Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Kimberly-Clark Corp., solvency ratios
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).
| 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. debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020. |
| 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. debt to capital ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Kimberly-Clark Corp. debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020. |
| 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. debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Kimberly-Clark Corp. interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Kimberly-Clark Corp. fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Equity
Kimberly-Clark Corp., debt to equity 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) | ||||||
| Debt payable within one year | 486) | 1,534) | 1,208) | 953) | 1,133) | |
| Long-term debt, excluding payable within one year | 7,878) | 6,213) | 6,247) | 6,472) | 6,439) | |
| Total debt | 8,364) | 7,747) | 7,455) | 7,425) | 7,572) | |
| Total Kimberly-Clark Corporation stockholders’ equity | 626) | (33) | (287) | 629) | (102) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 13.36 | — | — | 11.80 | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Procter & Gamble Co. | 0.75 | 0.64 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Consumer Staples | 1.37 | 1.28 | — | — | — | |
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
Debt to equity = Total debt ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 8,364 ÷ 626 = 13.36
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, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 486) | 1,534) | 1,208) | 953) | 1,133) | |
| Long-term debt, excluding payable within one year | 7,878) | 6,213) | 6,247) | 6,472) | 6,439) | |
| Total debt | 8,364) | 7,747) | 7,455) | 7,425) | 7,572) | |
| Current operating lease liabilities | 133) | 130) | —) | —) | —) | |
| Noncurrent operating lease liabilities (classified in Other liabilities) | 423) | 274) | —) | —) | —) | |
| Total debt (including operating lease liability) | 8,920) | 8,151) | 7,455) | 7,425) | 7,572) | |
| Total Kimberly-Clark Corporation stockholders’ equity | 626) | (33) | (287) | 629) | (102) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 14.25 | — | — | 11.80 | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Procter & Gamble Co. | 0.77 | 0.64 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 1.51 | 1.31 | — | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 8,920 ÷ 626 = 14.25
2 Click competitor name to see calculations.
Debt to Capital
Kimberly-Clark Corp., debt to capital 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) | ||||||
| Debt payable within one year | 486) | 1,534) | 1,208) | 953) | 1,133) | |
| Long-term debt, excluding payable within one year | 7,878) | 6,213) | 6,247) | 6,472) | 6,439) | |
| Total debt | 8,364) | 7,747) | 7,455) | 7,425) | 7,572) | |
| Total Kimberly-Clark Corporation stockholders’ equity | 626) | (33) | (287) | 629) | (102) | |
| Total capital | 8,990) | 7,714) | 7,168) | 8,054) | 7,470) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.93 | 1.00 | 1.04 | 0.92 | 1.01 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Procter & Gamble Co. | 0.43 | 0.39 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Consumer Staples | 0.58 | 0.56 | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 8,364 ÷ 8,990 = 0.93
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. debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Capital (including Operating Lease Liability)
Kimberly-Clark Corp., debt to capital (including operating lease liability) 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) | ||||||
| Debt payable within one year | 486) | 1,534) | 1,208) | 953) | 1,133) | |
| Long-term debt, excluding payable within one year | 7,878) | 6,213) | 6,247) | 6,472) | 6,439) | |
| Total debt | 8,364) | 7,747) | 7,455) | 7,425) | 7,572) | |
| Current operating lease liabilities | 133) | 130) | —) | —) | —) | |
| Noncurrent operating lease liabilities (classified in Other liabilities) | 423) | 274) | —) | —) | —) | |
| Total debt (including operating lease liability) | 8,920) | 8,151) | 7,455) | 7,425) | 7,572) | |
| Total Kimberly-Clark Corporation stockholders’ equity | 626) | (33) | (287) | 629) | (102) | |
| Total capital (including operating lease liability) | 9,546) | 8,118) | 7,168) | 8,054) | 7,470) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.93 | 1.00 | 1.04 | 0.92 | 1.01 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Procter & Gamble Co. | 0.43 | 0.39 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.60 | 0.57 | — | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,920 ÷ 9,546 = 0.93
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. debt to capital ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Assets
Kimberly-Clark Corp., debt to assets 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) | ||||||
