Kraft Heinz Co. (KHC)


Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Low level of difficulty


Short-term Activity Ratios (Summary)

Kraft Heinz Co., short-term (operating) activity 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
Turnover Ratios
Inventory turnover 5.41 5.61 5.53 6.50 5.22 5.33 5.25 5.87 5.16 5.39 5.32 6.30 5.54 6.13 5.23 4.80
Receivables turnover 12.93 12.51 12.90 12.34 12.92 13.43 25.07 28.48 27.94 28.66 29.66 34.44 31.29 23.88 23.89 21.05
Payables turnover 4.11 4.15 4.12 4.18 3.98 3.90 3.89 3.72 4.17 4.25 4.26 4.23 4.98 5.97 5.46 4.42
Working capital turnover 1,948.62 18.70 30.04 16.71 2,917.11 63.87 7.28 6.44
Average No. Days
Average inventory processing period 68 65 66 56 70 68 70 62 71 68 69 58 66 60 70 76
Add: Average receivable collection period 28 29 28 30 28 27 15 13 13 13 12 11 12 15 15 17
Operating cycle 96 94 94 86 98 95 85 75 84 81 81 69 78 75 85 93
Less: Average payables payment period 89 88 89 87 92 94 94 98 88 86 86 86 73 61 67 83
Cash conversion cycle 7 6 5 -1 6 1 -9 -23 -4 -5 -5 -17 5 14 18 10

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory.
Receivables turnover An activity ratio equal to revenue divided by receivables.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Kraft Heinz Co.’s payables turnover ratio increased from Q1 2019 to Q2 2019 but then declined significantly from Q2 2019 to Q3 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital.

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.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
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.

Inventory Turnover

Kraft Heinz Co., inventory turnover 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)
Cost of products sold 4,129  4,324  3,948  4,675  4,289  4,343  4,040  4,470  4,000  3,996  4,063  4,398  4,049  4,262  4,192  4,720  4,492  1,734  1,631 
Inventories 3,158  3,074  3,118  2,667  3,287  3,161  3,144  2,815  3,188  3,065  3,151  2,684  3,108  2,881  2,892  2,618  2,981  1,162  1,232 
Short-term Activity Ratio
Inventory turnover1 5.41 5.61 5.53 6.50 5.22 5.33 5.25 5.87 5.16 5.39 5.32 6.30 5.54 6.13 5.23 4.80
Benchmarks
Inventory Turnover, Competitors2
General Mills Inc. 7.04 6.56 6.29 6.28 7.11 6.72 6.28 6.78 6.93 6.74 6.83 7.59 8.12 7.76 6.41 7.58 7.38 6.12 6.37
Mondelēz International Inc. 5.69 5.73 5.96 6.01 5.51 5.88 6.05 6.19 5.65 5.77 6.06 6.40 5.82 6.05 6.25 6.95 6.36 6.77 6.15

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
Inventory turnover = (Cost of products soldQ3 2019 + Cost of products soldQ2 2019 + Cost of products soldQ1 2019 + Cost of products soldQ4 2018) ÷ Inventories
= (4,129 + 4,324 + 3,948 + 4,675) ÷ 3,158 = 5.41

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.

Receivables Turnover

Kraft Heinz Co., receivables turnover 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 sales 6,076  6,406  5,959  6,891  6,383  6,690  6,304  6,877  6,314  6,677  6,364  6,857  6,267  6,793  6,570  7,124  6,120  2,616  2,478 
Trade receivables, net of allowances 1,959  2,049  2,010  2,129  2,032  1,950  1,044  921  938  913  886  769  855  1,114  939  871  1,613  795  818 
Short-term Activity Ratio
Receivables turnover1 12.93 12.51 12.90 12.34 12.92 13.43 25.07 28.48 27.94 28.66 29.66 34.44 31.29 23.88 23.89 21.05
Benchmarks
Receivables Turnover, Competitors2
General Mills Inc. 9.74 9.48 9.40 9.35 10.46 10.31 10.01 10.92 11.03 11.54 11.25 12.17 12.17 11.83 11.47 12.71 11.11 10.34 10.97
Mondelēz International Inc. 10.32 11.78 9.25 11.47 9.56 10.92 8.43 9.62 8.62 10.67 8.53 9.93 8.78 9.65 9.14 11.25 9.28 9.89 8.22

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
Receivables turnover = (Net salesQ3 2019 + Net salesQ2 2019 + Net salesQ1 2019 + Net salesQ4 2018) ÷ Trade receivables, net of allowances
= (6,076 + 6,406 + 5,959 + 6,891) ÷ 1,959 = 12.93

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.

Payables Turnover

Kraft Heinz Co., payables turnover 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)
Cost of products sold 4,129  4,324  3,948  4,675  4,289  4,343  4,040  4,470  4,000  3,996  4,063  4,398  4,049  4,262  4,192  4,720  4,492  1,734  1,631 
Trade payables 4,156  4,153  4,184  4,153  4,312  4,326  4,241  4,449  3,947  3,888  3,936  3,996  3,456  2,960  2,773  2,844  2,719  1,509  1,499 
Short-term Activity Ratio
Payables turnover1 4.11 4.15 4.12 4.18 3.98 3.90 3.89 3.72 4.17 4.25 4.26 4.23 4.98 5.97 5.46 4.42
Benchmarks
Payables Turnover, Competitors2
General Mills Inc. 3.96 3.81 3.89 3.76 4.12 4.13 4.61 4.74 5.45 5.30 5.44 5.24 6.35 6.63 6.54 6.94 7.90 7.00 7.39
Mondelēz International Inc. 2.93 2.94 2.81 2.69 2.91 3.00 2.77 2.77 3.06 3.12 3.22 2.97 3.31 3.60 3.60 3.71 3.95 4.51 4.05

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
Payables turnover = (Cost of products soldQ3 2019 + Cost of products soldQ2 2019 + Cost of products soldQ1 2019 + Cost of products soldQ4 2018) ÷ Trade payables
= (4,129 + 4,324 + 3,948 + 4,675) ÷ 4,156 = 4.11

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.’s payables turnover ratio increased from Q1 2019 to Q2 2019 but then declined significantly from Q2 2019 to Q3 2019.

