Kraft Heinz Co (KHC)

Payables 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
Payables	US$ in thousands	4,188,000	4,627,000	4,848,000	4,753,000	4,304,000
Payables turnover		6.68	4.99	4.95	5.11	6.41

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $27,981,000K ÷ $4,188,000K
= 6.68

The payables turnover ratio for Kraft Heinz Co has shown a fluctuating trend over the years. In 2020, the payables turnover ratio was 6.41, indicating that the company converted its accounts payable into cash 6.41 times during the year. However, this ratio decreased to 5.11 in 2021, indicating a decrease in the efficiency of managing payables.

Subsequently, in 2022, the payables turnover ratio further decreased to 4.95, suggesting a slower rate of conversion of accounts payable into cash. However, in 2023, there was a slight improvement as the ratio increased to 4.99. This indicates that the company was able to manage its payables slightly more efficiently in that year.

Finally, in 2024, the payables turnover ratio significantly improved to 6.68, surpassing the ratio in 2020. This could signify a more efficient management of accounts payable and better utilization of cash resources.

Overall, the trend in the payables turnover ratio for Kraft Heinz Co shows some variability, with improvements and declines in different years. It is essential for the company to monitor and manage its payables effectively to ensure optimal utilization of resources and maintain a healthy financial position.