| Debt payable within one year | 486) | 1,534) | 1,208) | 953) | 1,133) | |
| Long-term debt, excluding payable within one year | 7,878) | 6,213) | 6,247) | 6,472) | 6,439) | |
| Total debt | 8,364) | 7,747) | 7,455) | 7,425) | 7,572) | |
| Total assets | 17,523) | 15,283) | 14,518) | 15,151) | 14,602) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.48 | 0.51 | 0.51 | 0.49 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Procter & Gamble Co. | 0.29 | 0.26 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Consumer Staples | 0.35 | 0.35 | — | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 8,364 ÷ 17,523 = 0.48
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. debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Assets (including Operating Lease Liability)
Kimberly-Clark Corp., debt to assets (including operating lease liability) 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) | ||||||
| Debt payable within one year | 486) | 1,534) | 1,208) | 953) | 1,133) | |
| Long-term debt, excluding payable within one year | 7,878) | 6,213) | 6,247) | 6,472) | 6,439) | |
| Total debt | 8,364) | 7,747) | 7,455) | 7,425) | 7,572) | |
| Current operating lease liabilities | 133) | 130) | —) | —) | —) | |
| Noncurrent operating lease liabilities (classified in Other liabilities) | 423) | 274) | —) | —) | —) | |
| Total debt (including operating lease liability) | 8,920) | 8,151) | 7,455) | 7,425) | 7,572) | |
| Total assets | 17,523) | 15,283) | 14,518) | 15,151) | 14,602) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.51 | 0.53 | 0.51 | 0.49 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Procter & Gamble Co. | 0.30 | 0.26 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.38 | 0.36 | — | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,920 ÷ 17,523 = 0.51
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. debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Financial Leverage
Kimberly-Clark Corp., financial leverage 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) | ||||||
| Total assets | 17,523) | 15,283) | 14,518) | 15,151) | 14,602) | |
| Total Kimberly-Clark Corporation stockholders’ equity | 626) | (33) | (287) | 629) | (102) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 27.99 | — | — | 24.09 | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Procter & Gamble Co. | 2.59 | 2.44 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Consumer Staples | 3.94 | 3.68 | — | — | — | |
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
Financial leverage = Total assets ÷ Total Kimberly-Clark Corporation stockholders’ equity
= 17,523 ÷ 626 = 27.99
2 Click competitor name to see calculations.
Interest Coverage
Kimberly-Clark Corp., interest coverage 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) | ||||||
| Net income attributable to Kimberly-Clark Corporation | 2,352) | 2,157) | 1,410) | 2,278) | 2,166) | |
| Add: Net income attributable to noncontrolling interest | 44) | 40) | 35) | 41) | 53) | |
| Add: Income tax expense | 676) | 576) | 471) | 776) | 922) | |
| Add: Interest expense | 252) | 261) | 263) | 318) | 319) | |
| Earnings before interest and tax (EBIT) | 3,324) | 3,034) | 2,179) | 3,413) | 3,460) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 13.19 | 11.62 | 8.29 | 10.73 | 10.85 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Procter & Gamble Co. | 35.05 | 12.92 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Consumer Staples | 10.92 | 8.45 | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 3,324 ÷ 252 = 13.19
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. interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Fixed Charge Coverage
Kimberly-Clark Corp., fixed charge coverage 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) | ||||||
| Net income attributable to Kimberly-Clark Corporation | 2,352) | 2,157) | 1,410) | 2,278) | 2,166) | |
| Add: Net income attributable to noncontrolling interest | 44) | 40) | 35) | 41) | 53) | |
| Add: Income tax expense | 676) | 576) | 471) | 776) | 922) | |
| Add: Interest expense | 252) | 261) | 263) | 318) | 319) | |
| Earnings before interest and tax (EBIT) | 3,324) | 3,034) | 2,179) | 3,413) | 3,460) | |
| Add: Operating lease cost | 370) | 307) | 280) | 281) | 271) | |
| Earnings before fixed charges and tax | 3,694) | 3,341) | 2,459) | 3,694) | 3,731) | |
| Interest expense | 252) | 261) | 263) | 318) | 319) | |
| Operating lease cost | 370) | 307) | 280) | 281) | 271) | |
| Fixed charges | 622) | 568) | 543) | 599) | 590) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.94 | 5.88 | 4.53 | 6.17 | 6.32 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Procter & Gamble Co. | 14.54 | 5.85 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Staples | 7.15 | 5.41 | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,694 ÷ 622 = 5.94
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. fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |