Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Kraft Foods Group Inc., liquidity ratios
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Current ratio | 1.00 | 1.44 | 1.34 | |
| Quick ratio | 0.50 | 0.80 | 0.65 | |
| Cash ratio | 0.27 | 0.49 | 0.35 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Kraft Foods Group Inc. current ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Kraft Foods Group Inc. quick ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Kraft Foods Group Inc. cash ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Current Ratio
Kraft Foods Group Inc., current ratio calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current assets | 4,791) | 4,908) | 4,823) | |
| Current liabilities | 4,773) | 3,410) | 3,606) | |
| Liquidity Ratio | ||||
| Current ratio1 | 1.00 | 1.44 | 1.34 | |
| Benchmarks | ||||
| Current Ratio, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,791 ÷ 4,773 = 1.00
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Kraft Foods Group Inc. current ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Quick Ratio
Kraft Foods Group Inc., quick ratio calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Cash and cash equivalents | 1,293) | 1,686) | 1,255) | |
| Receivables, net of allowances | 1,080) | 1,048) | 1,089) | |
| Total quick assets | 2,373) | 2,734) | 2,344) | |
| Current liabilities | 4,773) | 3,410) | 3,606) | |
| Liquidity Ratio | ||||
| Quick ratio1 | 0.50 | 0.80 | 0.65 | |
| Benchmarks | ||||
| Quick Ratio, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,373 ÷ 4,773 = 0.50
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Kraft Foods Group Inc. quick ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Cash Ratio
Kraft Foods Group Inc., cash ratio calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Cash and cash equivalents | 1,293) | 1,686) | 1,255) | |
| Total cash assets | 1,293) | 1,686) | 1,255) | |
| Current liabilities | 4,773) | 3,410) | 3,606) | |
| Liquidity Ratio | ||||
| Cash ratio1 | 0.27 | 0.49 | 0.35 | |
| Benchmarks | ||||
| Cash Ratio, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,293 ÷ 4,773 = 0.27
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Kraft Foods Group Inc. cash ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |