Kraft Heinz Co (KHC)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	1,334,000	1,400,000	1,040,000	3,445,000	3,417,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	7,253,000	8,037,000	9,028,000	9,064,000	8,061,000
Cash ratio		0.18	0.17	0.12	0.38	0.42

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,334,000K + $—K) ÷ $7,253,000K
= 0.18

The cash ratio of Kraft Heinz Co has been fluctuating over the past five years. As of December 31, 2020, the cash ratio was 0.42, indicating that the company had $0.42 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio decreased to 0.38, suggesting a slight decline in the company's ability to cover its short-term liabilities with cash.

The trend continued as of December 31, 2022, with the cash ratio falling further to 0.12, indicating a significant decrease in liquidity compared to the previous years. It is worth noting that a cash ratio of 0.12 implies that the company had only $0.12 in cash and cash equivalents for every $1 of current liabilities, raising concerns about its short-term financial health.

However, there was a slight improvement in the cash ratio by December 31, 2023, when it increased to 0.17. This uptick may suggest that Kraft Heinz Co took steps to strengthen its liquidity position compared to the previous year. By December 31, 2024, the cash ratio further improved to 0.18, although it remains lower than the levels seen in 2020 and 2021.

Overall, the varying cash ratios of Kraft Heinz Co over the five-year period indicate fluctuations in the company's ability to cover its short-term obligations with cash. Investors and analysts may need to monitor this metric closely to assess the company's liquidity position and financial health.