Debt to Equity
since 2012
Calculation
Kraft Foods Group Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Equity1 | |
|---|---|---|---|---|---|
| Dec 27, 2014 | 2.30 | = | 10,032) | ÷ | 4,365) |
| Dec 28, 2013 | 1.92 | = | 9,980) | ÷ | 5,187) |
| Dec 29, 2012 | 2.79 | = | 9,971) | ÷ | 3,572) |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 US$ in millions
An analysis of the leverage profile from 2012 to 2014 indicates a period of fluctuating solvency metrics characterized by stable debt obligations and volatile equity levels.
- Long-term Debt Stability
- Long-term debt, including the current portion, remained remarkably consistent over the three-year period. Total debt increased marginally from US$ 9,971 million in 2012 to US$ 10,032 million in 2014, representing a minimal overall increase that suggests a static borrowing strategy.
- Equity Volatility
- Equity levels experienced significant variance, rising from US$ 3,572 million in 2012 to a peak of US$ 5,187 million in 2013, before retreating to US$ 4,365 million in 2014. This fluctuation in the equity base served as the primary driver for changes in the leverage ratio.
- Debt to Equity Ratio Trends
- The debt to equity ratio exhibited a non-linear trend. A high of 2.79 in 2012 decreased to 1.92 in 2013, coinciding with the surge in equity. However, the ratio rose back to 2.30 in 2014 as equity contracted, indicating an increase in financial leverage relative to the 2013 trough, although the ratio remained lower than the 2012 baseline.
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Comparison to Competitors
Kraft Foods Group Inc., debt to equity, long-term trends, comparison to competitors
| Kraft Foods Group Inc. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Dec 27, 2014 | 2.30 | 0.00 | 0.13 |
| Dec 28, 2013 | 1.92 | 0.00 | 0.12 |
| Dec 29, 2012 | 2.79 | 0.00 | 0.04 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
Comparison to Sector (Consumer Durables & Apparel)
Kraft Foods Group Inc., debt to equity, long-term trends, comparison to sector (consumer durables & apparel)
| Kraft Foods Group Inc. | Consumer Durables & Apparel | |
|---|---|---|
| Dec 27, 2014 | 2.30 | 0.12 |
| Dec 28, 2013 | 1.92 | 0.12 |
| Dec 29, 2012 | 2.79 | 0.04 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
Comparison to Industry (Consumer Discretionary)
Kraft Foods Group Inc., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| Kraft Foods Group Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 27, 2014 | 2.30 | 1.60 |
| Dec 28, 2013 | 1.92 | 1.25 |
| Dec 29, 2012 | 2.79 | 1.19 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).