Kraft Heinz Co (KHC)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover	8.29	6.64	6.83	6.41	6.39	6.23	6.03	6.05	6.58	5.38	5.27	5.47	6.40	7.62	7.84	10.27	9.94	10.78	9.96	8.30
Receivables turnover	12.01	11.54	11.74	11.53	12.15	12.44	11.70	—	12.14	11.64	10.94	11.15	11.86	12.70	12.45	12.11	12.14	12.45	11.86	10.42
Payables turnover	6.68	5.65	5.48	5.19	4.99	5.27	5.06	—	4.95	4.02	3.79	3.67	3.67	4.94	5.03	6.51	6.41	7.08	7.22	5.94
Working capital turnover	64.16	53.01	576.11	38.59	—	769.15	—	—	—	—	—	109.19	—	22.56	16.60	4.52	9.07	10.39	33.41	6.41

The analysis of Kraft Heinz Co's activity ratios reveals some interesting trends.

1. Inventory Turnover: The inventory turnover ratio has been fluctuating over the years, ranging from a high of 10.78 in September 2020 to a low of 5.27 in June 2022. A higher ratio indicates that the company is selling its inventory quickly, which could be a positive sign.

2. Receivables Turnover: The receivables turnover ratio has generally been stable, indicating that the company is efficient in collecting payments from its customers. However, there was a slight decrease in the ratio in March 2024, which might need monitoring.

3. Payables Turnover: The payables turnover ratio has also been relatively stable, with a slight increase over the years. A higher ratio could indicate that the company is taking longer to pay its suppliers, which could impact relationships with vendors.

4. Working Capital Turnover: The working capital turnover ratio has shown significant fluctuations, with some periods having extremely high ratios, such as in September 2023 and June 2024. This could indicate efficient utilization of working capital during those periods.

In conclusion, while the inventory turnover and working capital turnover ratios show some fluctuations, the receivables turnover and payables turnover ratios have been relatively stable. Monitoring these ratios over time can provide insights into the company's efficiency in managing its assets and liabilities.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	44.04	54.98	53.47	56.95	57.16	58.62	60.57	60.34	55.48	67.85	69.28	66.72	57.04	47.87	46.58	35.53	36.71	33.87	36.66	43.99
Days of sales outstanding (DSO)	days	30.38	31.64	31.10	31.66	30.03	29.35	31.19	—	30.08	31.35	33.36	32.75	30.79	28.74	29.32	30.15	30.08	29.31	30.77	35.04
Number of days of payables	days	54.63	64.65	66.57	70.36	73.19	69.22	72.07	—	73.67	90.85	96.42	99.45	99.35	73.86	72.53	56.10	56.98	51.58	50.53	61.47

Based on the provided data for Kraft Heinz Co, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- DOH indicates the number of days a company holds inventory before selling it. Kraft Heinz Co's DOH fluctuated over the quarters, with an average of around 54 days.
- A decreasing trend in DOH from March 2022 to December 2024 suggests improved inventory management efficiency, reaching a low of 44.04 days by the end of 2024.

2. Days of Sales Outstanding (DSO):
- DSO measures how many days it takes for the company to collect revenue after a sale is made. On average, Kraft Heinz Co's DSO was approximately 30 days.
- The company maintained a relatively stable DSO, indicating consistent collections practices across the quarters, with fluctuations within a narrow range.

3. Number of Days of Payables:
- This ratio represents the number of days the company takes to pay its creditors. Kraft Heinz Co's payables days average around 75 days.
- Notably, there was a significant increase in payables days from June 2021 to December 2021, peaking at 99.35 days, which indicates the company took longer to settle its payables during that period.

Overall, it appears that Kraft Heinz Co efficiently managed its inventory levels, maintained stable collection periods, and exhibited some variances in payables days over the quarters. Further analysis and comparison with industry benchmarks would provide a deeper understanding of the company's performance in managing its working capital efficiently.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Fixed asset turnover	3.68	3.52	3.60	3.63	3.67	3.84	3.81	3.86	3.89	3.73	3.57	3.49	3.47	3.77	3.78	3.83	3.75	3.76	3.58	3.55
Total asset turnover	0.29	0.28	0.29	0.28	0.28	0.29	0.29	0.29	0.28	0.27	0.26	0.25	0.25	0.26	0.26	0.26	0.25	0.25	0.25	0.23

The Fixed Asset Turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Kraft Heinz Co's Fixed Asset Turnover ratio has fluctuated over the years but generally remained within the range of 3.47 to 3.89. This indicates that the company has been effective in utilizing its fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio reflects how well a company is utilizing all its assets to generate revenue. Kraft Heinz Co's Total Asset Turnover ratio has shown a slightly increasing trend over time, ranging from 0.23 to 0.29. This suggests that the company has been improving its efficiency in generating sales relative to its total assets.

Overall, Kraft Heinz Co's long-term activity ratios demonstrate a positive trend in asset utilization and efficiency in generating revenue from both fixed and total assets. It indicates that the company has been effectively managing its asset base to drive sales growth and improve overall operational performance.