Kraft Heinz Co (KHC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.79 | 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 |
Kraft Heinz Co has consistently maintained a strong solvency position over the years, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, which have all been consistently at 0.00. This suggests that the company has been operating with relatively low levels of debt compared to its assets, capital, and equity.
Furthermore, the financial leverage ratio has shown a decreasing trend over the years, from 2.04 in March 2020 to 1.79 in December 2024. This reduction in financial leverage indicates that the company has been effectively managing its debt levels in relation to its equity, leading to a more stable financial structure.
Overall, the solvency ratios demonstrate that Kraft Heinz Co has maintained a strong financial position with minimal reliance on debt financing, indicating a lower risk of financial distress and a solid foundation for future growth and investment opportunities.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.94 | 3.24 | 4.06 | 4.97 | 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 |
The interest coverage ratio of Kraft Heinz Co has shown fluctuations over the time period provided. The interest coverage ratio represents the company's ability to cover its interest expenses with its operating income. A higher ratio indicates a healthier financial position and lower risk of default.
Based on the data provided, Kraft Heinz Co had an interest coverage ratio of around 2.91 in March 2020, which declined to 1.22 in June 2020 and further decreased to 1.05 in September 2020. This downward trend may raise concerns about the company's ability to meet its interest obligations adequately.
However, the interest coverage ratio improved to 1.74 by December 2020 and continued to fluctuate over the following quarters, reaching peaks of 5.24 in June 2023 and 5.16 in September 2023. These higher ratios suggest that Kraft Heinz Co was more comfortably able to cover its interest expenses during those periods.
It is important to note that a sustained interest coverage ratio below 1 may indicate that the company is not generating enough operating income to cover its interest expenses, potentially leading to financial distress. Conversely, a consistently high ratio indicates a strong financial position and a lower risk of default. Overall, analyzing the interest coverage ratio provides insights into Kraft Heinz Co's ability to meet its interest obligations and manage its debt effectively.