Stock Analysis on Net

Kraft Heinz Co. (NASDAQ:KHC)

This company has been moved to the archive! The financial data has not been updated since July 31, 2020.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Kraft Heinz Co., short-term (operating) activity ratios

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Turnover Ratios
Inventory turnover 6.19 6.50 5.87 6.30 4.80
Receivables turnover 12.66 12.34 28.48 34.44 21.05
Payables turnover 4.20 4.18 3.72 4.23 4.42
Working capital turnover 112.51 16.71 6.44
Average No. Days
Average inventory processing period 59 56 62 58 76
Add: Average receivable collection period 29 30 13 11 17
Operating cycle 88 86 75 69 93
Less: Average payables payment period 87 87 98 86 83
Cash conversion cycle 1 -1 -23 -17 10

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Kraft Heinz Co. inventory turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Kraft Heinz Co. receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Kraft Heinz Co. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Kraft Heinz Co. number of days of receivables outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Kraft Heinz Co. operating cycle deteriorated from 2017 to 2018 and from 2018 to 2019.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Kraft Heinz Co. cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

Kraft Heinz Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of products sold 16,830 17,347 16,529 16,901 12,577
Inventories 2,721 2,667 2,815 2,684 2,618
Short-term Activity Ratio
Inventory turnover1 6.19 6.50 5.87 6.30 4.80
Benchmarks
Inventory Turnover, Competitors2
Coca-Cola Co. 4.33
Mondelēz International Inc. 6.10
PepsiCo Inc. 9.03
Inventory Turnover, Sector
Food, Beverage & Tobacco 6.51
Inventory Turnover, Industry
Consumer Staples 8.39

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Inventory turnover = Cost of products sold ÷ Inventories
= 16,830 ÷ 2,721 = 6.19

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Kraft Heinz Co. inventory turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Receivables Turnover

Kraft Heinz Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net sales 24,977 26,268 26,232 26,487 18,338
Trade receivables, net of allowances 1,973 2,129 921 769 871
Short-term Activity Ratio
Receivables turnover1 12.66 12.34 28.48 34.44 21.05
Benchmarks
Receivables Turnover, Competitors2
Coca-Cola Co. 9.38
Mondelēz International Inc. 11.69
PepsiCo Inc. 8.59
Receivables Turnover, Sector
Food, Beverage & Tobacco 9.30
Receivables Turnover, Industry
Consumer Staples 34.01

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Receivables turnover = Net sales ÷ Trade receivables, net of allowances
= 24,977 ÷ 1,973 = 12.66

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Kraft Heinz Co. receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Payables Turnover

Kraft Heinz Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of products sold 16,830 17,347 16,529 16,901 12,577
Trade payables 4,003 4,153 4,449 3,996 2,844
Short-term Activity Ratio
Payables turnover1 4.20 4.18 3.72 4.23 4.42
Benchmarks
Payables Turnover, Competitors2
Coca-Cola Co. 3.84
Mondelēz International Inc. 2.65
PepsiCo Inc. 3.76
Payables Turnover, Sector
Food, Beverage & Tobacco 3.41
Payables Turnover, Industry
Consumer Staples 6.84

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Payables turnover = Cost of products sold ÷ Trade payables
= 16,830 ÷ 4,003 = 4.20

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Kraft Heinz Co. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

Kraft Heinz Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current assets 8,097 9,075 7,266 8,753 9,780
Less: Current liabilities 7,875 7,503 10,132 9,501 6,932
Working capital 222 1,572 (2,866) (748) 2,848
 
Net sales 24,977 26,268 26,232 26,487 18,338
Short-term Activity Ratio
Working capital turnover1 112.51 16.71 6.44
Benchmarks
Working Capital Turnover, Competitors2
Coca-Cola Co.
Mondelēz International Inc.
PepsiCo Inc.
Working Capital Turnover, Sector
Food, Beverage & Tobacco
Working Capital Turnover, Industry
Consumer Staples

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Working capital turnover = Net sales ÷ Working capital
= 24,977 ÷ 222 = 112.51

2 Click competitor name to see calculations.


Average Inventory Processing Period

Kraft Heinz Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Inventory turnover 6.19 6.50 5.87 6.30 4.80
Short-term Activity Ratio (no. days)
Average inventory processing period1 59 56 62 58 76
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Coca-Cola Co. 84
Mondelēz International Inc. 60
PepsiCo Inc. 40
Average Inventory Processing Period, Sector
Food, Beverage & Tobacco 56
Average Inventory Processing Period, Industry
Consumer Staples 44

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.19 = 59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Kraft Heinz Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Receivables turnover 12.66 12.34 28.48 34.44 21.05
Short-term Activity Ratio (no. days)
Average receivable collection period1 29 30 13 11 17
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Coca-Cola Co. 39
Mondelēz International Inc. 31
PepsiCo Inc. 43
Average Receivable Collection Period, Sector
Food, Beverage & Tobacco 39
Average Receivable Collection Period, Industry
Consumer Staples 11

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.66 = 29

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Kraft Heinz Co. number of days of receivables outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Operating Cycle

Kraft Heinz Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 59 56 62 58 76
Average receivable collection period 29 30 13 11 17
Short-term Activity Ratio
Operating cycle1 88 86 75 69 93
Benchmarks
Operating Cycle, Competitors2
Coca-Cola Co. 123
Mondelēz International Inc. 91
PepsiCo Inc. 83
Operating Cycle, Sector
Food, Beverage & Tobacco 95
Operating Cycle, Industry
Consumer Staples 55

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 59 + 29 = 88

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Kraft Heinz Co. operating cycle deteriorated from 2017 to 2018 and from 2018 to 2019.

Average Payables Payment Period

Kraft Heinz Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Payables turnover 4.20 4.18 3.72 4.23 4.42
Short-term Activity Ratio (no. days)
Average payables payment period1 87 87 98 86 83
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Coca-Cola Co. 95
Mondelēz International Inc. 138
PepsiCo Inc. 97
Average Payables Payment Period, Sector
Food, Beverage & Tobacco 107
Average Payables Payment Period, Industry
Consumer Staples 53

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.20 = 87

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Kraft Heinz Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 59 56 62 58 76
Average receivable collection period 29 30 13 11 17
Average payables payment period 87 87 98 86 83
Short-term Activity Ratio
Cash conversion cycle1 1 -1 -23 -17 10
Benchmarks
Cash Conversion Cycle, Competitors2
Coca-Cola Co. 28
Mondelēz International Inc. -47
PepsiCo Inc. -14
Cash Conversion Cycle, Sector
Food, Beverage & Tobacco -12
Cash Conversion Cycle, Industry
Consumer Staples 2

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 59 + 2987 = 1

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Kraft Heinz Co. cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019.