KHCCAUTIOUS

KHC Quick Ratio Analysis

0.54x

Updated 153h ago·SEC filings & market data

Key Takeaway

The quick ratio measures liquid assets—cash, marketable securities, and receivables—against current liabilities, showing how well a company can cover short-term debts without selling inventory.

Sector Performance

34th percentile

KHC

0.54x

Sector Median

0.72x

Sector Avg

2.70x

Prior Period

0.63x(Aug 2026)

↓ Declining

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Deep Analysis

The quick ratio measures liquid assets—cash, marketable securities, and receivables—against current liabilities, showing how well a company can cover short-term debts without selling inventory.

At 0.63x, KHC holds $0.63 of liquid assets for every $1.00 of current liabilities, indicating a thin liquidity buffer. This sits below the sector median of 0.72x and ranks in the 42nd percentile among peers, placing it on the lower half of the group. Trend data is N/A, with no year-over-year or quarter-over-quarter change reported, so there is no direction to assess. The combination of a below-median level and absent trend data offers limited signal, but the current weakness alone points to higher short-term default risk relative to sector norms. This metric supports the CAUTIOUS verdict, as the quick ratio suggests KHC may struggle to meet near-term obligations comfortably.

Frequently Asked Questions

What does the Quick Ratio tell investors about KHC?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

Who are KHC's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: OMC (0.67x), KO (0.66x), SIEGY (0.64x), TAP (0.60x), LW (0.60x).

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Learn More About Quick Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.