Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Kraft Foods Group Inc., solvency ratios
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Kraft Foods Group Inc. debt to equity ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Kraft Foods Group Inc. debt to capital ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Kraft Foods Group Inc. debt to assets ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Kraft Foods Group Inc. financial leverage ratio decreased from 2012 to 2013 but then slightly increased from 2013 to 2014. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Kraft Foods Group Inc. interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Kraft Foods Group Inc. fixed charge coverage ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Debt to Equity
Kraft Foods Group Inc., debt to equity calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 1,405) | 4) | 5) | |
| Long-term debt, excluding current portion | 8,627) | 9,976) | 9,966) | |
| Total debt | 10,032) | 9,980) | 9,971) | |
| Equity | 4,365) | 5,187) | 3,572) | |
| Solvency Ratio | ||||
| Debt to equity1 | 2.30 | 1.92 | 2.79 | |
| Benchmarks | ||||
| Debt to Equity, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Debt to equity = Total debt ÷ Equity
= 10,032 ÷ 4,365 = 2.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Kraft Foods Group Inc. debt to equity ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
Debt to Capital
Kraft Foods Group Inc., debt to capital calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 1,405) | 4) | 5) | |
| Long-term debt, excluding current portion | 8,627) | 9,976) | 9,966) | |
| Total debt | 10,032) | 9,980) | 9,971) | |
| Equity | 4,365) | 5,187) | 3,572) | |
| Total capital | 14,397) | 15,167) | 13,543) | |
| Solvency Ratio | ||||
| Debt to capital1 | 0.70 | 0.66 | 0.74 | |
| Benchmarks | ||||
| Debt to Capital, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,032 ÷ 14,397 = 0.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Kraft Foods Group Inc. debt to capital ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
Debt to Assets
Kraft Foods Group Inc., debt to assets calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 1,405) | 4) | 5) | |
| Long-term debt, excluding current portion | 8,627) | 9,976) | 9,966) | |
| Total debt | 10,032) | 9,980) | 9,971) | |
| Total assets | 22,947) | 23,148) | 23,329) | |
| Solvency Ratio | ||||
| Debt to assets1 | 0.44 | 0.43 | 0.43 | |
| Benchmarks | ||||
| Debt to Assets, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,032 ÷ 22,947 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Kraft Foods Group Inc. debt to assets ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Financial Leverage
Kraft Foods Group Inc., financial leverage calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||
| Financial Leverage, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Financial leverage = Total assets ÷ Equity
= 22,947 ÷ 4,365 = 5.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Kraft Foods Group Inc. financial leverage ratio decreased from 2012 to 2013 but then slightly increased from 2013 to 2014. |
Interest Coverage
Kraft Foods Group Inc., interest coverage calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net earnings | 1,043) | 2,715) | 1,642) | |
| Add: Income tax expense | 363) | 1,375) | 811) | |
| Add: Interest and other expense, net | 484) | 501) | 258) | |
| Earnings before interest and tax (EBIT) | 1,890) | 4,591) | 2,711) | |
| Solvency Ratio | ||||
| Interest coverage1 | 3.90 | 9.16 | 10.51 | |
| Benchmarks | ||||
| Interest Coverage, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,890 ÷ 484 = 3.90
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Kraft Foods Group Inc. interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Fixed Charge Coverage
Kraft Foods Group Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net earnings | 1,043) | 2,715) | 1,642) | |
| Add: Income tax expense | 363) | 1,375) | 811) | |
| Add: Interest and other expense, net | 484) | 501) | 258) | |
| Earnings before interest and tax (EBIT) | 1,890) | 4,591) | 2,711) | |
| Add: Rental expenses | 148) | 176) | 150) | |
| Earnings before fixed charges and tax | 2,038) | 4,767) | 2,861) | |
| Interest and other expense, net | 484) | 501) | 258) | |
| Rental expenses | 148) | 176) | 150) | |
| Fixed charges | 632) | 677) | 408) | |
| Solvency Ratio | ||||
| Fixed charge coverage1 | 3.22 | 7.04 | 7.01 | |
| Benchmarks | ||||
| Fixed Charge Coverage, Competitors2 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 2014 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,038 ÷ 632 = 3.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Kraft Foods Group Inc. fixed charge coverage ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |