Kraft Heinz Co (KHC)

Liquidity 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
Current ratio 0.99 1.00 0.95 0.92 0.87 0.90 0.89 1.02 0.99 1.13 1.15 1.74 1.34 1.31 1.09 1.48 1.03 1.00 1.18 1.11
Quick ratio 0.44 0.40 0.38 0.09 0.35 0.35 0.40 0.56 0.60 0.50 0.60 0.59 0.68 0.61 0.60 0.97 0.56 0.48 0.46 0.40
Cash ratio 0.17 0.13 0.11 0.09 0.12 0.11 0.17 0.33 0.38 0.27 0.40 0.31 0.42 0.35 0.35 0.68 0.29 0.25 0.19 0.14

The liquidity ratios of Kraft Heinz Co show variations over time, indicating fluctuations in the company's ability to meet its short-term obligations.

The current ratio, which measures the company's ability to cover current liabilities with current assets, has shown some volatility, ranging from a low of 0.87 to a high of 1.74. A current ratio below 1 suggests potential liquidity issues, while a ratio above 1 indicates a healthy liquidity position. In general, Kraft Heinz Co has maintained current ratios above 1, although there were periods where it dipped below this threshold.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Kraft Heinz Co's quick ratio has varied significantly, with values as low as 0.09 and as high as 0.97. A quick ratio below 1 indicates potential difficulties in meeting immediate obligations without relying on inventory sales.

The cash ratio, which focuses solely on the company's ability to cover current liabilities with cash and cash equivalents, has also fluctuated. Kraft Heinz Co's cash ratio has ranged from 0.09 to 0.68, reflecting the company's ability to settle short-term liabilities with readily available funds.

Overall, the liquidity ratios of Kraft Heinz Co suggest that the company has experienced some challenges in maintaining optimal liquidity levels over the analyzed periods. Management may need to closely monitor and improve the company's liquidity position to ensure financial stability and meet its short-term obligations effectively.

See also:

Kraft Heinz Co Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 13.08 18.06 18.94 62.69 11.89 8.35 6.22 0.02 -11.52 2.75 3.36 9.58 9.81 11.61 16.90 17.55 12.83 24.56 24.76 23.55

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. Kraft Heinz Co's cash conversion cycle has fluctuated over the past few years, indicating changes in its efficiency in managing its working capital.

On December 31, 2023, the cash conversion cycle was 13.08 days, showing an improvement from the prior quarter. However, in March 31, 2023, the cycle increased significantly to 62.69 days, which could signal potential issues with inventory management or collection of receivables. The negative cash conversion cycle in March 31, 2022, could be an anomaly or may suggest aggressive policies in managing working capital.

Overall, Kraft Heinz Co's cash conversion cycle has shown variability, with some periods of efficient working capital management and others where improvements may be needed. Monitoring trends in the cash conversion cycle can provide insights into the company's operational efficiency and financial health.