Kraft Heinz Co (KHC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.99 | 0.87 | 0.99 | 1.34 | 1.03 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,929,000K ÷ $8,037,000K
= 0.99
The current ratio, a measure of a company's liquidity and ability to meet short-term obligations, for Kraft Heinz Co has fluctuated over the past five years. As of December 31, 2023, the current ratio stands at 0.99, indicating that the company's current assets are nearly equal to its current liabilities.
Comparing this to the ratios from the previous years, we see a decrease from 0.87 in 2022 and an increase from 0.99 in 2021. The significant decrease from 1.34 in 2020 to 0.99 in 2023 raises some concerns about the company's ability to cover its short-term obligations with its current assets.
Furthermore, the current ratio of 0.99 in 2023 is lower than the industry average which may suggest potential liquidity challenges for Kraft Heinz Co. It is important for the company to closely monitor and manage its current assets and liabilities to ensure stability and efficiency in its operations.
Peer comparison
Dec 31, 2023