Kraft Heinz Co (KHC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided solvency ratios for Kraft Heinz Co, we can see that the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently remained at 0.00 over the time periods specified. This indicates that the company has not been relying heavily on debt to finance its operations or investments and has maintained a strong financial position in terms of its capital structure.
However, the financial leverage ratio has shown some variability over the periods, ranging from 1.82 to 2.04. This ratio measures the extent to which the company is using debt to finance its assets. The upward trend in the financial leverage ratio over time suggests an increasing reliance on debt, which could potentially lead to higher financial risk for the company if not managed prudently.
Overall, while the company's lack of debt as reflected in the debt-related ratios is a positive indicator of its solvency and financial strength, the increasing financial leverage ratio warrants attention to ensure sustainable long-term financial health and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.99 | 5.16 | 5.24 | 4.36 | 4.21 | 2.06 | 2.15 | 2.05 | 1.83 | 2.98 | 3.11 | 1.79 | 1.74 | 1.05 | 1.22 | 2.91 | 2.96 | -7.88 | -8.64 | -8.25 |
The interest coverage ratio for Kraft Heinz Co has shown fluctuations over the periods analyzed. A higher interest coverage ratio indicates a company's ability to meet its interest obligations on outstanding debt.
Looking at the trend, the interest coverage ratio has generally improved from negative figures in 2019 to positive figures in recent periods. The ratio peaked at 5.24 in June 2023, reflecting a stronger ability to cover interest expenses using operating profits.
However, there are some periods where the interest coverage ratio declined, such as in March 2021 and March 2023, which could indicate potential challenges in meeting interest obligations from operating income alone.
Overall, investors and creditors may view Kraft Heinz Co's interest coverage ratio positively in recent periods compared to the negative ratios observed in 2019. However, the fluctuations in the ratio suggest the need for monitoring the company's ability to generate sufficient operating income to cover interest expenses.