Kraft Heinz Co (KHC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,554,000 | 3,882,000 | 3,743,000 | 2,419,000 | 4,024,000 |
| Interest expense | US$ in thousands | 912,000 | 921,000 | 2,047,000 | 1,394,000 | 1,361,000 |
| Interest coverage | 4.99 | 4.21 | 1.83 | 1.74 | 2.96 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,554,000K ÷ $912,000K
= 4.99
Based on the data provided, the interest coverage ratio for Kraft Heinz Co has fluctuated over the past five years.
In 2023, the interest coverage ratio improved to 4.99, indicating the company's ability to cover its interest expenses nearly five times with its operating income. This represents a positive trend compared to the previous year.
In 2022, the interest coverage ratio was 4.21, which also demonstrates a strong ability to meet interest obligations. However, the ratio was lower than the following year.
In 2021, there was a notable increase in the interest coverage ratio to 1.83, suggesting that the company's operating income was able to cover its interest expenses almost twice over. This improvement was likely a positive sign for investors and creditors.
In 2020 and 2019, the interest coverage ratios were 1.74 and 2.96, respectively. While these ratios indicate that the company could cover its interest expenses, they were relatively lower compared to the subsequent years.
Overall, the improving trend in the interest coverage ratio from 2019 to 2023 suggests a strengthening financial position for Kraft Heinz Co in terms of its ability to meet interest obligations with its operating income.
Peer comparison
Dec 31, 2023