Kraft Heinz Co. (KHC)


Analysis of Solvency Ratios
Quarterly Data

Beginner level

Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.


Solvency Ratios (Summary)

Kraft Heinz Co., solvency ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Jun 29, 2019 Mar 30, 2019 Dec 29, 2018 Sep 29, 2018 Jun 30, 2018 Mar 31, 2018 Dec 30, 2017 Sep 30, 2017 Jul 1, 2017 Apr 1, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Debt Ratios
Debt to equity 0.59 0.60 0.60 0.60 0.50 0.52 0.49 0.48 0.54 0.53 0.57 0.56 0.57 0.57 0.44 0.44 0.43 2.02 2.00
Debt to capital 0.37 0.38 0.38 0.38 0.33 0.34 0.33 0.32 0.35 0.35 0.36 0.36 0.36 0.36 0.30 0.30 0.30 0.67 0.67
Debt to assets 0.30 0.30 0.30 0.30 0.27 0.28 0.27 0.26 0.26 0.26 0.27 0.27 0.27 0.27 0.21 0.21 0.21 0.38 0.38
Financial leverage 1.99 2.00 2.00 2.00 1.83 1.86 1.82 1.82 2.04 2.05 2.09 2.10 2.10 2.10 2.12 2.13 2.07 5.35 5.33
Coverage Ratios
Interest coverage -7.93 -8.69 -8.30 -7.82 4.54 5.03 5.49 5.48 5.43 5.21 5.17 5.43 5.38 3.82 2.42 1.77

Based on: 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-13), 10-Q (filing date: 2019-08-13), 10-K (filing date: 2019-06-07), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-03-03), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-10), S-4/A (filing date: 2015-05-18).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Kraft Heinz Co.’s debt to equity ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Kraft Heinz Co.’s debt to capital ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Kraft Heinz Co.’s debt to assets ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Kraft Heinz Co.’s financial leverage ratio decreased from Q1 2019 to Q2 2019 and from Q2 2019 to Q3 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Kraft Heinz Co.’s interest coverage ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.

Debt to Equity

Kraft Heinz Co., debt to equity calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Jun 29, 2019 Mar 30, 2019 Dec 29, 2018 Sep 29, 2018 Jun 30, 2018 Mar 31, 2018 Dec 30, 2017 Sep 30, 2017 Jul 1, 2017 Apr 1, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term debt 15  21  973  34  1,001  460  455  1,090  909  645  653  645  —  — 
Current portion of long-term debt 2,545  1,298  1,305  377  405  2,754  2,742  2,743  2,755  19  2,023  2,046  2,047  2,106  133  79  74  10  10 
Long-term debt, excluding current portion 28,112  29,832  29,803  30,770  30,998  31,380  28,561  28,333  28,299  29,979  29,748  29,713  29,980  30,002  25,167  25,151  25,250  13,626  13,616 
Total debt 30,672  31,131  31,110  31,168  32,376  34,168  32,304  31,536  31,509  31,088  32,680  32,404  32,680  32,753  25,300  25,234  25,324  13,638  13,627 
 
Shareholders’ equity 51,673  51,543  51,703  51,657  65,385  65,677  66,248  66,034  58,759  58,333  57,732  57,358  57,642  57,826  58,043  57,685  58,811  6,739  6,810 
Solvency Ratio
Debt to equity1 0.59 0.60 0.60 0.60 0.50 0.52 0.49 0.48 0.54 0.53 0.57 0.56 0.57 0.57 0.44 0.44 0.43 2.02 2.00
Benchmarks
Debt to Equity, Competitors2
Mondelēz International Inc. 0.73 0.74 0.75 0.72 0.79 0.78 0.71 0.68 0.72 0.73 0.72 0.68 0.62 0.63 0.63 0.55 0.55 0.78 0.76

Based on: 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-13), 10-Q (filing date: 2019-08-13), 10-K (filing date: 2019-06-07), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-03-03), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-10), S-4/A (filing date: 2015-05-18).

1 Q3 2019 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 30,672 ÷ 51,673 = 0.59

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Kraft Heinz Co.’s debt to equity ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.

