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KHCThe Kraft Heinz Company
$23.79$28.2B
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  4. Financial Ratios

The Kraft Heinz Company (KHC) Financial Ratios

Latest Ratios: P/E Ratio -4.8x · EV/EBITDA N/A · ROE -12.8%. (2011–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

KHC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$28.2B$28.6B$37.3B$45.7B$50.3B$43.6B$43.0B$39.3B$52.5B$95.6B$107.1B
Enterprise Value$46.8B$47.2B$55.8B$64.3B$69.3B$61.9B$67.8B$66.3B$82.5B$125.4B$135.3B
P/E Ratio →-4.83—13.5816.0121.3142.99120.6220.34—8.6931.07
P/S Ratio1.131.151.441.711.901.671.641.572.003.664.07
P/B Ratio0.680.690.760.921.030.880.850.761.011.451.86
P/FCF7.717.8211.8015.4132.379.779.9114.1330.01—26.82
P/OCF6.326.428.9111.4920.368.128.7111.0720.38181.3320.44

P/E links to full P/E history page with 30-year chart

KHC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.892.162.412.622.382.592.653.144.815.14
EV / EBITDA——21.2111.6215.1814.1721.9116.31—17.7019.49
EV / EBIT——31.5714.1517.8316.5027.9916.48—18.7722.27
EV / FCF—12.9117.6621.7044.6313.8915.6623.8147.20—33.89

KHC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin33.3%33.3%34.7%33.5%30.7%33.3%35.0%32.6%34.0%34.6%34.8%
Operating Margin-18.7%-18.7%6.5%17.2%13.7%13.3%8.1%12.3%-38.8%23.2%21.3%
Net Profit Margin-23.4%-23.4%10.6%10.7%8.9%3.9%1.4%7.7%-38.8%42.0%13.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-12.8%-12.8%5.5%5.8%4.8%2.0%0.7%3.7%-17.3%17.7%5.8%
ROA-6.9%-6.9%3.1%3.2%2.6%1.0%0.4%1.9%-9.1%9.1%3.0%
ROIC-5.5%-5.5%1.9%5.0%4.0%3.6%2.1%2.9%-8.6%5.0%4.9%
ROCE-6.1%-6.1%2.1%5.6%4.4%3.9%2.3%3.2%-9.9%5.5%4.9%

KHC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.510.510.400.400.410.440.560.570.600.480.56
Debt / EBITDA——7.553.624.394.999.147.20—4.444.67
Net Debt / Equity—0.450.380.370.390.370.500.520.580.450.49
Net Debt / EBITDA——7.043.374.174.208.046.64—4.214.06
Debt / FCF—5.085.876.2912.254.125.749.6917.18—7.07
Interest Coverage-4.75-4.751.944.984.221.831.742.96-7.825.425.36

KHC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.151.151.060.990.870.991.341.031.210.710.92
Quick Ratio0.790.790.590.540.470.691.000.680.850.440.64
Cash Ratio0.420.420.180.170.120.380.420.290.150.160.44
Asset Turnover—0.300.290.290.290.280.260.250.250.220.22
Inventory Turnover5.255.255.004.905.036.366.136.196.506.176.39
Days Sales Outstanding—32.9830.3228.9429.2227.4328.7628.8331.7025.3616.07

KHC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield6.7%6.6%5.2%4.3%3.9%4.5%4.6%5.0%6.1%3.0%3.3%
Payout Ratio——70.4%68.8%82.9%193.6%550.0%100.9%—26.4%99.7%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——7.4%6.2%4.7%2.3%0.8%4.9%—11.5%3.2%
FCF Yield13.0%12.8%8.5%6.5%3.1%10.2%10.1%7.1%3.3%—3.7%
Buyback Yield1.5%1.5%2.7%1.0%0.6%0.6%0.0%0.0%0.0%0.0%7.8%
Total Shareholder Yield8.3%8.1%7.8%5.3%4.5%5.1%4.6%5.0%6.1%3.0%11.1%
Shares Outstanding—$1.2B$1.2B$1.2B$1.2B$1.2B$1.2B$1.2B$1.2B$1.2B$1.2B

Key Metrics

Growth RegimeDecelerating
ProfitabilityStrained
Balance SheetMixed
Cash FlowMixed
Top Statement Risk

Impairment-driven earnings volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Impairments Mask Underlying Margin Stability

Excluding impairment quarters, operating margin averaged 18.3% in 2025Q1-2026Q1, but 2026Q2's -102.7% reveals how non-cash charges distort underlying profitability, as reported in quarterly filings.

The reported operating margin of -102.7% in 2026Q2 is an outlier driven by a massive non-cash impairment, not a reflection of operational deterioration. In the preceding four quarters, operating margins ranged from 16.4% to 19.9%, indicating that the core business maintains mid-to-high teen margins. However, gross margin has slipped from 35.4% in 2024Q2 to 32.4% in 2026Q2, a 300 basis point decline, suggesting that input cost inflation is outpacing pricing power. Investors should monitor whether this compression is temporary or signals a structural loss of pricing power, especially as revenue declines in seven of the last ten quarters.

