Kraft Heinz Co (KHC)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	27,981,000	23,076,000	24,019,000	24,286,000	27,572,000
Inventory	US$ in thousands	3,376,000	3,614,000	3,651,000	2,729,000	2,773,000
Inventory turnover		8.29	6.39	6.58	8.90	9.94

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $27,981,000K ÷ $3,376,000K
= 8.29

The inventory turnover for Kraft Heinz Co has varied over the years based on the provided data. In December 31, 2020, the inventory turnover was 9.94, indicating that the company's inventory was sold and replaced approximately 9.94 times during that year.

In the following year, December 31, 2021, the inventory turnover decreased to 8.90, suggesting a slightly slower rate of inventory turnover compared to the previous year. This could imply that the company took longer to sell and replace its inventory during this period.

The trend continued with a further decrease in inventory turnover to 6.58 in December 31, 2022, and a slight decrease to 6.39 in December 31, 2023. These declining inventory turnover figures could signify challenges in managing inventory levels efficiently or slower sales turnover during these years.

However, there was a rebound in the inventory turnover to 8.29 in December 31, 2024, showing an improvement in the rate at which the company was selling and replacing its inventory. This could indicate better inventory management practices or increased demand for Kraft Heinz Co's products.

Overall, fluctuations in inventory turnover can provide insights into a company's ability to manage its inventory efficiently and effectively meet customer demand. Monitoring this ratio over time can help assess operational performance and identify areas for improvement within the supply chain and sales processes.