Kraft Heinz Co (KHC)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	25,904,000	26,385,000	26,412,000	26,384,000	25,729,000	23,928,000	23,469,000	23,040,000	23,202,000	24,866,000	25,001,000	25,170,000	25,036,000	24,643,000	24,255,000	24,180,000	24,202,000	24,222,000	24,591,000	24,854,000
Property, plant and equipment	US$ in thousands	6,987,000	6,813,000	6,866,000	6,776,000	6,619,000	6,417,000	6,568,000	6,602,000	6,680,000	6,588,000	6,611,000	6,579,000	6,681,000	6,558,000	6,777,000	6,813,000	7,055,000	6,926,000	7,023,000	7,031,000
Fixed asset turnover		3.71	3.87	3.85	3.89	3.89	3.73	3.57	3.49	3.47	3.77	3.78	3.83	3.75	3.76	3.58	3.55	3.43	3.50	3.50	3.53

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $25,904,000K ÷ $6,987,000K
= 3.71

The fixed asset turnover ratio for Kraft Heinz Co has fluctuated over the past few years, with values ranging from 3.43 to 3.89. The ratio measures how efficiently the company is generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.

In the recent quarters, the fixed asset turnover ratio has shown some variability, reaching a peak of 3.89 in March 2023 and a low of 3.43 in December 2019. The ratio has generally remained above 3.5, indicating that Kraft Heinz Co has been efficiently utilizing its fixed assets to generate revenue.

It is important for the company to continue monitoring and managing its fixed asset turnover ratio to ensure that it remains at a satisfactory level. Consistent performance in this area can help Kraft Heinz Co optimize its asset utilization and improve overall profitability.