KMBCAUTIOUS

KMB Quick Ratio Analysis

0.40x

Updated 57h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to pay short-term debts using its most liquid assets, excluding inventory.

Sector Performance

21th percentile

KMB

0.40x

Sector Median

0.72x

Sector Avg

2.70x

Prior Period

0.37x(Jul 2026)

↑ Improving

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Deep Analysis

The quick ratio measures a company's ability to pay short-term debts using its most liquid assets, excluding inventory.

At 0.40x, KMB has $0.40 of cash and near-cash assets for every $1 of current liabilities due within a year. This is well below the sector median of 0.72x, placing KMB at the 21st percentile among peers, meaning most competitors have stronger short-term liquidity. The year-over-year change is not available, but quarter-over-quarter the ratio rose 8.1%, from 0.37x to 0.40x. The low absolute level signals elevated liquidity risk, though the positive quarterly movement offers a modest offset. This metric directly supports the overall CAUTIOUS verdict, as the current quick ratio is weak relative to the sector and provides limited cushion for unexpected cash needs.

Frequently Asked Questions

What does the Quick Ratio tell investors about KMB?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

Who are KMB's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: OMC (0.67x), KO (0.66x), SIEGY (0.64x), TAP (0.60x), LW (0.60x).

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Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.