Analysis of Short-term (Operating) Activity Ratios
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 Heinz Co., short-term (operating) activity ratios
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
| 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 | ||||||
| Altria Group Inc. | 3.09 | — | — | — | — | |
| Coca-Cola Co. | 4.33 | — | — | — | — | |
| PepsiCo Inc. | 9.03 | — | — | — | — | |
| Philip Morris International Inc. | 1.14 | — | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.42 | — | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Consumer Staples | 7.42 | — | — | — | — | |
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
| 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 | ||||||
| Altria Group Inc. | 165.20 | — | — | — | — | |
| Coca-Cola Co. | 9.38 | — | — | — | — | |
| PepsiCo Inc. | 8.59 | — | — | — | — | |
| Philip Morris International Inc. | 9.68 | — | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 10.61 | — | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Consumer Staples | 34.71 | — | — | — | — | |
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
| 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 | ||||||
| Altria Group Inc. | 21.80 | — | — | — | — | |
| Coca-Cola Co. | 3.84 | — | — | — | — | |
| PepsiCo Inc. | 3.76 | — | — | — | — | |
| Philip Morris International Inc. | 4.57 | — | — | — | — | |
| Payables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 4.32 | — | — | — | — | |
| Payables Turnover, Industry | ||||||
| Consumer Staples | 7.11 | — | — | — | — | |
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
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
| 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 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Coca-Cola Co. | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Philip Morris International Inc. | 17.73 | — | — | — | — | |
| 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
| 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 | ||||||
| Altria Group Inc. | 118 | — | — | — | — | |
| Coca-Cola Co. | 84 | — | — | — | — | |
| PepsiCo Inc. | 40 | — | — | — | — | |
| Philip Morris International Inc. | 321 | — | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Food, Beverage & Tobacco | 107 | — | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Staples | 49 | — | — | — | — | |
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
| 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 | ||||||
| Altria Group Inc. | 2 | — | — | — | — | |
| Coca-Cola Co. | 39 | — | — | — | — | |
| PepsiCo Inc. | 43 | — | — | — | — | |
| Philip Morris International Inc. | 38 | — | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Food, Beverage & Tobacco | 34 | — | — | — | — | |
| 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
| 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 | ||||||
| Altria Group Inc. | 120 | — | — | — | — | |
| Coca-Cola Co. | 123 | — | — | — | — | |
| PepsiCo Inc. | 83 | — | — | — | — | |
| Philip Morris International Inc. | 359 | — | — | — | — | |
| Operating Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 141 | — | — | — | — | |
| Operating Cycle, Industry | ||||||
| Consumer Staples | 60 | — | — | — | — | |
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
| 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 | ||||||
| Altria Group Inc. | 17 | — | — | — | — | |
| Coca-Cola Co. | 95 | — | — | — | — | |
| PepsiCo Inc. | 97 | — | — | — | — | |
| Philip Morris International Inc. | 80 | — | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Food, Beverage & Tobacco | 85 | — | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Staples | 51 | — | — | — | — | |
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
| 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 | ||||||
| Altria Group Inc. | 103 | — | — | — | — | |
| Coca-Cola Co. | 28 | — | — | — | — | |
| PepsiCo Inc. | -14 | — | — | — | — | |
| Philip Morris International Inc. | 279 | — | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 56 | — | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Staples | 9 | — | — | — | — | |
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 + 29 – 87 = 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. |