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Kimberly-Clark Financial Strength

: 5 (As of Jun. 2022)
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Kimberly-Clark has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Kimberly-Clark's Interest Coverage for the quarter that ended in Jun. 2022 was 9.13. Kimberly-Clark's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.43. As of today, Kimberly-Clark's Altman Z-Score is 3.65.


Competitive Comparison

For the Household & Personal Products subindustry, Kimberly-Clark's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Kimberly-Clark Financial Strength Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kimberly-Clark's Financial Strength distribution charts can be found below:

* The bar in red indicates where Kimberly-Clark's Financial Strength falls into.



Kimberly-Clark Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Kimberly-Clark's Interest Expense for the months ended in Jun. 2022 was $-68 Mil. Its Operating Income for the months ended in Jun. 2022 was $621 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $7,698 Mil.

Kimberly-Clark's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*621/-68
=9.13

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Kimberly-Clark's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1031 + 7698) / 20252
=0.43

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Kimberly-Clark has a Z-score of 3.65, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.65 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kimberly-Clark  (NYSE:KMB) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Kimberly-Clark has the Financial Strength Rank of 5.


Kimberly-Clark Financial Strength Related Terms

Thank you for viewing the detailed overview of Kimberly-Clark's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Kimberly-Clark Business Description

Kimberly-Clark logo
Address
P.O. Box 619100, Dallas, TX, USA, 75261-9100
With around half of sales from personal care and another third from tissue products, Kimberly-Clark sits as a leading manufacturer of tissue and hygiene realm. Its brand mix includes Huggies, Pull-Ups, Kotex, Depend, Kleenex, and Cottonelle. The firm also operates K-C Professional, which partners with businesses to provide safety and sanitary products for the workplace. Kimberly-Clark generates just over of half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.
Executives
Mathews Sylvia M director P.O. BOX 619100 DALLAS TX 75261
Urdaneta Nelson officer: Chief Financial Officer C/O MONDELEZ INTERNATIONAL, INC. THREE PARKWAY NORTH DEERFIELD IL 60015
Abou-oaf Ehab officer: President KCP PO BOX 619100 DALLAS TX 75261
Cunningham Doug officer: President, EMEA PO BOX 619100 DALLAS TX 75261
Mahlan Deirdre director 1201 DOWDELL LANE SAINT HELENA CA 94574
Ramirez Jaime A director 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Azzi Shane officer: Chief Supply Chain Officer PO BOX 619100 DALLAS TX 75261
Ramos Paula officer: Chief Strategy Officer PO BOX 619100 DALLAS TX 75261
Long Robert Edward officer: Chief R&D Officer THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Uribe Gonzalo officer: President, Latin America P.O. BOX 619100 DALLAS TX 75261
Karrmann Sandra R officer: Chief Human Resources Officer P.O. BOX 619100 DALLAS TX 75261-9100
Culver John director 2401 UTAH AVE. S. SUITE 800 SEATTLE WA 98134
Ghory Gustavo Lopez officer: Chief Supply Chain Officer PO BOX 619100 DALLAS TX 75281
Torres Russell officer: President, KCP C/O NEWELL BRANDS INC. 221 RIVER STREET HOBOKEN NJ 07030
Lewis Alison officer: Chief Growth Officer P.O. BOX 619100 DALLAS TX 75261

Kimberly-Clark Headlines

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