Kraft Heinz Co (KHC)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,400,000	1,040,000	3,445,000	3,417,000	2,279,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	8,037,000	9,028,000	9,064,000	8,061,000	7,875,000
Cash ratio		0.17	0.12	0.38	0.42	0.29

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,400,000K + $—K) ÷ $8,037,000K
= 0.17

The cash ratio of Kraft Heinz Co has fluctuated over the past five years, ranging from 0.12 to 0.42. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

In 2023, the cash ratio decreased to 0.17 from 0.12 in 2022. This implies that Kraft Heinz Co had $0.17 in cash and cash equivalents for every dollar of its short-term liabilities in 2023, compared to $0.12 in 2022.

The notable increase in the cash ratio from 0.29 in 2019 to 0.42 in 2020 indicated an improvement in Kraft Heinz Co's liquidity position during that period. However, the subsequent decline in 2021 to 0.38 and further decrease in 2022 and 2023 suggest potential challenges in managing short-term obligations with available cash.

Overall, Kraft Heinz Co's cash ratio trend indicates fluctuations in its liquidity position over the years, which may be influenced by factors such as cash management practices, operating cash flows, and short-term debt obligations. Monitoring this ratio can provide insights into the company's ability to meet its short-term financial obligations.