Kraft Heinz Co (KHC)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	12.27	12.55	11.81	—	12.14	11.64	10.94	11.15	11.86	12.70	12.45	12.11	12.14	12.45	11.86	10.42	11.28	11.66	11.42	11.86
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
Working capital turnover	—	776.03	—	—	—	—	—	109.19	—	22.56	16.60	4.52	9.07	10.39	33.41	6.41	109.02	1,863.23	17.94	28.80

The analysis of Kraft Heinz Co's activity ratios reveals the following trends:

1. Inventory Turnover: The company's inventory turnover has been relatively stable over the last two years but experienced a significant decline in the most recent quarter compared to the same period last year. This indicates that Kraft Heinz Co is taking longer to turn over its inventory, which may suggest potential issues with sales or production efficiency.

2. Receivables Turnover: Kraft Heinz Co's receivables turnover has shown some fluctuations, but generally, the company is efficient in collecting payments from its customers. The turnover ratio has been consistent over the past two years, indicating that the company has been managing its accounts receivable effectively.

3. Payables Turnover: The payables turnover for Kraft Heinz Co has also fluctuated but has been relatively stable over the last two years. A lower payables turnover means that the company is taking longer to pay its suppliers, which could potentially strain relationships or impact cash flow management.

4. Working Capital Turnover: The working capital turnover for Kraft Heinz Co shows significant variability with some quarters showing extremely high ratios. This suggests that the company has been managing its working capital efficiently, turning it over multiple times in a given period. However, the lack of data for some quarters makes it challenging to assess the overall trend accurately.

In summary, while Kraft Heinz Co demonstrates efficiency in managing its receivables turnover, it may need to focus on improving inventory turnover and optimizing payables turnover for better working capital management. Continual monitoring of these activity ratios will be crucial for assessing the company's operational efficiency and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	59.51	60.97	63.07	62.69	55.48	67.85	69.28	66.72	57.04	47.87	46.58	35.53	36.71	33.87	36.66	43.99	41.46	21.37	20.56	21.10
Days of sales outstanding (DSO)	days	29.76	29.09	30.91	—	30.08	31.35	33.36	32.75	30.79	28.74	29.32	30.15	30.08	29.31	30.77	35.04	32.36	31.31	31.97	30.77
Number of days of payables	days	76.19	72.01	75.04	—	73.67	90.85	96.42	99.45	99.35	73.86	72.53	56.10	56.98	51.58	50.53	61.47	61.00	28.13	27.77	28.32

Days of Inventory on Hand (DOH) for Kraft Heinz Co have been increasing over the past quarters, indicating that the company is holding onto inventory for a longer period before selling it. This could potentially lead to higher carrying costs and the risk of obsolescence.

Days of Sales Outstanding (DSO) have been relatively stable over the periods provided, suggesting that Kraft Heinz Co is efficient in collecting payments from its customers. A lower DSO indicates that the company is able to convert sales into cash quickly.

The Number of Days of Payables for Kraft Heinz Co has fluctuated over the periods, but generally, it seems that the company is taking longer to pay its suppliers. A longer payable period can benefit the company by allowing it to hold onto cash longer; however, it may strain relationships with suppliers if the terms become too extended.

Overall, the activity ratios suggest that Kraft Heinz Co may need to focus on managing its inventory levels more effectively to improve efficiency and liquidity. Additionally, the company should monitor its payable periods to ensure a balance between cash flow optimization and maintaining good relationships with suppliers.

Long-term

	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
Fixed asset turnover	3.71	3.87	3.85	3.89	3.89	3.73	3.57	3.49	3.47	3.77	3.78	3.83	3.75	3.76	3.58	3.55	3.43	3.50	3.50	3.53
Total asset turnover	0.29	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	0.24	0.24	0.24	0.24

The Fixed Asset Turnover ratio for Kraft Heinz Co has been hovering around 3.7 to 3.9 over the past several quarters, indicating that the company generates approximately $3.70 to $3.90 in sales revenue for every dollar invested in fixed assets. This suggests that the company is efficient in utilizing its fixed assets to generate revenue.

On the other hand, the Total Asset Turnover ratio for Kraft Heinz Co has remained relatively stable at around 0.25 to 0.29. This indicates that the company generates approximately $0.25 to $0.29 in sales revenue for every dollar invested in total assets. While this ratio is lower compared to the Fixed Asset Turnover ratio, it is indicative of the company's ability to efficiently generate revenue from its total asset base.

In summary, Kraft Heinz Co exhibits a consistent and efficient utilization of both fixed assets and total assets to generate sales revenue, as evidenced by relatively stable and reasonable turnover ratios over the analyzed period.