Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Kraft Foods Group Inc., profitability ratios
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Kraft Foods Group Inc. gross profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Kraft Foods Group Inc. operating profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Kraft Foods Group Inc. net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Kraft Foods Group Inc. ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Kraft Foods Group Inc. ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Gross Profit Margin
Kraft Foods Group Inc., gross profit margin calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Gross profit | 4,845) | 6,823) | 5,840) | |
| Net revenues | 18,205) | 18,218) | 18,339) | |
| Profitability Ratio | ||||
| Gross profit margin1 | 26.61% | 37.45% | 31.84% | |
| Benchmarks | ||||
| Gross Profit Margin, 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
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 4,845 ÷ 18,205 = 26.61%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Kraft Foods Group Inc. gross profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Operating Profit Margin
Kraft Foods Group Inc., operating profit margin calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Operating income | 1,890) | 4,591) | 2,670) | |
| Net revenues | 18,205) | 18,218) | 18,339) | |
| Profitability Ratio | ||||
| Operating profit margin1 | 10.38% | 25.20% | 14.56% | |
| Benchmarks | ||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 1,890 ÷ 18,205 = 10.38%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Kraft Foods Group Inc. operating profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Net Profit Margin
Kraft Foods Group Inc., net profit margin 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) | |
| Net revenues | 18,205) | 18,218) | 18,339) | |
| Profitability Ratio | ||||
| Net profit margin1 | 5.73% | 14.90% | 8.95% | |
| Benchmarks | ||||
| Net Profit Margin, 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
Net profit margin = 100 × Net earnings ÷ Net revenues
= 100 × 1,043 ÷ 18,205 = 5.73%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Kraft Foods Group Inc. net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Return on Equity (ROE)
Kraft Foods Group Inc., ROE 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) | |
| Equity | 4,365) | 5,187) | 3,572) | |
| Profitability Ratio | ||||
| ROE1 | 23.89% | 52.34% | 45.97% | |
| Benchmarks | ||||
| ROE, 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
ROE = 100 × Net earnings ÷ Equity
= 100 × 1,043 ÷ 4,365 = 23.89%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Kraft Foods Group Inc. ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Return on Assets (ROA)
Kraft Foods Group Inc., ROA 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) | |
| Total assets | 22,947) | 23,148) | 23,329) | |
| Profitability Ratio | ||||
| ROA1 | 4.55% | 11.73% | 7.04% | |
| Benchmarks | ||||
| ROA, 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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 1,043 ÷ 22,947 = 4.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Kraft Foods Group Inc. ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |