Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Kraft Foods Group Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Kraft Foods Group Inc. inventory turnover ratio improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Kraft Foods Group Inc. receivables turnover ratio improved from Q3 2014 to Q4 2014 but then deteriorated significantly from Q4 2014 to Q1 2015. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Kraft Foods Group Inc. payables turnover ratio increased from Q3 2014 to Q4 2014 but then slightly decreased from Q4 2014 to Q1 2015. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Kraft Foods Group Inc. working capital turnover ratio improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015 not reaching Q3 2014 level. |
| 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. | Kraft Foods Group Inc. number of days of inventory outstanding improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |
| 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. | Kraft Foods Group Inc. operating cycle improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |
| 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. | Kraft Foods Group Inc. number of days of payables outstanding decreased from Q3 2014 to Q4 2014 but then slightly increased from Q4 2014 to Q1 2015. |
| 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 Foods Group Inc. cash conversion cycle improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |
Inventory Turnover
Kraft Foods Group Inc., inventory turnover calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Cost of sales | 3,019) | 4,224) | 3,108) | 3,226) | 2,802) | 2,664) | 2,908) | 2,780) | 3,043) | 3,326) | 3,019) | 3,150) | 3,004) | |||||
| Inventories | 1,886) | 1,775) | 2,044) | 2,024) | 1,909) | 1,616) | 1,881) | 1,898) | 1,948) | 1,928) | 2,090) | 2,048) | 2,174) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Inventory turnover1 | 7.20 | 7.53 | 5.77 | 5.73 | 5.84 | 7.05 | 6.41 | 6.41 | 6.44 | 6.48 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Inventory turnover
= (Cost of salesQ1 2015
+ Cost of salesQ4 2014
+ Cost of salesQ3 2014
+ Cost of salesQ2 2014)
÷ Inventories
= (3,019 + 4,224 + 3,108 + 3,226)
÷ 1,886 = 7.20
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 Foods Group Inc. inventory turnover ratio improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |
Receivables Turnover
Kraft Foods Group Inc., receivables turnover calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net revenues | 4,352) | 4,696) | 4,400) | 4,747) | 4,362) | 4,595) | 4,394) | 4,716) | 4,513) | 4,494) | 4,606) | 4,786) | 4,453) | |||||
| Receivables, net of allowances | 1,219) | 1,080) | 1,086) | 1,186) | 1,204) | 1,048) | 1,106) | 1,223) | 1,278) | 1,089) | 1,157) | 1,102) | 1,175) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Receivables turnover1 | 14.93 | 16.86 | 16.67 | 15.26 | 15.01 | 17.38 | 16.38 | 14.99 | 14.40 | 16.84 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Receivables turnover
= (Net revenuesQ1 2015
+ Net revenuesQ4 2014
+ Net revenuesQ3 2014
+ Net revenuesQ2 2014)
÷ Receivables, net of allowances
= (4,352 + 4,696 + 4,400 + 4,747)
÷ 1,219 = 14.93
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. | Kraft Foods Group Inc. receivables turnover ratio improved from Q3 2014 to Q4 2014 but then deteriorated significantly from Q4 2014 to Q1 2015. |
Payables Turnover
Kraft Foods Group Inc., payables turnover calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Cost of sales | 3,019) | 4,224) | 3,108) | 3,226) | 2,802) | 2,664) | 2,908) | 2,780) | 3,043) | 3,326) | 3,019) | 3,150) | 3,004) | |||||
| Accounts payable | 1,629) | 1,537) | 1,561) | 1,606) | 1,598) | 1,548) | 1,460) | 1,444) | 1,463) | 1,556) | 1,510) | 1,336) | 1,350) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Payables turnover1 | 8.33 | 8.69 | 7.56 | 7.22 | 6.98 | 7.36 | 8.26 | 8.43 | 8.57 | 8.03 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Payables turnover
= (Cost of salesQ1 2015
+ Cost of salesQ4 2014
+ Cost of salesQ3 2014
+ Cost of salesQ2 2014)
÷ Accounts payable
= (3,019 + 4,224 + 3,108 + 3,226)
÷ 1,629 = 8.33
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 Foods Group Inc. payables turnover ratio increased from Q3 2014 to Q4 2014 but then slightly decreased from Q4 2014 to Q1 2015. |
Working Capital Turnover
Kraft Foods Group Inc., working capital turnover calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Current assets | 5,004) | 4,791) | 4,622) | 5,111) | 5,157) | 4,908) | 4,835) | 4,819) | 4,954) | 4,823) | 3,905) | 3,634) | 3,816) | |||||
