Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Kimberly-Clark Corp., liquidity ratios
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.80 | 0.73 | 0.77 | 0.89 | 0.87 | |
| Quick ratio | 0.39 | 0.39 | 0.41 | 0.50 | 0.53 | |
| Cash ratio | 0.05 | 0.06 | 0.08 | 0.11 | 0.16 |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Kimberly-Clark Corp. current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Kimberly-Clark Corp. quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Kimberly-Clark Corp. cash ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Current Ratio
Kimberly-Clark Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 5,174) | 5,057) | 5,041) | 5,211) | 5,115) | |
| Current liabilities | 6,443) | 6,919) | 6,536) | 5,858) | 5,846) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.80 | 0.73 | 0.77 | 0.89 | 0.87 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Procter & Gamble Co. | 0.85 | 0.75 | — | — | — | |
| Current Ratio, Industry | ||||||
| Consumer Staples | 0.91 | 0.81 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,174 ÷ 6,443 = 0.80
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Kimberly-Clark Corp. current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Quick Ratio
Kimberly-Clark Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 303) | 442) | 539) | 616) | 923) | |
| Accounts receivable, net | 2,235) | 2,263) | 2,164) | 2,315) | 2,176) | |
| Total quick assets | 2,538) | 2,705) | 2,703) | 2,931) | 3,099) | |
| Current liabilities | 6,443) | 6,919) | 6,536) | 5,858) | 5,846) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.39 | 0.39 | 0.41 | 0.50 | 0.53 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Procter & Gamble Co. | 0.62 | 0.51 | — | — | — | |
| Quick Ratio, Industry | ||||||
| Consumer Staples | 0.47 | 0.38 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,538 ÷ 6,443 = 0.39
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Kimberly-Clark Corp. quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Cash Ratio
Kimberly-Clark Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 303) | 442) | 539) | 616) | 923) | |
| Total cash assets | 303) | 442) | 539) | 616) | 923) | |
| Current liabilities | 6,443) | 6,919) | 6,536) | 5,858) | 5,846) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.05 | 0.06 | 0.08 | 0.11 | 0.16 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Procter & Gamble Co. | 0.49 | 0.34 | — | — | — | |
| Cash Ratio, Industry | ||||||
| Consumer Staples | 0.34 | 0.24 | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 303 ÷ 6,443 = 0.05
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Kimberly-Clark Corp. cash ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |