Debt to Assets Ratio
- The debt to assets ratio showed minor fluctuations around the 0.5 mark, ranging between 0.48 and 0.54. This stability indicates that approximately half of the total assets are financed through debt, with no significant upward or downward trend over the years. The ratio slightly decreased toward the end of the series, suggesting a marginal reduction in reliance on debt relative to total assets.
- Financial Leverage
- Financial leverage mirrored the pattern observed in the debt to equity ratio, with significant variability. Starting high at 135.96 in early 2016, it dropped to 49.83 by September 2016, increased again reaching 147.75 in June 2017, then declined to as low as 24.09 by the end of 2017. In the later years, the measure fluctuated mostly between approximately 27 and 60, ending at 33.25 in the first quarter of 2021. This indicates changing levels of reliance on debt relative to equity contributors, with greater moderation in more recent periods.
- Interest Coverage Ratio
- The interest coverage ratio was consistently above 8.0 during the available periods, starting at 10.85 in December 2016 and showing a generally positive trend. It experienced a slight decrease until December 2018 reaching 8.29 but then improved steadily thereafter, peaking at 13.94 in June 2020. The ratio remained strong above 12 by early 2021. This upward trend reflects an improving ability to cover interest expenses with operating earnings, signaling strengthening financial health in terms of interest obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
Kimberly-Clark Corp., debt to equity 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) | ||||||||||||||||||||||||||||
| Debt payable within one year | ||||||||||||||||||||||||||||
| Long-term debt, excluding payable within one year | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Kimberly-Clark Corporation stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, 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
Debt to equity = Total debt ÷ Total Kimberly-Clark Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in debt levels, equity, and leverage ratios over the observed periods.
- Total Debt
- Total debt exhibits fluctuations throughout the periods, ranging from around 7,348 million to a peak near 8,822 million US dollars. It shows a gradual increase from 7,903 million in March 2016 to approximately 8,364 million in December 2020, peaking at 8,822 million in March 2021. Although there are minor decreases in some quarters, the general pattern indicates an upward trend in total debt over the nearly five-year span.
- Stockholders’ Equity
- Stockholders’ equity presents a volatile pattern with significant variability and frequent negative values. Starting from 109 million US dollars in March 2016, equity increases to a high of 629 million in December 2016 but then declines sharply, reaching deeply negative values between 2017 and 2019. For several quarters, equity remains negative, indicating potential concerns about retained earnings or other equity components. However, from mid-2019 onward, equity values trend upward again, turning positive and reaching a substantial 626 million by September 2020, before slightly declining toward 518 million in March 2021. This volatility suggests periods of financial restructuring or impairments impacting equity values.
- Debt to Equity Ratio
- The debt-to-equity ratio shows notable inconsistency, reflecting the combined effects of fluctuating debt and volatile equity values. Early in the period, this ratio is extremely high at 72.5 in March 2016 but decreases markedly to as low as 11.8 in December 2017. Several gaps in the data preclude continuous observation, but ratios reported from 2019 onward stabilize at lower levels, ranging approximately from 13.36 to 30.12. The high initial ratio corresponds to the very low equity values at that time, while the later reduction indicates improving equity positions or better-managed leverage. Overall, the ratio’s volatility aligns with the erratic movement in equity and the moderate increase in debt levels.
In summary, the financial data indicate a company managing significant debt with substantial volatility in equity, impacting leverage ratios over the analyzed timeframe. Rising debt levels coupled with fluctuating and often negative equity values suggest periods of financial stress and recovery. The improvements in equity and more moderate debt-to-equity ratios in recent quarters may reflect strengthening financial stability.
Debt to Capital
Kimberly-Clark Corp., debt to capital 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) | ||||||||||||||||||||||||||||
| Debt payable within one year | ||||||||||||||||||||||||||||
| Long-term debt, excluding payable within one year | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Kimberly-Clark Corporation stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, 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
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows fluctuations over the observed periods, with values generally ranging between approximately $7,400 million and $8,800 million. Starting at $7,903 million in March 2016, it slightly declined to $7,425 million by December 2016 but then increased marginally in the first quarter of 2017. A downward trend is evident through 2018, reaching about $7,455 million by the end of that year. The totals increased again in 2019 and maintained relatively high levels, peaking at $8,822 million in the first quarter of 2021. Overall, the total debt exhibited a cyclical but mildly upward trend over the five-year span.
