The Kraft Heinz Co (XSWX:KHC) Debt-to-EBITDA

: 3.50 (As of Dec. 2023)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

The Kraft Heinz Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF552 Mil. The Kraft Heinz Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF16,772 Mil. The Kraft Heinz Co's annualized EBITDA for the quarter that ended in Dec. 2023 was CHF4,947 Mil. The Kraft Heinz Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.50.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for The Kraft Heinz Co's Debt-to-EBITDA or its related term are showing as below:

XSWX:KHC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.44 Med: 4.39 Max: 8.34
Current: 3.64

During the past 13 years, the highest Debt-to-EBITDA Ratio of The Kraft Heinz Co was 8.34. The lowest was -3.44. And the median was 4.39.

XSWX:KHC's Debt-to-EBITDA is ranked worse than
66.15% of 1418 companies
in the Consumer Packaged Goods industry
Industry Median: 2.135 vs XSWX:KHC: 3.64

The Kraft Heinz Co Debt-to-EBITDA Historical Data

The historical data trend for The Kraft Heinz Co's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Kraft Heinz Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

5.83

8.34

4.68

4.16

3.64

The Kraft Heinz Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA																3.31	3.36	3.09	5.17	3.50

Competitive Comparison

For the Packaged Foods subindustry, The Kraft Heinz Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Kraft Heinz Co Debt-to-EBITDA Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where The Kraft Heinz Co's Debt-to-EBITDA falls into.

The Kraft Heinz Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

The Kraft Heinz Co's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(551.742	+	16771.931)	/	4761.589
	=	3.64

The Kraft Heinz Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(551.742	+	16771.931)	/	4946.656
	=	3.50

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

The Kraft Heinz Co (XSWX:KHC) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The Kraft Heinz Co Debt-to-EBITDA Related Terms

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The Kraft Heinz Co (XSWX:KHC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Kraft Heinz Co (XSWX:KHC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

KHC:USA KHC:Peru KHC:Mexico 1KHC:Italy KHNZd:UK 0JRV:UK KHNZ:Germany KHCB34:Brazil KHC:Austria

Address

One PPG Place, Pittsburgh, PA, USA, 15222

Website

https://www.kraftheinzcompany.com

In July 2015, Kraft merged with Heinz to create the third-largest food and beverage manufacturer in North America behind PepsiCo and Nestle and the fifth-largest player in the world. Beyond its namesake brands, the combined firm's portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm operates a growing presence in the foodservice arena. Outside North America, Kraft Heinz's global reach counts a distribution network in Europe and emerging markets that drives 20%-25% of its consolidated sales base, as its products are sold in more than 190 countries and territories.