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KMB (Kimberly-Clark) Financial Strength : 5 (As of Mar. 2025)


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What is Kimberly-Clark Financial Strength?

Kimberly-Clark has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Kimberly-Clark's Interest Coverage for the quarter that ended in Mar. 2025 was 12.02. Kimberly-Clark's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.37. As of today, Kimberly-Clark's Altman Z-Score is 4.26.


Competitive Comparison of Kimberly-Clark's Financial Strength

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's Financial Strength Distribution in the Consumer Packaged Goods Industry

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.


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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 Mar. 2025 was $-64 Mil. Its Operating Income for the months ended in Mar. 2025 was $769 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $6,481 Mil.

Kimberly-Clark's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*769/-64
=12.02

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 Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(766 + 6481) / 19360
=0.37

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 4.26, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.26 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  (NAS:KMB) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of 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

Address
P.O. Box 619100, Dallas, TX, USA, 75261-9100
With more than half of its sales from personal care and another third from consumer tissue products, Kimberly-Clark is a leading manufacturer in the tissue and hygiene realm. Its brand mix includes Huggies, PullUps, Kotex, Depend, Kleenex, and Cottonelle. The firm also operates in the professional segment, partnering with businesses to provide safety and sanitary offerings for the workplace. Kimberly-Clark generates just over half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.
Executives
Andrew Drexler officer: Vice President and Controller C/O GNC HOLDINGS, INC., 300 SIXTH AVENUE, PITTSBURGH PA 15222
Gonzalo Uribe officer: President, Latin America P.O. BOX 619100, DALLAS TX 75261
Jeffrey P. Melucci officer: SVP - General Counsel 351 PHELPS DRIVE, IRVING TX 75038
Doug Cunningham officer: President, EMEA PO BOX 619100, DALLAS TX 75261
Michael D. Hsu officer: Group Pres., NACP C/O KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60048
Tamera Fenske officer: Chief Supply Chain Officer PO BOX 619100, DALLAS TX 75261
Paula Ramos officer: Chief Strategy Officer PO BOX 619100, DALLAS TX 75261
Sandra R Karrmann officer: Chief Human Resources Officer P.O. BOX 619100, DALLAS TX 75261-9100
Mark T Smucker director
Tristram Wilkinson officer: President, EMEA P.O. BOX 619100, DALLAS TX 75261-9100
Zackery A Hicks officer: Chief Digital & Technology Off C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333
Deeptha Khanna director PO BOX 619100, DALLAS TX 75261
Sylvia M Mathews director P.O. BOX 619100, DALLAS TX 75261
Nelson Urdaneta officer: Chief Financial Officer C/O MONDELEZ INTERNATIONAL, INC., THREE PARKWAY NORTH, DEERFIELD IL 60015
Todd Maclin director P.O. BOX 619100, DALLAS TX 75261