Kraft Heinz Co (KHC)
Payables 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 |
| Payables | US$ in thousands | 4,627,000 | 4,848,000 | 4,753,000 | 4,304,000 | 4,003,000 |
| Payables turnover | 4.99 | 4.95 | 5.11 | 6.41 | 5.99 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $23,076,000K ÷ $4,627,000K
= 4.99
The payables turnover ratio for Kraft Heinz Co has exhibited fluctuations over the past five years. The ratio decreased slightly from 6.41 in 2020 to 4.95 in 2022, before increasing to 4.99 in 2023. This indicates that the company took longer to pay its suppliers in 2022 than in the preceding and subsequent years. A lower payables turnover ratio could suggest potential liquidity issues or changes in the company's payment terms with suppliers. However, the ratio improved in 2023, albeit still below the levels seen in 2020 and 2019. It is important for Kraft Heinz Co to closely monitor its payables turnover ratio to manage its working capital effectively and maintain healthy supplier relationships.
Peer comparison
Dec 31, 2023