Stock Analysis on Net
Stock Analysis on Net

Kraft Foods Group Inc. (NASDAQ:KRFT)

This company has been moved to the archive! The financial data has not been updated since April 28, 2015.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Kraft Foods Group Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Adjustment to Total Assets
Total assets (as reported) 22,947 23,148 23,329
Less: Goodwill 11,404 11,505 11,346
Total assets (adjusted) 11,543 11,643 11,983
Adjustment to Equity
Equity (as reported) 4,365 5,187 3,572
Less: Goodwill 11,404 11,505 11,346
Equity (adjusted) (7,039) (6,318) (7,774)

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

Kraft Foods Group Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Kraft Foods Group Inc., adjusted financial ratios

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Total Asset Turnover
Reported total asset turnover 0.79 0.79 0.79
Adjusted total asset turnover 1.58 1.56 1.53
Financial Leverage
Reported financial leverage 5.26 4.46 6.53
Adjusted financial leverage — — —
Return on Equity (ROE)
Reported ROE 23.89% 52.34% 45.97%
Adjusted ROE — — —
Return on Assets (ROA)
Reported ROA 4.55% 11.73% 7.04%
Adjusted ROA 9.04% 23.32% 13.70%

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kraft Foods Group Inc. adjusted total asset turnover ratio improved from 2012 to 2013 and from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Kraft Foods Group Inc. adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

Kraft Foods Group Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
As Reported
Selected Financial Data (US$ in millions)
Net revenues 18,205 18,218 18,339
Total assets 22,947 23,148 23,329
Activity Ratio
Total asset turnover1 0.79 0.79 0.79
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenues 18,205 18,218 18,339
Adjusted total assets 11,543 11,643 11,983
Activity Ratio
Adjusted total asset turnover2 1.58 1.56 1.53

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

2014 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 18,205 ÷ 22,947 = 0.79

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 18,205 ÷ 11,543 = 1.58

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kraft Foods Group Inc. adjusted total asset turnover ratio improved from 2012 to 2013 and from 2013 to 2014.

Adjusted Financial Leverage

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
As Reported
Selected Financial Data (US$ in millions)
Total assets 22,947 23,148 23,329
Equity 4,365 5,187 3,572
Solvency Ratio
Financial leverage1 5.26 4.46 6.53
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 11,543 11,643 11,983
Adjusted equity (7,039) (6,318) (7,774)
Solvency Ratio
Adjusted financial leverage2 — — —

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

2014 Calculations

1 Financial leverage = Total assets ÷ Equity
= 22,947 ÷ 4,365 = 5.26

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity
= 11,543 ÷ -7,039 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
As Reported
Selected Financial Data (US$ in millions)
Net earnings 1,043 2,715 1,642
Equity 4,365 5,187 3,572
Profitability Ratio
ROE1 23.89% 52.34% 45.97%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 1,043 2,715 1,642
Adjusted equity (7,039) (6,318) (7,774)
Profitability Ratio
Adjusted ROE2 — — —

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

2014 Calculations

1 ROE = 100 × Net earnings ÷ Equity
= 100 × 1,043 ÷ 4,365 = 23.89%

2 Adjusted ROE = 100 × Net earnings ÷ Adjusted equity
= 100 × 1,043 ÷ -7,039 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
As Reported
Selected Financial Data (US$ in millions)
Net earnings 1,043 2,715 1,642
Total assets 22,947 23,148 23,329
Profitability Ratio
ROA1 4.55% 11.73% 7.04%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 1,043 2,715 1,642
Adjusted total assets 11,543 11,643 11,983
Profitability Ratio
Adjusted ROA2 9.04% 23.32% 13.70%

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

2014 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 1,043 ÷ 22,947 = 4.55%

2 Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 1,043 ÷ 11,543 = 9.04%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Kraft Foods Group Inc. adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.