Kraft Heinz Co (KHC)

Financial leverage 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
Total assets	US$ in thousands	90,339,000	89,656,000	90,956,000	90,943,000	90,513,000	89,992,000	91,676,000	93,864,000	93,394,000	94,897,000	97,038,000	98,664,000	99,830,000	98,122,000	98,306,000	104,073,000	101,450,000	102,822,000	103,201,000	103,562,000
Total stockholders’ equity	US$ in thousands	49,526,000	49,276,000	49,814,000	49,153,000	48,678,000	48,148,000	48,796,000	49,644,000	49,298,000	50,089,000	49,997,000	50,288,000	50,103,000	49,218,000	49,040,000	51,009,000	51,623,000	51,673,000	51,543,000	51,703,000
Financial leverage ratio		1.82	1.82	1.83	1.85	1.86	1.87	1.88	1.89	1.89	1.89	1.94	1.96	1.99	1.99	2.00	2.04	1.97	1.99	2.00	2.00

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 slight fluctuation over the analysis period. The ratio has ranged from 1.82 to 2.04, indicating that the company has been gradually increasing its level of financial leverage. A financial leverage ratio above 1 suggests that the company relies more on debt to finance its operations than equity.

The increasing trend in the financial leverage ratio could indicate that Kraft Heinz Co has been taking on more debt to fund its growth or other activities. While higher leverage can amplify returns in good times, it also increases financial risk, as higher debt levels bring obligations for interest payments and potential challenges in servicing debt in times of economic downturns.

It would be important for investors and stakeholders to closely monitor Kraft Heinz Co's financial leverage ratio and assess how the company is managing its debt levels and overall financial health.