Kraft Heinz Co (KHC)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	25,669,000	25,743,000	23,232,000	24,638,000	24,040,000
Total current assets	US$ in thousands	7,929,000	7,897,000	8,994,000	10,822,000	8,097,000
Total current liabilities	US$ in thousands	8,037,000	9,028,000	9,064,000	8,061,000	7,875,000
Working capital turnover		—	—	—	8.92	108.29

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $25,669,000K ÷ ($7,929,000K – $8,037,000K)
= —

The working capital turnover for Kraft Heinz Co has shown a significant decline over the years, from 108.29 in 2019 to 8.92 in 2020 and now to an unspecified figure in the later years. A working capital turnover ratio measures how effectively a company is using its working capital to generate revenue. The sharp drop in the ratio from 2019 to 2020 may indicate inefficiencies in managing working capital or a change in business operations.

However, without the specific data for the later years, it is challenging to provide a detailed analysis. Generally, a higher working capital turnover ratio is preferable as it suggests that the company is efficiently utilizing its current assets to support sales. A decreasing trend in this ratio may warrant further investigation into the company's liquidity management and operational efficiency.