Kraft Heinz Co (KHC)

Financial leverage 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
Total assets	US$ in thousands	88,287,000	88,566,000	88,797,000	90,309,000	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
Total stockholders’ equity	US$ in thousands	49,185,000	48,328,000	48,895,000	49,522,000	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
Financial leverage ratio		1.79	1.83	1.82	1.82	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $88,287,000K ÷ $49,185,000K
= 1.79

The financial leverage ratio of Kraft Heinz Co has shown a gradual decrease over the past few years, indicating a trend towards lower leverage. The ratio decreased from 2.04 as of March 31, 2020, to 1.79 as of December 31, 2024. This suggests that the company has been relying less on debt to finance its operations and investments. A lower financial leverage ratio typically signifies a less risky capital structure, as the company has less debt relative to its equity. It could indicate improved financial stability and resilience to economic downturns, as the company is less burdened by interest payments and debt obligations. Overall, the decreasing trend in the financial leverage ratio of Kraft Heinz Co reflects a more conservative approach to financing the company's activities.