Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2012
- Total Asset Turnover since 2012
- Price to Operating Profit (P/OP) since 2012
- Price to Book Value (P/BV) since 2012
- Analysis of Revenues
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Kraft Foods Group Inc., long-term (investment) activity ratios (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net fixed asset turnover | |||||||||||||
| Total asset turnover | |||||||||||||
| Equity turnover |
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
The analysis of the quarterly financial ratios over the specified periods reveals several noteworthy trends in the operational efficiency and asset utilization.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a gradual decline from 4.57 at the end of March 2013 to 4.34 by March 2015. This steady decrease indicates a slight reduction in the efficiency of using fixed assets to generate sales over the two-year period. The ratio stabilized around 4.34 in the last two quarters, suggesting that the decline may have plateaued.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable throughout the entire period, fluctuating narrowly between 0.77 and 0.79. This stability indicates that the overall efficiency of utilizing total assets to produce revenue has been maintained without significant variation, reflecting consistent management of asset resources.
- Equity Turnover
- The equity turnover ratio exhibits a more volatile pattern. It decreases substantially from 4.92 in March 2013 to a low of 3.24 in September 2014, pointing to a diminishing rate of revenue generation per unit of equity. However, subsequent quarters show a marked recovery, rising to 4.17 by December 2014 and slightly declining to 4.03 by March 2015. This rebound suggests improved utilization of equity capital in the latter part of the analyzed timeframe.
In summary, while total asset usage efficiency has remained steady, there is a discernible downward trend in net fixed asset efficiency, and equity turnover has experienced a notable drop followed by partial recovery. These patterns could imply shifts in operational strategy, investment in fixed assets, or changes in capital structure affecting financial performance.
Net Fixed Asset Turnover
Kraft Foods Group Inc., net fixed asset turnover calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||
| Net revenues | |||||||||||||
| Property, plant and equipment, net | |||||||||||||
| Long-term Activity Ratio | |||||||||||||
| Net fixed asset turnover1 | |||||||||||||
| Benchmarks | |||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||
| lululemon athletica inc. | |||||||||||||
| Nike Inc. | |||||||||||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
1 Q1 2015 Calculation
Net fixed asset turnover
= (Net revenuesQ1 2015
+ Net revenuesQ4 2014
+ Net revenuesQ3 2014
+ Net revenuesQ2 2014)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
-
The net revenues exhibit a fluctuating but generally stable pattern across the observed quarters. The values ranged from a low of approximately 4,352 million US dollars in the first quarter of 2015 to a high near 4,747 million US dollars in the second quarter of 2014. There is no clear upward or downward trend; instead, revenues oscillate quarter-to-quarter, reflecting potential seasonal variability or market conditions impacting sales.
- Property, Plant and Equipment, Net
-
The net value of property, plant, and equipment shows a gradual increase over the period. Starting at around 4,026 million US dollars in early 2013, the asset base grows steadily to reach approximately 4,194 million US dollars by the first quarter of 2015. This consistent upward movement suggests ongoing investment or capital expenditure aimed at maintaining or expanding operational capacity.
- Net Fixed Asset Turnover
-
The net fixed asset turnover ratio shows a slight declining trend during the timeframe. Beginning at 4.57 in the first quarter of 2013, it decreases to approximately 4.34 by the first quarter of 2015. This indicates a modest reduction in revenue generated per unit of fixed assets, which may imply either a declining efficiency in utilizing fixed assets or the impact of increased asset base not yet matched by revenue growth.
Total Asset Turnover
Kraft Foods Group Inc., total asset turnover calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||
| Net revenues | |||||||||||||
| Total assets | |||||||||||||
| Long-term Activity Ratio | |||||||||||||
| Total asset turnover1 | |||||||||||||
| Benchmarks | |||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||
| lululemon athletica inc. | |||||||||||||
| Nike Inc. | |||||||||||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
1 Q1 2015 Calculation
Total asset turnover
= (Net revenuesQ1 2015
+ Net revenuesQ4 2014
+ Net revenuesQ3 2014
+ Net revenuesQ2 2014)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data indicates several notable trends across the observed periods.