Debt to Capital

Kraft Heinz Co., debt to capital calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Jun 29, 2019 Mar 30, 2019 Dec 29, 2018 Sep 29, 2018 Jun 30, 2018 Mar 31, 2018 Dec 30, 2017 Sep 30, 2017 Jul 1, 2017 Apr 1, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term debt 15  21  973  34  1,001  460  455  1,090  909  645  653  645  —  — 
Current portion of long-term debt 2,545  1,298  1,305  377  405  2,754  2,742  2,743  2,755  19  2,023  2,046  2,047  2,106  133  79  74  10  10 
Long-term debt, excluding current portion 28,112  29,832  29,803  30,770  30,998  31,380  28,561  28,333  28,299  29,979  29,748  29,713  29,980  30,002  25,167  25,151  25,250  13,626  13,616 
Total debt 30,672  31,131  31,110  31,168  32,376  34,168  32,304  31,536  31,509  31,088  32,680  32,404  32,680  32,753  25,300  25,234  25,324  13,638  13,627 
Shareholders’ equity 51,673  51,543  51,703  51,657  65,385  65,677  66,248  66,034  58,759  58,333  57,732  57,358  57,642  57,826  58,043  57,685  58,811  6,739  6,810 
Total capital 82,345  82,674  82,813  82,825  97,761  99,845  98,552  97,570  90,268  89,421  90,412  89,762  90,322  90,579  83,343  82,919  84,135  20,377  20,437 
Solvency Ratio
Debt to capital1 0.37 0.38 0.38 0.38 0.33 0.34 0.33 0.32 0.35 0.35 0.36 0.36 0.36 0.36 0.30 0.30 0.30 0.67 0.67
Benchmarks
Debt to Capital, Competitors2
Mondelēz International Inc. 0.42 0.42 0.43 0.42 0.44 0.44 0.42 0.40 0.42 0.42 0.42 0.41 0.38 0.39 0.39 0.35 0.35 0.44 0.43

Based on: 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-13), 10-Q (filing date: 2019-08-13), 10-K (filing date: 2019-06-07), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-03-03), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-10), S-4/A (filing date: 2015-05-18).

1 Q3 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 30,672 ÷ 82,345 = 0.37

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Kraft Heinz Co.’s debt to capital ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.

Debt to Assets

Kraft Heinz Co., debt to assets calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Jun 29, 2019 Mar 30, 2019 Dec 29, 2018 Sep 29, 2018 Jun 30, 2018 Mar 31, 2018 Dec 30, 2017 Sep 30, 2017 Jul 1, 2017 Apr 1, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Selected Financial Data (US$ in millions)
Commercial paper and other short-term debt 15  21  973  34  1,001  460  455  1,090  909  645  653  645  —  — 
Current portion of long-term debt 2,545  1,298  1,305  377  405  2,754  2,742  2,743  2,755  19  2,023  2,046  2,047  2,106  133  79  74  10  10 
Long-term debt, excluding current portion 28,112  29,832  29,803  30,770  30,998  31,380  28,561  28,333  28,299  29,979  29,748  29,713  29,980  30,002  25,167  25,151  25,250  13,626  13,616 
Total debt 30,672  31,131  31,110  31,168  32,376  34,168  32,304  31,536  31,509  31,088  32,680  32,404  32,680  32,753  25,300  25,234  25,324  13,638  13,627 
 
Total assets 102,822  103,201  103,562  103,461  119,730  121,896  120,787  120,232  120,051  119,416  120,802  120,480  121,080  121,684  123,273  122,973  121,792  36,062  36,293 
Solvency Ratio
Debt to assets1 0.30 0.30 0.30 0.30 0.27 0.28 0.27 0.26 0.26 0.26 0.27 0.27 0.27 0.27 0.21 0.21 0.21 0.38 0.38
Benchmarks
Debt to Assets, Competitors2
Mondelēz International Inc. 0.31 0.30 0.30 0.29 0.31 0.31 0.29 0.28 0.29 0.30 0.30 0.28 0.27 0.27 0.27 0.25 0.25 0.30 0.29

Based on: 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-13), 10-Q (filing date: 2019-08-13), 10-K (filing date: 2019-06-07), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-03-03), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-10), S-4/A (filing date: 2015-05-18).

