The Kraft Heinz Company — Earnings Quality Grade F
KHC · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 33 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -3.5%, CFFO 6.6%. Cash follows revenue
Expense Quality
Inventory -6.2% vs COGS -1.5%. Normal
CapEx growth -31.2% vs revenue -3.5%. Normal
SG&A/Gross Profit = 44.2%. Normal
Gross margin 33.3%, change -1.4pp. Stable
Cash Flow Quality
CFFO/NI = -0.76. Below 1.0
FCF $3.7B, FCF/NI = -0.63
Accruals ratio = -12.6%. Low accruals
Cash $3.7B covers only 17% of debt $21.2B
Balance Sheet Health
Goodwill+Intangibles $59.7B = 143% of equity. Over 50%
Debt/EBITDA = -6.0x. Healthy
Other assets -1.6% vs revenue -3.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -13% YoY. Normal
Manipulation Score
M-Score = -3.08 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08