Kraft Heinz Co (KHC)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	23,076,000	24,019,000	24,286,000	27,572,000	23,966,000
Inventory	US$ in thousands	3,614,000	3,651,000	2,729,000	2,773,000	2,721,000
Inventory turnover		6.39	6.58	8.90	9.94	8.81

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $23,076,000K ÷ $3,614,000K
= 6.39

The inventory turnover for Kraft Heinz Co has been fluctuating over the past five years. In 2023, the inventory turnover ratio was 6.39, which was slightly lower than the previous year's ratio of 6.58. This indicates that in 2023, the company turned over its inventory approximately 6.39 times during the year, down from 6.58 times in the previous year.

Comparing the current ratio to the ratios of the two preceding years (2021 and 2022) shows a declining trend. In 2021, the inventory turnover was 8.90, significantly higher than both 2022 and 2023, indicating that the company managed its inventory more efficiently in 2021. However, the ratios for 2020 and 2019 were also relatively high at 9.94 and 8.81, respectively.

Overall, Kraft Heinz Co's inventory turnover ratio has shown some variability, with a general downward trend in recent years. This may suggest potential issues with inventory management efficiency, which could impact the company's cash flow and profitability. Further analysis and comparison with industry benchmarks would be necessary to gain a deeper understanding of the company's inventory management performance.