1 Q3 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 30,672 ÷ 102,822 = 0.30

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Kraft Heinz Co.’s debt to assets ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.

Financial Leverage

Kraft Heinz Co., financial leverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Jun 29, 2019 Mar 30, 2019 Dec 29, 2018 Sep 29, 2018 Jun 30, 2018 Mar 31, 2018 Dec 30, 2017 Sep 30, 2017 Jul 1, 2017 Apr 1, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Selected Financial Data (US$ in millions)
Total assets 102,822  103,201  103,562  103,461  119,730  121,896  120,787  120,232  120,051  119,416  120,802  120,480  121,080  121,684  123,273  122,973  121,792  36,062  36,293 
Shareholders’ equity 51,673  51,543  51,703  51,657  65,385  65,677  66,248  66,034  58,759  58,333  57,732  57,358  57,642  57,826  58,043  57,685  58,811  6,739  6,810 
Solvency Ratio
Financial leverage1 1.99 2.00 2.00 2.00 1.83 1.86 1.82 1.82 2.04 2.05 2.09 2.10 2.10 2.10 2.12 2.13 2.07 5.35 5.33
Benchmarks
Financial Leverage, Competitors2
Mondelēz International Inc. 2.38 2.44 2.48 2.45 2.51 2.50 2.44 2.42 2.43 2.44 2.42 2.45 2.30 2.29 2.30 2.24 2.22 2.64 2.62

Based on: 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-13), 10-Q (filing date: 2019-08-13), 10-K (filing date: 2019-06-07), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-03-03), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-10), S-4/A (filing date: 2015-05-18).

1 Q3 2019 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 102,822 ÷ 51,673 = 1.99

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Kraft Heinz Co.’s financial leverage ratio decreased from Q1 2019 to Q2 2019 and from Q2 2019 to Q3 2019.

Interest Coverage

Kraft Heinz Co., interest coverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Jun 29, 2019 Mar 30, 2019 Dec 29, 2018 Sep 29, 2018 Jun 30, 2018 Mar 31, 2018 Dec 30, 2017 Sep 30, 2017 Jul 1, 2017 Apr 1, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Kraft Heinz 899  449  405  (12,568) 619  754  1,003  8,003  944  1,159  893  944  842  950  896  645  (123) (164) 276 
Add: Net income attributable to noncontrolling interest (1) (1) (1) (60) (1) (1) —  (7) (1) (2) — 
Add: Income tax expense 264  103  217  (1,846) 201  308  270  (6,665) 416  430  359  336  262  411  372  382  (49) (35) 68 
Add: Interest expense 398  316  321  325  326  316  317  308  306  307  313  310  311  264  249  266  460  394  201 
Earnings before interest and tax (EBIT) 1,560  867  942  (14,149) 1,145  1,377  1,590  1,639  1,665  1,897  1,563  1,590  1,416  1,630  1,521  1,296  291  199  548 
Solvency Ratio
Interest coverage1 -7.93 -8.69 -8.30 -7.82 4.54 5.03 5.49 5.48 5.43 5.21 5.17 5.43 5.38 3.82 2.42 1.77

Based on: 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-13), 10-Q (filing date: 2019-08-13), 10-K (filing date: 2019-06-07), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-16), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-K (filing date: 2016-03-03), 10-Q (filing date: 2015-11-06), 10-Q (filing date: 2015-08-10), S-4/A (filing date: 2015-05-18).

1 Q3 2019 Calculation
Interest coverage = (EBITQ3 2019 + EBITQ2 2019 + EBITQ1 2019 + EBITQ4 2018) ÷ (Interest expenseQ3 2019 + Interest expenseQ2 2019 + Interest expenseQ1 2019 + Interest expenseQ4 2018)
= (1,560 + 867 + 942 + -14,149) ÷ (398 + 316 + 321 + 325) = -7.93

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Kraft Heinz Co.’s interest coverage ratio deteriorated from Q1 2019 to Q2 2019 but then improved from Q2 2019 to Q3 2019 exceeding Q1 2019 level.