Kraft Heinz Co (KHC)
Payables 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 |
| Payables | US$ in thousands | 4,627,000 | 4,463,000 | 4,545,000 | — | 4,848,000 | 4,733,000 | 4,778,000 | 4,610,000 | 4,753,000 | 4,380,000 | 4,391,000 | 4,225,000 | 4,304,000 | 4,052,000 | 3,880,000 | 3,956,000 | 4,003,000 | 4,156,000 | 4,153,000 | 4,184,000 |
| Payables turnover | 4.79 | 5.07 | 4.86 | — | 4.95 | 4.02 | 3.79 | 3.67 | 3.67 | 4.94 | 5.03 | 6.51 | 6.41 | 7.08 | 7.22 | 5.94 | 5.98 | 12.98 | 13.14 | 12.89 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $22,166,000K ÷ $4,627,000K
= 4.79
Kraft Heinz Co's payables turnover ratio has fluctuated over the past few quarters, indicating variations in how efficiently the company is managing its accounts payable. The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period.
In the most recent quarter listed, the payables turnover ratio was 4.79, which was slightly lower than the previous quarter at 5.07. This suggests that the company took longer to pay off its suppliers in that quarter compared to the prior quarter.
Looking at the trend over the past few years, the payables turnover ratio has shown some volatility, ranging from a low of 3.67 to a high of 12.98. The significant peak at 12.98, which occurred in the first quarter of 2019, indicates that the company was managing its accounts payable exceptionally well by paying off its obligations almost 13 times during that period.
Overall, fluctuations in the payables turnover ratio can be influenced by various factors such as changes in payment terms with suppliers, seasonal variations in business operations, or shifts in purchasing patterns. Further analysis would be needed to understand the specific reasons behind the changes in Kraft Heinz Co's payables turnover ratio and assess the implications for the company's financial performance and working capital management.
Peer comparison
Dec 31, 2023