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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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).
- Debt to Equity Ratio
- The debt to equity ratio exhibits considerable fluctuation across the periods. Initially, it starts at a relatively high level of 57.01 in March 2017, spikes further to 78.66 in June 2017, then sharply declines to a low of 11.8 by December 2017. The ratio remains relatively low in the following quarters, with values around 30.12 to 13.36 in the most recent periods up to March 2021, suggesting a reduction in reliance on equity financing relative to debt over time.
- Debt to Capital Ratio
- The debt to capital ratio remains consistently high, mostly close to or slightly above 1.0 across the observed quarterly data. This consistency indicates a stable capital structure with a strong dependence on debt financing in the overall capital base throughout the periods.
- Debt to Assets Ratio
- The debt to assets ratio stays fairly stable, ranging between 0.48 and 0.54. This narrow band indicates that around half of the company’s assets are financed by debt over the time frame, reflecting a consistent approach in asset financing without significant shifts between periods.
- Financial Leverage
- Financial leverage experiences notable volatility similar to debt to equity. It peaks at 147.75 in June 2017, then declines sharply to 24.09 by December 2017. The ratio stabilizes afterward, with values fluctuating between approximately 27.99 and 60.35 in recent periods. This suggests varying degrees of dependency on borrowed funds relative to equity in the capital structure, with a general trend towards moderated leverage levels after 2017.
- Interest Coverage Ratio
- The interest coverage ratio gradually improves over time, starting around 10.68 in March 2017 and rising to above 12.5 by March 2021. The upward trend reflects an increased ability to meet interest obligations from operating earnings, indicating strengthened financial health and improved profitability or reduced interest expenses relative to earnings.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2021 Calculation
Debt to equity = Total debt ÷ Total Kimberly-Clark Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends related to the company's debt levels, equity position, and leverage ratios over the observed quarterly periods.
- Total debt (in US$ millions)
-
Total debt demonstrates slight fluctuations around a generally stable range between approximately 7,400 million and 8,800 million US dollars over the quarters. Initially, total debt increased modestly from 7,753 million at the end of the first quarter of 2017 to a peak of 8,822 million by March 31, 2021. The intermediate periods show some variation but remain within this band, indicating controlled debt management without major borrowing spikes or drastic repayments.
- Total Kimberly-Clark Corporation stockholders’ equity (in US$ millions)
-
Equity shows a highly volatile pattern with significant swings between positive and negative values. Early quarters in 2017 and 2018 exhibit positive equity balances, peaking at 629 million in December 2017. However, starting from March 2018, equity turns negative and remains predominantly below zero throughout most of the intermediate quarters, reaching a low of -305 million in March 2019. There is a recovery phase from mid-2020 onwards, where equity shifts back into positive territory, ending at 518 million by March 31, 2021. This volatility may reflect changes in retained earnings, asset revaluations, or other comprehensive income components impacting equity.
- Debt to equity ratio
-
The debt to equity ratio shows significant volatility correlating with the fluctuations in equity. Early in the period, the ratio is extremely high, exceeding 50 in the first quarter of 2017 but decreasing substantially to a low of 11.8 by the end of 2017 as equity increased. Following the periods where equity became negative, the debt-to-equity ratio could not be accurately computed or is omitted in the intermediate quarters, likely due to negative or near-zero equity figures. Resuming availability from June 2020 onwards, the ratio ranges from approximately 13.36 to 30.12, suggesting a reduction in leverage as equity improves, though remaining elevated compared to the lowest levels at the end of 2017.
In summary, the company's total debt remains relatively stable with a mild upward tendency. In contrast, stockholders' equity experiences considerable instability, sharply declining into negative values before a notable recovery starting in mid-2020. This instability in equity causes corresponding fluctuations and gaps in the debt-to-equity ratio, underscoring periods of heightened financial leverage and risk. The recent trends demonstrate an improvement in equity and leverage position, potentially signaling strengthened financial stability at the most recent points observed.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The company's total debt exhibited fluctuations over the presented quarters, generally oscillating between approximately $7.4 billion and $8.8 billion. Notably, total debt increased from $7.75 billion at the start of 2017 to a peak near $8.82 billion by March 2021, with intermittent declines and rises along the timeline. This indicates periods of both debt accumulation and repayment activities.
Total capital displayed a variable pattern, often reflecting changes in total debt but with distinct deviations. Starting near $7.89 billion in March 2017, total capital experienced gradual increases and decreases, culminating in a rise to about $9.34 billion by March 2021. This upward trend in total capital suggests growth in the company's financing base, potentially through equity issuance or retention of earnings alongside debt adjustments.
The debt-to-capital ratio, which measures the proportion of debt relative to total capital, demonstrated notable variability but generally remained close to or above 0.90 throughout the periods. Initial ratios in early 2017 were very high, around 0.97 to 0.99, indicating a heavy reliance on debt. The ratio dipped slightly to around 0.92 toward the end of 2017, signaling a temporary reduction in leverage. However, ratios climbed above 1.00 during parts of 2018 and 2019, implying total debt slightly exceeded total capital at times, which may reflect accounting or classification specifics in the reporting period.
From 2020 onward, the ratio decreased steadily from just over 1.0 to approximately 0.93-0.94 by March 2021, indicating a relative improvement in the company's capital structure with either reduction in debt proportion or an increase in capital base. This declining leverage trend suggests a strategic effort to strengthen financial stability or reduce debt risk.
