The Kraft Heinz Co has a quick ratio of 0.54. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for The Kraft Heinz Co's Quick Ratio or its related term are showing as below:
KHC'
s Quick Ratio Range Over the Past 10 Years
Min: 0.44 Med: 0.66 Max: 1.03
Current: 0.54
During the past 13 years, The Kraft Heinz Co's highest Quick Ratio was 1.03. The lowest was 0.44. And the median was 0.66.
KHC's Quick Ratio is ranked worse than 79.11% of 1910
companies
in the Consumer Packaged Goods industry
Industry Median: 1.03
vs KHC: 0.54
The Kraft Heinz Co Quick Ratio Historical Data
The historical data trend for The Kraft Heinz Co's Quick Ratio 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.
Competitive Comparison of The Kraft Heinz Co's Quick Ratio
For the Packaged Foods subindustry, The Kraft Heinz Co's Quick Ratio, along with its competitors' market caps and Quick Ratio 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's Quick Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where The Kraft Heinz Co's Quick Ratio falls into.
The Kraft Heinz Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
The Kraft Heinz Co's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
The Kraft Heinz Co (NAS:KHC) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
The Kraft Heinz Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of The Kraft Heinz Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
The Kraft Heinz Co (The Kraft Heinz Co) Business Description
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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
KHC has been successfully added to your 