Kraft Heinz Co (KHC)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	22,166,000	22,622,000	22,108,000	23,384,000	24,019,000	19,016,000	18,087,000	16,920,000	17,462,000	21,645,000	22,096,000	27,487,000	27,572,000	28,675,000	28,028,000	23,490,000	23,953,000	53,935,000	54,576,000	53,928,000
Inventory	US$ in thousands	3,614,000	3,779,000	3,820,000	4,016,000	3,651,000	3,535,000	3,433,000	3,093,000	2,729,000	2,839,000	2,820,000	2,676,000	2,773,000	2,661,000	2,815,000	2,831,000	2,721,000	3,158,000	3,074,000	3,118,000
Inventory turnover		6.13	5.99	5.79	5.82	6.58	5.38	5.27	5.47	6.40	7.62	7.84	10.27	9.94	10.78	9.96	8.30	8.80	17.08	17.75	17.30

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $22,166,000K ÷ $3,614,000K
= 6.13

The inventory turnover ratio for Kraft Heinz Co has shown fluctuations over the past quarters. The ratio measures how many times a company sells and replaces its inventory during a certain period. A higher inventory turnover ratio indicates that the company is selling its inventory quickly.

In the most recent quarter, the inventory turnover ratio was 6.13, slightly lower than the previous quarter at 5.99. Despite this slight decrease, the company has maintained a relatively stable turnover rate over the past year, with variations between 5.27 to 10.27.

Compared to the same quarter in the previous year, the inventory turnover rate has decreased from 10.27 to 6.13, indicating that the company may be taking longer to sell its inventory. However, it is important to note that fluctuations in the inventory turnover ratio can be influenced by various factors such as seasonality, changes in consumer demand, and inventory management practices.

Overall, the analysis of Kraft Heinz Co's inventory turnover suggests that the company has managed to maintain a moderate turnover rate, but there may be room for improvement in optimizing inventory management efficiency to increase the rate of inventory turnover.