Working Capital Turnover

Kraft Heinz Co., working capital turnover 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)
Current assets 9,125  9,168  8,835  9,075  7,590  9,501  7,437  7,266  7,228  7,108  8,875  8,753  8,943  9,347  9,812  9,780  10,411  4,589  4,477 
Less: Current liabilities 9,112  7,797  7,972  7,503  7,581  9,091  10,329  10,132  9,387  7,356  9,383  9,501  9,414  9,593  6,730  6,932  5,746  2,653  2,532 
Working capital 13  1,371  863  1,572  410  (2,892) (2,866) (2,159) (248) (508) (748) (471) (246) 3,082  2,848  4,665  1,936  1,945 
 
Net sales 6,076  6,406  5,959  6,891  6,383  6,690  6,304  6,877  6,314  6,677  6,364  6,857  6,267  6,793  6,570  7,124  6,120  2,616  2,478 
Short-term Activity Ratio
Working capital turnover1 1,948.62 18.70 30.04 16.71 2,917.11 63.87 7.28 6.44
Benchmarks
Working Capital Turnover, Competitors2
General Mills Inc.
Mondelēz International Inc.

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
Working capital turnover = (Net salesQ3 2019 + Net salesQ2 2019 + Net salesQ1 2019 + Net salesQ4 2018) ÷ Working capital
= (6,076 + 6,406 + 5,959 + 6,891) ÷ 13 = 1,948.62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital.

Average Inventory Processing Period

Kraft Heinz Co., average inventory processing period 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
Inventory turnover 5.41 5.61 5.53 6.50 5.22 5.33 5.25 5.87 5.16 5.39 5.32 6.30 5.54 6.13 5.23 4.80
Short-term Activity Ratio (no. days)
Average inventory processing period1 68 65 66 56 70 68 70 62 71 68 69 58 66 60 70 76
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
General Mills Inc. 52 56 58 58 51 54 58 54 53 54 53 48 45 47 57 48 49 60 57
Mondelēz International Inc. 64 64 61 61 66 62 60 59 65 63 60 57 63 60 58 53 57 54 59

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.41 = 68

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 (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
Receivables turnover 12.93 12.51 12.90 12.34 12.92 13.43 25.07 28.48 27.94 28.66 29.66 34.44 31.29 23.88 23.89 21.05
Short-term Activity Ratio (no. days)
Average receivable collection period1 28 29 28 30 28 27 15 13 13 13 12 11 12 15 15 17
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
General Mills Inc. 37 38 39 39 35 35 36 33 33 32 32 30 30 31 32 29 33 35 33
Mondelēz International Inc. 35 31 39 32 38 33 43 38 42 34 43 37 42 38 40 32 39 37 44

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.93 = 28

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.

Operating Cycle

Kraft Heinz Co., operating cycle calculation (quarterly data)

No. days

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
Average inventory processing period 68 65 66 56 70 68 70 62 71 68 69 58 66 60 70 76
Average receivable collection period 28 29 28 30 28 27 15 13 13 13 12 11 12 15 15 17
Short-term Activity Ratio
Operating cycle1 96 94 94 86 98 95 85 75 84 81 81 69 78 75 85 93
Benchmarks
Operating Cycle, Competitors2
General Mills Inc. 89 94 97 97 86 89 94 87 86 86 85 78 75 78 89 77 82 95 90
Mondelēz International Inc. 99 95 100 93 104 95 103 97 107 97 103 94 105 98 98 85 96 91 103

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 68 + 28 = 96

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.

Average Payables Payment Period

Kraft Heinz Co., average payables payment period 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
Payables turnover 4.11 4.15 4.12 4.18 3.98 3.90 3.89 3.72 4.17 4.25 4.26 4.23 4.98 5.97 5.46 4.42
Short-term Activity Ratio (no. days)
Average payables payment period1 89 88 89 87 92 94 94 98 88 86 86 86 73 61 67 83
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
General Mills Inc. 92 96 94 97 89 88 79 77 67 69 67 70 57 55 56 53 46 52 49
Mondelēz International Inc. 125 124 130 136 125 121 132 132 119 117 113 123 110 101 101 98 92 81 90

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.11 = 89

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 (quarterly data)

No. days

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
Average inventory processing period 68 65 66 56 70 68 70 62 71 68 69 58 66 60 70 76
Average receivable collection period 28 29 28 30 28 27 15 13 13 13 12 11 12 15 15 17
Average payables payment period 89 88 89 87 92 94 94 98 88 86 86 86 73 61 67 83
Short-term Activity Ratio
Cash conversion cycle1 7 6 5 -1 6 1 -9 -23 -4 -5 -5 -17 5 14 18 10
Benchmarks
Cash Conversion Cycle, Competitors2
General Mills Inc. -3 -2 3 0 -3 1 15 10 19 17 18 8 18 23 33 24 36 43 41
Mondelēz International Inc. -26 -29 -30 -43 -21 -26 -29 -35 -12 -20 -10 -29 -5 -3 -3 -13 4 10 13

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 68 + 2889 = 7

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.