- Net Revenues
- Net revenues exhibit a seasonal pattern with fluctuations within a relatively narrow range between approximately 4,350 million and 4,750 million US dollars. The values tend to peak during the second and fourth quarters of each year, reaching highs such as 4,747 million in June 2014 and 4,696 million in December 2014. Conversely, the first and third quarters generally show slightly lower figures, around the 4,350 to 4,400 million mark. Despite these oscillations, there is no clear long-term upward or downward trend, as revenues at the beginning and end of the period remain close in magnitude.
- Total Assets
- Total assets remain relatively stable throughout the nine quarters, fluctuating narrowly between approximately 22,800 million and 23,600 million US dollars. The asset base shows a mild increase toward the middle of the observed timeframe, peaking near 23,361 million in March 2014, before experiencing a slight decline and stabilizing around 23,100 million by March 2015. This stability suggests a consistent investment level in assets without significant expansion or contraction.
- Total Asset Turnover
- The total asset turnover ratio remains steady across all reported quarters, holding close to 0.79 with minimal variation. This consistency indicates that the efficiency with which assets are used to generate revenues has remained unchanged over the period. The ratio's stability suggests that operational productivity relative to asset size has been maintained without significant improvement or deterioration.
Equity Turnover
Kraft Foods Group Inc., equity turnover calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||
| Net revenues | |||||||||||||
| Equity | |||||||||||||
| Long-term Activity Ratio | |||||||||||||
| Equity turnover1 | |||||||||||||
| Benchmarks | |||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||
| lululemon athletica inc. | |||||||||||||
| Nike Inc. | |||||||||||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
1 Q1 2015 Calculation
Equity turnover
= (Net revenuesQ1 2015
+ Net revenuesQ4 2014
+ Net revenuesQ3 2014
+ Net revenuesQ2 2014)
÷ Equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues exhibit fluctuations over the observed periods without a clear upward or downward long-term trend. The figures oscillate around a range between approximately 4,350 million and 4,750 million US dollars. Noteworthy is the recurrence of lower revenues near the end of the first quarter each year, visible in March 2014 and March 2015, with values falling below 4,400 million US dollars at those points. Mid-year quarters often show relatively higher revenue figures, as seen in June 2013 and June 2014, where revenues approach or surpass 4,700 million US dollars. This pattern suggests a degree of seasonality or cyclicality in revenue generation across quarters.
- Equity
- Equity demonstrates an overall incremental trend from March 2013 through September 2014, increasing from 3,742 million US dollars to 5,585 million US dollars. This growth reflects a roughly 49% increase over this period. However, there is a notable decline in equity at the end of 2014, dropping to 4,365 million US dollars, representing a sharp contraction following prior gains. The first quarter of 2015 shows a slight recovery, with equity rising to 4,517 million US dollars, but it remains significantly below the previous peak. This volatility in equity towards the end of the observed timeline may indicate restructuring, asset revaluation, or dividend distributions impacting shareholders’ equity.
- Equity Turnover
- The equity turnover ratio, calculated by dividing net revenues by equity, decreases steadily from 4.92 in March 2013 to 3.24 in September 2014. This decline indicates that net revenues generated per unit of equity have diminished over this period, potentially reflecting growth in equity that outpaces revenue increases, or deceleration in revenue growth relative to equity. Notably, after September 2014, the equity turnover ratio rises to 4.17 in December 2014 and remains around 4.03 in March 2015. The rise corresponds with the sharp decrease in equity during this period. Consequently, the increase in turnover ratio may be a function of reduced equity rather than improved revenue efficiency.
- Overall Insights
- The data reveals that while net revenues remain relatively stable with cyclical variations, equity expanded substantially over the first six quarters before experiencing a significant reduction. The inverse relationship between equity and equity turnover ratio notably affects the interpretation of operational efficiency. The pattern suggests that the company’s asset base and funding structure evolved materially in the assessment period, influencing the financial ratios. There is no strong upward revenue trend, and fluctuations in equity and turnover ratios highlight potential operational and financial adjustments during the latter part of the timeline.