Kraft Heinz Co (KHC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,400,000 | 1,040,000 | 3,445,000 | 3,417,000 | 2,279,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,112,000 | 2,120,000 | 1,957,000 | 2,063,000 | 2,146,000 |
| Total current liabilities | US$ in thousands | 8,037,000 | 9,028,000 | 9,064,000 | 8,061,000 | 7,875,000 |
| Quick ratio | 0.44 | 0.35 | 0.60 | 0.68 | 0.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,400,000K
+ $—K
+ $2,112,000K)
÷ $8,037,000K
= 0.44
The quick ratio of Kraft Heinz Co has demonstrated fluctuations over the past five years. In 2023, the quick ratio stood at 0.44, indicating that the company had $0.44 in liquid assets available to cover each $1 of current liabilities, which suggests a lower level of liquidity compared to the previous year. The quick ratio decreased from 0.35 in 2022 to 0.44 in 2023, signaling a slight improvement in liquidity. However, it is important to note that the quick ratio has been generally decreasing since 2020 when it was at its highest level of 0.68. This downward trend may raise concerns about the company's ability to meet its short-term obligations with its current liquid assets. Further analysis of Kraft Heinz Co's management of its current assets and liabilities is necessary to fully evaluate its liquidity position.
Peer comparison
Dec 31, 2023