| Less: Current liabilities | 4,884) | 4,773) | 4,291) | 4,796) | 3,534) | 3,410) | 2,899) | 3,282) | 3,367) | 3,606) | 2,569) | 2,597) | 2,480) | |||||
| Working capital | 120) | 18) | 331) | 315) | 1,623) | 1,498) | 1,936) | 1,537) | 1,587) | 1,217) | 1,336) | 1,037) | 1,336) | |||||
| Net revenues | 4,352) | 4,696) | 4,400) | 4,747) | 4,362) | 4,595) | 4,394) | 4,716) | 4,513) | 4,494) | 4,606) | 4,786) | 4,453) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Working capital turnover1 | 151.63 | 1,011.39 | 54.69 | 57.45 | 11.13 | 12.16 | 9.36 | 11.93 | 11.59 | 15.07 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Working capital turnover
= (Net revenuesQ1 2015
+ Net revenuesQ4 2014
+ Net revenuesQ3 2014
+ Net revenuesQ2 2014)
÷ Working capital
= (4,352 + 4,696 + 4,400 + 4,747)
÷ 120 = 151.63
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. | Kraft Foods Group Inc. working capital turnover ratio improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015 not reaching Q3 2014 level. |
Average Inventory Processing Period
Kraft Foods Group Inc., average inventory processing period calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Inventory turnover | 7.20 | 7.53 | 5.77 | 5.73 | 5.84 | 7.05 | 6.41 | 6.41 | 6.44 | 6.48 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||
| Average inventory processing period1 | 51 | 48 | 63 | 64 | 62 | 52 | 57 | 57 | 57 | 56 | — | — | — | |||||
| Benchmarks (no. days) | ||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 7.20 = 51
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. | Kraft Foods Group Inc. number of days of inventory outstanding improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |
Average Receivable Collection Period
Kraft Foods Group Inc., average receivable collection period calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Receivables turnover | 14.93 | 16.86 | 16.67 | 15.26 | 15.01 | 17.38 | 16.38 | 14.99 | 14.40 | 16.84 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||
| Average receivable collection period1 | 24 | 22 | 22 | 24 | 24 | 21 | 22 | 24 | 25 | 22 | — | — | — | |||||
| Benchmarks (no. days) | ||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.93 = 24
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 Foods Group Inc., operating cycle calculation (quarterly data)
No. days
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Average inventory processing period | 51 | 48 | 63 | 64 | 62 | 52 | 57 | 57 | 57 | 56 | — | — | — | |||||
| Average receivable collection period | 24 | 22 | 22 | 24 | 24 | 21 | 22 | 24 | 25 | 22 | — | — | — | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Operating cycle1 | 75 | 70 | 85 | 88 | 86 | 73 | 79 | 81 | 82 | 78 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 51 + 24 = 75
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 Foods Group Inc. operating cycle improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |
Average Payables Payment Period
Kraft Foods Group Inc., average payables payment period calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Payables turnover | 8.33 | 8.69 | 7.56 | 7.22 | 6.98 | 7.36 | 8.26 | 8.43 | 8.57 | 8.03 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||
| Average payables payment period1 | 44 | 42 | 48 | 51 | 52 | 50 | 44 | 43 | 43 | 45 | — | — | — | |||||
| Benchmarks (no. days) | ||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.33 = 44
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. | Kraft Foods Group Inc. number of days of payables outstanding decreased from Q3 2014 to Q4 2014 but then slightly increased from Q4 2014 to Q1 2015. |
Cash Conversion Cycle
Kraft Foods Group Inc., cash conversion cycle calculation (quarterly data)
No. days
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | Dec 29, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Average inventory processing period | 51 | 48 | 63 | 64 | 62 | 52 | 57 | 57 | 57 | 56 | — | — | — | |||||
| Average receivable collection period | 24 | 22 | 22 | 24 | 24 | 21 | 22 | 24 | 25 | 22 | — | — | — | |||||
| Average payables payment period | 44 | 42 | 48 | 51 | 52 | 50 | 44 | 43 | 43 | 45 | — | — | — | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Cash conversion cycle1 | 31 | 28 | 37 | 37 | 34 | 23 | 35 | 38 | 39 | 33 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-30), 10-12B/A (reporting date: 2012-06-30), 10-12B/A (reporting date: 2012-03-31).
1 Q1 2015 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 51 + 24 – 44 = 31
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 Foods Group Inc. cash conversion cycle improved from Q3 2014 to Q4 2014 but then slightly deteriorated from Q4 2014 to Q1 2015. |