Kraft Heinz Co (KHC)
Quick ratio
| 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 | US$ in thousands | 1,400,000 | 1,052,000 | 947,000 | 826,000 | 1,040,000 | 997,000 | 1,518,000 | 2,978,000 | 3,445,000 | 2,273,000 | 3,941,000 | 2,360,000 | 3,417,000 | 2,720,000 | 2,812,000 | 5,403,000 | 2,279,000 | 2,315,000 | 1,452,000 | 1,096,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 2,112,000 | 2,103,000 | 2,237,000 | — | 2,120,000 | 2,055,000 | 2,145,000 | 2,067,000 | 1,957,000 | 1,958,000 | 2,008,000 | 2,079,000 | 2,063,000 | 1,979,000 | 2,045,000 | 2,321,000 | 2,146,000 | 2,078,000 | 2,154,000 | 2,095,000 |
| Total current liabilities | US$ in thousands | 8,037,000 | 7,804,000 | 8,385,000 | 8,954,000 | 9,028,000 | 8,686,000 | 9,119,000 | 9,064,000 | 9,064,000 | 8,455,000 | 9,879,000 | 7,570,000 | 8,061,000 | 7,694,000 | 8,050,000 | 7,934,000 | 7,875,000 | 9,112,000 | 7,797,000 | 7,972,000 |
| 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 |
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 fluctuated over the past few years, indicating varying levels of the company's ability to meet its short-term obligations with its most liquid assets. In the most recent quarter, the quick ratio was 0.44, showing an improvement from the previous quarter. However, caution should be exercised as the quick ratio was significantly low in the quarter ending March 31, 2023, at 0.09, suggesting potential liquidity challenges.
Looking at a longer-term trend, the quick ratio has generally been above 0.5 in recent years, with some quarters exceeding 0.6, indicating a relatively healthy liquidity position for the company. The highest quick ratio observed was 0.97 in the quarter ending March 31, 2020, implying a strong ability to cover short-term obligations with liquid assets.
Overall, while the quick ratio has shown some variability, it is essential to monitor it closely to ensure that the company maintains a sufficient level of liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023