Kraft Heinz Co (KHC)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,334,000 | 1,284,000 | 900,000 | 1,626,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 2,147,000 | 2,178,000 | 2,160,000 | 2,216,000 | 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 |
| Total current liabilities | US$ in thousands | 7,253,000 | 7,728,000 | 7,486,000 | 7,571,000 | 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 |
| Quick ratio | 0.48 | 0.45 | 0.41 | 0.51 | 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 |
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 of Kraft Heinz Co has shown fluctuations over the past few years, ranging from 0.09 to 0.97. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty in meeting its short-term liabilities with its quick assets alone.
Analyzing the trend, we can see that the quick ratio decreased steadily from March 31, 2020, to June 30, 2022, which may raise concerns about the company's liquidity position during that period. However, from September 30, 2022, to December 31, 2024, the quick ratio showed some improvement, hovering around 0.35 to 0.48.
It is important to note that a quick ratio of less than 1 does not necessarily mean that the company is in financial distress, but it does signify a potential risk for liquidity issues. Management should closely monitor this ratio and take appropriate actions to ensure the company's short-term liquidity position remains stable and viable.
Peer comparison
Dec 31, 2024