Kraft Heinz Co (KHC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,669,000 | 25,743,000 | 23,232,000 | 24,638,000 | 24,040,000 |
| Property, plant and equipment | US$ in thousands | 6,987,000 | 6,619,000 | 6,680,000 | 6,681,000 | 7,055,000 |
| Fixed asset turnover | 3.67 | 3.89 | 3.48 | 3.69 | 3.41 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $25,669,000K ÷ $6,987,000K
= 3.67
The fixed asset turnover ratio for Kraft Heinz Co has been fluctuating over the past five years. In 2023, the ratio decreased to 3.67 from 3.89 in 2022, indicating that the company generated $3.67 in revenue for every dollar of fixed assets it owns.
Although the ratio decreased in 2023, it remains relatively high compared to previous years, suggesting that the company is efficient in utilizing its fixed assets to generate sales. This efficiency indicates that management has been successful in maximizing the productivity of its fixed assets in generating revenue.
Overall, the trend in fixed asset turnover for Kraft Heinz Co shows fluctuations but generally indicates effective use of fixed assets to generate sales revenue. It is important for the company to continue monitoring and optimizing its fixed asset utilization to ensure sustained operational efficiency.
Peer comparison
Dec 31, 2023