Overall, the financial data reveals a company maintaining a high leverage position throughout the years but with signs of cautious deleveraging post-2020. The interplay between total debt and total capital indicates active balance sheet management, aiming to optimize capital structure and possibly respond to market conditions or corporate strategies.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reflects the company's leverage and asset base trends from the first quarter of 2017 through the first quarter of 2021. Key insights are as follows:
- Total Debt
- The total debt exhibited variability with an overall increasing tendency over the observed period. Starting at $7,753 million in March 2017, debt values fluctuated but generally rose to reach $8,822 million by March 2021. Notably, there were periods of reduction, such as from June to December 2017 and mid-2018; however, subsequent quarters demonstrated increments, particularly in 2020 and early 2021, indicating a trend towards elevated leverage.
- Total Assets
- Assets experienced gradual growth from $14,758 million at the beginning of 2017 to a peak of $17,523 million in December 2020, followed by a slight decline to $17,226 million in March 2021. Despite some mid-period decreases, particularly in mid-2018 and again early 2019, the asset base expanded, suggesting ongoing investment or accumulation of resources over the term.
- Debt to Assets Ratio
- The debt to assets ratio maintained relative stability across the timeframe, fluctuating within a narrow range predominantly between 0.48 and 0.54. This indicates that although both debt and assets changed, the proportion of debt relative to assets remained moderately consistent. Peaks occurred at 0.54 in the first quarter of 2020, and lows were around 0.48 in the last quarter of 2020, reflecting slight shifts in capital structure but no drastic changes in leverage policy.
Overall, the analysis indicates steady growth in asset holdings alongside a managed increase in debt levels. The maintained debt-to-asset ratio suggests a deliberate balance in leveraging, with controlled increases in debt aligned with asset expansion. This pattern may reflect strategic financing decisions aimed at supporting the company's growth objectives while maintaining financial stability.
Financial Leverage
Kimberly-Clark Corp., financial leverage calculation (quarterly data)
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
1 Q1 2021 Calculation
Financial leverage = Total assets ÷ Total Kimberly-Clark Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial trends reveals several key observations regarding the company's asset base, equity position, and financial leverage over the reported periods.
- Total Assets
- The total assets have exhibited a generally upward trend from March 2017 through March 2021. Starting at approximately 14.8 billion USD in early 2017, assets fluctuated slightly but showed consistent growth beginning in mid-2019. By March 2021, total assets had reached approximately 17.2 billion USD, indicating expansion or increased investment in asset holdings over the four-year span.
- Total Stockholders’ Equity
- The equity position has demonstrated significant volatility. Initially, equity was relatively low to moderate, peaking at 629 million USD at the end of 2017. Subsequently, there was a pronounced decline into negative territory throughout 2018 and into 2019, reaching lows such as -305 million USD by December 2018. Beginning in 2020, equity showed a recovery trend, rising back to positive figures and reaching over 600 million USD by the end of 2020 before dipping slightly to 518 million USD as of March 2021. This pattern suggests periods of financial strain followed by stabilization and recuperation.
- Financial Leverage Ratio
- Financial leverage displayed considerable fluctuations over the observed periods, complicating consistent analysis. Early data points showed extreme leverage levels, with values exceeding 100x and then significantly dropping to below 25x by the end of 2017. Data was unavailable for a substantial period between early 2018 and mid-2020. Upon resumption of reporting, leverage ratios ranged between approximately 28x and 60x. The absence of data in certain periods limits definitive conclusions but suggests variability in the company’s reliance on debt relative to equity.
- Overall Assessment
- The upward trend in total assets indicates growth or increased investment capacity. However, the volatile and sometimes negative equity suggests episodes of financial difficulty or restructuring that impacted the net worth significantly. The fluctuating financial leverage, coupled with missing data intervals, highlights potential changes in capital structure or reporting practices that may have influenced leverage assessments. The recent recovery in equity along with steady asset growth may point to improving financial health, although leverage remains relatively elevated.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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)
-
The EBIT experienced notable fluctuations over the observed periods. Initially, the values remained relatively stable in 2017, ranging approximately between $827 million and $881 million quarterly. A significant drop occurred in the first quarter of 2018, where EBIT sharply decreased to $267 million. Following this decline, EBIT partially recovered but showed inconsistent performance, peaking at $938 million in the third quarter of 2019 and then declining again towards the end of 2020 and into the first quarter of 2021. Overall, the data suggests episodic volatility with no sustained upward or downward trend across the quarterly intervals.
- Interest Expense
-
The interest expense remained relatively steady over the timeframe, fluctuating in a narrow band between $61 million and $85 million. No extreme spikes or drops are evident, indicating consistent borrowing costs or stable debt levels. The modest variation suggests controlled management of interest obligations despite variations in earnings.
- Interest Coverage Ratio
-
The interest coverage ratio reflects the company’s ability to meet interest payments with its EBIT. Initially, it decreased from about 10.7 to 8.29 between early 2017 and late 2018, corresponding with the observed fall in EBIT. Subsequently, there is a clear upward trend starting from late 2019, with the ratio improving steadily and reaching above 13 by mid-2020. This indicates an enhanced capacity to cover interest expenses, primarily driven by the recovery in EBIT and steady interest costs. By the first quarter of 2021, the interest coverage remains strong, although showing minor fluctuations around 12.5 to 13.