Kraft Foods Group Inc. (NASDAQ:KRFT)

The financial data for the three consecutive years ending in December 2012, 2013, and 2014 reveals certain trends in the current assets and adjusted current assets.

Current Assets

The current assets showed a slight increase from 4823 million US dollars in 2012 to 4908 million US dollars in 2013, representing a modest growth. However, in 2014, current assets experienced a decrease to 4791 million US dollars, indicating a reversal of the prior year's growth and returning to a level slightly below that of 2012.

Adjusted Current Assets

The adjusted current assets followed a similar trajectory, rising from 4431 million US dollars in 2012 to 4574 million US dollars in 2013. This increase suggests an improvement in the quality or liquidity of current assets after adjustments. Yet, like current assets, adjusted current assets declined in 2014 to 4428 million US dollars, falling below the 2012 baseline.

In summary, both current assets and adjusted current assets reflected marginal growth in 2013, followed by declines in 2014. This pattern may indicate fluctuations in short-term asset management or temporary operational changes impacting liquidity or asset valuation during the periods analyzed.

The analysis of the annual financial data reveals a subtle decline in the company's asset base over the three-year period examined. Both the total assets and adjusted total assets exhibit a downward trend from 2012 through 2014.

Total Assets

The total assets decreased gradually from US$ 23,329 million at the end of 2012 to US$ 23,148 million in 2013, continuing the decline to US$ 22,947 million by the end of 2014. This represents an overall reduction of approximately 1.6% over the period.

Adjusted Total Assets

Adjusted total assets follow a similar pattern, starting at US$ 23,319 million in 2012, slightly decreasing to US$ 23,236 million in 2013, and further decreasing to US$ 22,953 million in 2014. The minor discrepancy between total assets and adjusted total assets across the years indicates consistency in the asset adjustments applied.

These steady, albeit modest, decreases may suggest a cautious approach to asset management or the effect of asset disposals, depreciation, or other accounting adjustments over the period. The data does not indicate any abrupt or significant fluctuations, which implies a relatively stable asset base with slight contraction.

Total liabilities

The total liabilities decreased from 19,757 million USD in 2012 to 17,961 million USD in 2013, indicating a reduction in the company's obligations by approximately 1,796 million USD. However, in 2014, total liabilities increased to 18,582 million USD, reflecting a partial reversal of the prior year's decrease but still remaining below the 2012 figure.

Adjusted total liabilities

The adjusted total liabilities followed a similar trend as total liabilities, starting at 19,807 million USD in 2012 and declining sharply to 17,702 million USD in 2013. In 2014, adjusted total liabilities rose to 18,606 million USD, indicating an increase compared to the previous year, but not reaching the 2012 level. The consistency between the total liabilities and adjusted total liabilities trends suggests stability in the adjustment methodology.

The financial data reveals fluctuations in both equity and adjusted equity values for the periods under review.

Equity

Equity increased significantly from 3,572 million US dollars in 2012 to 5,187 million US dollars in 2013, reflecting a strong growth of approximately 45.2%. However, in 2014, equity decreased to 4,365 million US dollars, indicating a decline of about 15.8% from the previous year. Despite this decrease, the 2014 equity figure remains higher than the 2012 level.

Adjusted Equity

Adjusted equity followed a somewhat similar trend. It increased from 3,359 million US dollars in 2012 to 5,500 million US dollars in 2013, marking a notable rise of roughly 63.7%. In 2014, adjusted equity decreased to 4,288 million US dollars, showing a reduction of approximately 22%. Even with this decline, the adjusted equity level in 2014 remains above the 2012 figure.

Overall, the data depicts a period of considerable growth in both equity and adjusted equity from 2012 to 2013, followed by a notable contraction in 2014. This pattern may suggest that the company experienced a peak in capital or retained earnings in 2013, but faced challenges or changes that led to a reduction in equity positions the following year. The larger percentage decrease in adjusted equity compared to reported equity in 2014 may indicate specific adjustments or remeasurements affecting the equity base during that period.

Total Reported Debt

The total reported debt remained relatively stable across the three years, with a slight increase from US$9,971 million in 2012 to US$10,032 million in 2014.

Equity

Equity experienced a notable increase from US$3,572 million in 2012 to US$5,187 million in 2013, followed by a decline to US$4,365 million in 2014. This reflects a peak in the middle year with a subsequent reduction.

Total Reported Capital

Total reported capital exhibited growth from US$13,543 million in 2012 to US$15,167 million in 2013, then contracted to US$14,397 million in 2014. This trend mirrors the pattern seen in equity.

Adjusted Total Debt

Adjusted total debt saw a consistent, moderate increase from US$10,353 million in 2012 to US$10,402 million in 2013 and remained static at US$10,401 million in 2014, indicating stability after initial growth.

Adjusted Equity

The adjusted equity grew substantially from US$3,359 million in 2012 to US$5,500 million in 2013, before declining to US$4,288 million in 2014. The middle year again marked the highest value, suggesting a similar trend to reported equity.

Adjusted Total Capital

Adjusted total capital followed a rising pattern from US$13,712 million in 2012 to a peak of US$15,902 million in 2013, subsequently decreasing to US$14,689 million in 2014. The increase and subsequent fall align with movements observed in both equity and total capital figures.

The financial data reveals significant fluctuations in both net earnings and adjusted net earnings over the three-year period ending in December 2014.

Net Earnings

Net earnings showed a considerable increase from 2012 to 2013, rising from $1,642 million to $2,715 million. This represents a strong growth of approximately 65%. However, in 2014, net earnings dramatically declined to $1,043 million, marking a sharp decrease of nearly 62% compared to the previous year.

Adjusted Net Earnings

Adjusted net earnings exhibited a similar trend. There was a notable increase from $2,063 million in 2012 to $3,357 million in 2013, reflecting a growth of about 63%. In contrast, 2014 saw a steep decline to $600 million, which constitutes an approximate 82% drop from 2013 adjusted earnings.

The data indicates that the company experienced a peak in profitability in 2013, followed by a marked reduction in financial performance in 2014. The considerably larger decline in adjusted net earnings compared to net earnings in 2014 suggests that adjustments, possibly for non-recurring items, had a substantial impact during that year. This pattern may point to one-off adverse events or operational challenges affecting the company’s profitability in 2014.