- Total Capital
- Total capital displayed a degree of variability, beginning at $8,012 million in March 2016, declining notably to $7,168 million by December 2018. Thereafter, it experienced a consistent upward trend, climbing to approximately $9,340 million by March 2021. The period between 2019 and early 2021 marks a strong recovery and growth phase in total capital after previous declines, suggesting strengthening capitalization in recent years.
- Debt to Capital Ratio
- The debt to capital ratio hovered near or slightly above 1.0 throughout the timeframe, indicating that debt was roughly equal to or slightly greater than total capital at most points. Initially, it decreased marginally from 0.99 in March 2016 to 0.92 by December 2017, reflecting a relative increase in capital versus debt. However, the ratio increased again, reaching a peak of 1.04 in both December 2018 and March 2019, suggesting a period of higher leverage. Following these peaks, the ratio trended downward, falling to approximately 0.93 by the end of 2020, and stabilizing around 0.94 in early 2021. This pattern implies a moderation in leverage risk in the more recent periods.
- Overall Insights
- The financial data indicates a company managing a significant amount of debt in relation to its capital base, with total debt remaining consistently high. The capital declined through late 2018 but recovered strongly thereafter. The debt to capital ratio's fluctuations suggest phases of both increased and moderated leverage, with recent trends pointing towards a more balanced capital structure. These movements may reflect strategic financial management responding to market conditions or operational needs over the analyzed time span.
Debt to Assets
Kimberly-Clark Corp., debt to assets 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) | ||||||||||||||||||||||||||||
| Debt payable within one year | ||||||||||||||||||||||||||||
| Long-term debt, excluding payable within one year | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, 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
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The data displays the evolution of total debt, total assets, and the debt to assets ratio for the company over a series of quarterly periods from March 31, 2016 to March 31, 2021.
- Total Debt
- Total debt values fluctuate over the analyzed period, starting at $7,903 million in March 2016 and ending at $8,822 million by March 2021. The debt peaked in March 2020 at $8,448 million, experiencing modest declines and increases throughout the quarters. Notable increments are observed between December 2019 and March 2020, followed by relatively stable elevated levels through the end of the timespan.
- Total Assets
- Total assets show a general upward trend across the period, beginning at $14,820 million in March 2016 and rising to $17,226 million by March 2021. There are occasional dips, such as decreases seen in mid-2018, but overall assets have increased steadily. The most pronounced growth occurs toward the end of the period from December 2019 forward, indicating an expansion in asset base.
- Debt to Assets Ratio
- The debt to assets ratio remains fairly stable, mostly fluctuating between 0.48 and 0.54 throughout the five years. Early in the period, the ratio hovers around 0.51 to 0.53, with a slight downward trend toward the end of 2017. From 2018 to 2021 this ratio does not display a strong directional change, exhibiting minor oscillations but mostly sustaining levels near 0.50 to 0.52. This suggests that increases in both debt and assets are proportionate, maintaining a consistent leverage level.
Overall, the data suggests a balanced financial structure where debt and asset growth are aligned, maintaining a relatively constant leverage profile. The company slightly increased its total debt over the years alongside steady asset growth, without significant volatility in the debt to assets ratio. This pattern indicates prudent financial management with controlled leverage despite the increasing scale of operations or investments.
Financial Leverage
Kimberly-Clark Corp., financial leverage calculation (quarterly data)
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Total Kimberly-Clark Corporation stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, 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
Financial leverage = Total assets ÷ Total Kimberly-Clark Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The presented financial data reveals significant fluctuations and notable trends across key financial metrics over the observed periods.
- Total assets
- Total assets exhibit an overall upward trajectory from approximately 14.8 billion US dollars in early 2016 to a peak near 17.5 billion US dollars by the end of 2020. There are minor dips observed during 2018, where total assets slightly decline from around 15.3 billion to approximately 14.5 billion US dollars before resuming their growth trend. The substantial increase toward the end of 2020 suggests asset growth or acquisition activities contributing to the company's expanding asset base.
