Kraft Heinz Co (KHC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 90,339,000 | 90,513,000 | 93,394,000 | 99,830,000 | 101,450,000 |
| Total stockholders’ equity | US$ in thousands | 49,526,000 | 48,678,000 | 49,298,000 | 50,103,000 | 51,623,000 |
| Financial leverage ratio | 1.82 | 1.86 | 1.89 | 1.99 | 1.97 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $90,339,000K ÷ $49,526,000K
= 1.82
The financial leverage ratio of Kraft Heinz Co has shown a decreasing trend over the past five years, with the ratio declining from 1.97 in 2019 to 1.82 in 2023. This indicates that the company's reliance on debt to finance its operations has decreased over the period. A lower financial leverage ratio suggests that the company is using proportionally less debt to fund its assets and operations compared to its equity. It can imply a more conservative financial structure and potentially lower financial risk for the company. However, it is essential to assess other financial metrics alongside the financial leverage ratio to gain a comprehensive understanding of Kraft Heinz Co's overall financial health and performance.
Peer comparison
Dec 31, 2023