Impairments Decimate Return on Capital

ROIC swung from -9.2% in 2025Q2 to 1.3% in 2026Q1, but the 2026Q2 -8.6% reflects another impairment, obscuring the underlying return on invested capital, per recent financial statements.

The return on invested capital has been volatile, with positive quarters (1.3% in 2026Q1) sandwiched between impairment-driven negative quarters. Excluding impairment quarters, ROIC appears to be in the low single digits, which is below the cost of capital for a packaged foods company. This suggests that the company is not compounding returns on its invested capital, and the massive goodwill impairments indicate that past acquisitions have not generated the expected returns. The negative retained earnings balance of -$9.3B in 2026Q2 further underscores the erosion of shareholder value, and investors should question whether the remaining asset base can generate adequate returns.

Working Capital Efficiency Holds Steady

Cash conversion cycle improved from 19 days in 2025Q2 to 9 days in 2026Q2, driven by stable DSO and DIO, while DPO remains near 95 days, as reported in quarterly data.

The cash conversion cycle has remained consistently in the single digits to mid-teens over the past ten quarters, indicating efficient working capital management. DSO has been stable around 30-34 days, DIO around 71-81 days, and DPO around 92-100 days, allowing the company to fund its operations with supplier credit. However, the slight improvement in CCC is offset by a decline in asset turnover from 0.08 to 0.07, reflecting the shrinking asset base due to impairments and divestitures. This suggests that while working capital is managed well, the overall efficiency of the asset base is not improving.

Leverage Understated by Impairment-Reduced Equity

Reported D/E of 0.53 is misleading because equity has been reduced by $13.5B in cumulative impairments, masking true leverage, as evidenced by $19B debt and rising debt-to-assets ratio, per balance sheet data.

The reported debt-to-equity ratio of 0.53 appears artificially low because equity has been depleted by massive impairments, turning retained earnings negative. A more accurate picture is the debt-to-assets ratio, which has risen from 22.7% in 2024Q1 to 26.0% in 2026Q2. Interest coverage, excluding impairment quarters, has been around 4.4-5.5x, which is adequate but could become strained if interest rates rise or cash flow deteriorates. The company's Z-Score is in the distress zone, indicating elevated financial risk, and the planned split into two entities may be a strategic response to this leverage burden.

Liquidity Buffer Thins as Current Ratio Nears 1.0

Current ratio fell from 1.31 in 2025Q1 to 1.06 in 2026Q2, while quick ratio dropped to 0.68, indicating a thinner buffer against short-term obligations, as reported in quarterly filings.

The current ratio has declined steadily from 1.31 in 2025Q1 to 1.06 in 2026Q2, approaching the critical 1.0 threshold. The quick ratio of 0.68 suggests that inventory is a significant component of current assets, and in a stress scenario, the company may struggle to meet short-term obligations without relying on inventory liquidation. Cash levels have remained around $2.4B, but with dividends consuming roughly $475M per quarter, the liquidity cushion is tight. This fragility may indicate that the planned split is a necessity to unlock value and reduce balance sheet pressure.

Misapplied P/E Obscures True Earnings Power

The trailing P/E of -5.17 is meaningless due to impairment-driven losses, while forward P/E of 12.43 suggests the market expects normalized earnings, but investors should use EV/EBITDA or P/FCF instead, per valuation data.

The most commonly misapplied ratio for KHC is the P/E ratio, which is distorted by non-cash impairments that create negative earnings. The trailing P/E of -5.17 is not informative, and even the forward P/E of 12.43 may be misleading if impairments recur. A better metric is EV/EBITDA, which, despite being unavailable for TTM, is projected at 18.66 forward, indicating that the market is pricing in a recovery. Alternatively, P/FCF of 8.26 provides a cleaner picture of valuation, as free cash flow has remained positive and stable. Investors should focus on cash-based multiples and adjust for one-time charges to assess the company's true earning power.

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KHC — Frequently Asked Questions

Quick answers to the most common questions about buying KHC stock.

What is The Kraft Heinz Company's P/E ratio?

The Kraft Heinz Company's current P/E ratio is -4.8x. The historical average is 34.3x.

What is The Kraft Heinz Company's ROE?

The Kraft Heinz Company's return on equity (ROE) is -12.8%. The historical average is 8.6%.

Is KHC stock overvalued?

Based on historical data, The Kraft Heinz Company is trading at a P/E of -4.8x. Compare with industry peers and growth rates for a complete picture.

What is The Kraft Heinz Company's dividend yield?

The Kraft Heinz Company's current dividend yield is 6.72%.

What are The Kraft Heinz Company's profit margins?

The Kraft Heinz Company has 33.3% gross margin and -18.7% operating margin.