- Total Kimberly-Clark Corporation stockholders’ equity
- Stockholders' equity portrays considerable volatility within the period measured. Initial equity values near 100 to 300 million US dollars fluctuate sharply, including several negative values, indicating episodes where liabilities may have exceeded assets or accounting adjustments impacted equity negatively. The negative equity values are notably pronounced during parts of 2016 and late 2018 into 2019. However, by the end of 2020 and the first quarter of 2021, equity recovers substantially, reaching positive figures above 500 million US dollars, which could imply improvements in profitability, capital infusion, or debt restructuring that strengthened the equity position.
- Financial leverage (ratio)
- The financial leverage ratio exhibits inconsistent and scattered readings, with several missing data points hindering a full trend analysis. Recorded values fluctuate dramatically, with extremely high leverage near 136 in early 2016, indicating a very high level of assets relative to equity, followed by a significant reduction to around 25 by late 2017. In subsequent periods, leverage settles lower compared to initial extremes, with values settling predominantly between approximately 27 and 60. This pattern suggests periods of substantial leverage reduction, potentially through equity growth or debt repayment, improving the financial stability of the company. The fluctuations and missing data points limit a conclusive assessment but suggest active management of capital structure across the reporting periods.
In summary, the data discloses an asset base that steadily expands with intermittent contractions, a highly variable stockholders’ equity including concerning negative values that recover by 2020, and an unstable financial leverage pattern that indicates efforts to optimize the balance between debt and equity over time. These trends collectively point toward a company encountering financial challenges in certain periods but demonstrating resilience and corrective financial strategies in others.
Interest Coverage
Kimberly-Clark Corp., interest coverage 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) | ||||||||||||||||||||||||||||
| Net income attributable to Kimberly-Clark Corporation | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest expense | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, 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
Interest coverage
= (EBITQ1 2021
+ EBITQ4 2020
+ EBITQ3 2020
+ EBITQ2 2020)
÷ (Interest expenseQ1 2021
+ Interest expenseQ4 2020
+ Interest expenseQ3 2020
+ Interest expenseQ2 2020)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- EBIT values exhibit notable fluctuations throughout the observed periods. From March 2016 to December 2017, figures generally remain between approximately 827 and 881 million US dollars, indicating relative stability with minor variances. However, beginning in March 2018, a significant decline is evident, dropping sharply to as low as 267 million US dollars. This reduction persists into December 2018, when EBIT reaches its lowest point at 577 million. Following this trough, a recovery trend is apparent: EBIT progressively increases from March 2019 through June 2020, reaching levels around 956 million in December 2020. The value then dips slightly afterward but remains elevated compared to the low of 2018, finishing at 804 million in March 2021.
- Interest expense
- Interest expenses demonstrate a relatively narrow range across the timeline, oscillating between 61 and 85 million US dollars. There is a mild downward trend from mid-2017 onward, moving from a peak around 85 million to values in the low 60s by 2020 and early 2021. This modest decline suggests improved cost management or refinancing activities diluting interest burden over time, though the changes are not dramatic.
- Interest coverage ratio
- The interest coverage ratio presents a generally increasing pattern, starting near 10.4 - 10.85 range during the earlier reported quarters (not available for all earlier dates). From March 2018, it declines temporarily, reaching a low of 8.29 in December 2018, reflecting the EBIT reduction seen simultaneously. Afterward, there is a consistent and marked improvement through the subsequent periods, peaking at 13.94 in June 2020. Despite a slight fall post-peak, the ratio remains robust above 12 by March 2021. This pattern indicates enhanced ability to cover interest expenses from operating earnings over the period following the 2018 dip.
- Overall trends and insights
- The data reflects a period of operational challenge around 2018, with EBIT decreasing sharply, adversely impacting the interest coverage ratio. The firm appears to have recovered effectively after this downturn, as shown by EBIT growth and improving interest coverage towards the end of the timeframe. Interest expenses remain comparatively stable with a gradual downward trend, which may contribute positively to coverage improvements. The recovery phase suggests effective operational adjustments or favorable market conditions enhancing earnings before interest and tax, supporting stronger financial health metrics related to interest obligations.