Kraft Heinz Co (KHC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,334,000 | 1,400,000 | 1,040,000 | 3,445,000 | 3,417,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,147,000 | 2,112,000 | 2,120,000 | 1,957,000 | 2,063,000 |
| Total current liabilities | US$ in thousands | 7,253,000 | 8,037,000 | 9,028,000 | 9,064,000 | 8,061,000 |
| Quick ratio | 0.48 | 0.44 | 0.35 | 0.60 | 0.68 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,334,000K
+ $—K
+ $2,147,000K)
÷ $7,253,000K
= 0.48
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets.
Analyzing Kraft Heinz Co's quick ratio over the years reveals a fluctuating trend. In December 31, 2020, the quick ratio was 0.68, indicating that the company had $0.68 in liquid assets available to cover each dollar of its current liabilities. However, by December 31, 2021, the quick ratio decreased to 0.60. This decrease suggests a potential weakening in the company's ability to meet its short-term obligations without relying on inventory.
Subsequently, the quick ratio continued to decline to 0.35 by December 31, 2022, indicating a significant reduction in liquidity resources compared to current liabilities. This downward trend may signify potential challenges in meeting immediate financial obligations without facing liquidity strains.
However, there was a slight improvement in the quick ratio to 0.44 by December 31, 2023, suggesting a partial recovery in the company's liquidity position. The subsequent increase to 0.48 by December 31, 2024, further indicates a strengthening in the company's ability to meet short-term obligations with available liquid assets.
Overall, the fluctuating trend in Kraft Heinz Co's quick ratio reflects varying levels of liquidity over the years, with potential implications for the company's short-term financial health and ability to cover immediate liabilities.
Peer comparison
Dec 31, 2024