Kraft Heinz Co. (NASDAQ:KHC)

Current Assets

The current assets exhibit a fluctuating trend over the five-year period. Starting at 9,780 million US dollars in 2015, there is a noticeable decline to 8,753 million in 2016, followed by a further decrease to 7,266 million in 2017. In 2018, current assets rebound significantly to 9,075 million, before declining again to 8,097 million in 2019. This pattern suggests variability in short-term asset management or changes in working capital components.

Adjusted Current Assets

Adjusted current assets largely mirror the trend observed in current assets, starting at 9,812 million in 2015 and decreasing through 2016 and 2017 to 8,773 million and 7,289 million respectively. A substantial increase occurs in 2018 to 9,099 million, after which adjusted current assets decrease again to 8,130 million in 2019. The close alignment between adjusted and standard current assets suggests that the adjustments do not significantly alter the overall trends identified in current assets.

Overall Analysis

The data reflects periodic fluctuations in both current and adjusted current assets, with a general decline during the middle years followed by a partial recovery and subsequent decrease. This could imply underlying variability in operational liquidity or inventory management practices. The parallel movement of adjusted and unadjusted figures indicates adjustments have minimal impact on the interpretation of asset trends during the period analyzed.

Total assets

The total assets demonstrate a gradual decline over the five-year span. Beginning at approximately $123 billion in 2015, the figure slightly decreased to about $120 billion by 2017. From 2018 onwards, there is a more marked reduction, falling from roughly $103.5 billion to about $101.5 billion by the end of 2019. This progressive downward trend indicates a consistent decrease in the company’s asset base over the period analyzed.

Adjusted total assets

The adjusted total assets mirror the pattern observed in total assets, with values starting just above $123.5 billion in 2015 and showing a steady decline through to 2019, where the figure settles slightly above $101 billion. The closeness of adjusted total assets to total assets throughout the periods suggests minimal adjustments relative to the overall asset size.

The financial data indicates a general downward trend in both total liabilities and adjusted total liabilities over the observed periods, with some fluctuations.

Total liabilities

Initially, total liabilities increased from approximately 56.7 billion US dollars at the end of 2015 to nearly 62.9 billion by the end of 2016, which represents a significant rise. Following this peak, there was a marked decline over the subsequent years, reaching about 49.7 billion by the end of 2019. This progression suggests an effort to reduce the overall liabilities after 2016.

Adjusted total liabilities

Adjusted total liabilities followed a similar pattern, beginning at approximately 35.6 billion US dollars in 2015 and rising to roughly 42.3 billion in 2016. Subsequent years exhibit a gradual decrease, with the figure declining to nearly 37.8 billion by 2019. The decrease from 2016 onwards was steadier compared to the total liabilities.

Comparative insights

Both total and adjusted total liabilities reach their highest points in 2016, after which a consistent reduction trend is evident. The adjusted total liabilities represent a smaller portion compared to total liabilities across all periods, indicating that adjustments account for a significant portion of the liabilities. The reduction in liabilities could reflect strategic measures to improve the company's financial leverage and risk profile over the latter years.

Shareholders’ Equity

The shareholders’ equity value shows a fluctuating trend over the five-year period. Starting at approximately 57,685 million USD at the end of 2015, it slightly decreased to 57,358 million USD in 2016. This was followed by a notable increase to 66,034 million USD in 2017, marking the highest point in the period analyzed.

However, from 2017 onwards, shareholders’ equity experienced a significant decline, dropping sharply to 51,657 million USD in 2018 and stabilizing slightly at 51,623 million USD in 2019. This suggests a reduction in net assets attributable to shareholders during the latter two years, indicating possible challenges or adjustments impacting equity.

Adjusted Total Equity

Adjusted total equity also exhibits a generally downward trend but with less volatility than the shareholders’ equity. Beginning at 79,638 million USD in 2015, there is a small decrease to 78,535 million USD in 2016, followed by a moderate increase reaching 80,368 million USD in 2017.

After 2017, the adjusted total equity declined significantly to 64,027 million USD in 2018 and then slightly to 63,609 million USD in 2019. The sharp decrease between 2017 and 2018 reflects a considerable reduction in the company’s adjusted net equity, which might be due to write-downs, impairments, or other comprehensive income changes affecting the adjusted figures.

Comparative Insights

Both shareholders’ equity and adjusted total equity reached peak levels in 2017, followed by pronounced declines through 2018 and 2019. The adjusted total equity consistently remains higher than shareholders’ equity, indicating that adjustments made beyond the book equity provide a more comprehensive but also declining measure of net assets.

The substantial drop in both metrics after 2017 may point to underlying financial pressures or restructuring activities within the company that impacted its capital base and asset valuation. The relatively stable figures from 2018 to 2019 suggest the company may have reached a new equilibrium at a lower level of equity.

Total Reported Debt

The total reported debt increased from 25,234 million US dollars in 2015 to a peak of 32,404 million in 2016. After this peak, it showed a gradual decrease, reaching 29,244 million by the end of 2019. This indicates that debt levels were initially rising but were somewhat reduced over the latter years.

Shareholders’ Equity

Shareholders’ equity remained relatively stable between 2015 and 2016, with a slight decrease from 57,685 million to 57,358 million. A notable increase occurred in 2017, rising sharply to 66,034 million. However, this was followed by a significant decline in 2018, dropping to 51,657 million, and it remained fairly constant into 2019 at 51,623 million. This pattern suggests some volatility in equity, especially in the latter years.

Total Reported Capital

Total reported capital rose steadily from 82,919 million in 2015 to a high of 97,570 million in 2017. However, there was a marked decline starting in 2018 to 82,825 million, which continued into 2019 with a slight further decrease to 80,867 million. The trend indicates overall capital growth initially, then a reversal and reduction in the final years.

Adjusted Total Debt

Adjusted total debt mirrored the trend of total reported debt, increasing from 25,825 million in 2015 to 32,787 million in 2016, followed by a gradual decline to 29,845 million by 2019. The adjusted figures confirm the pattern of an initial rise in debt followed by a reduction.

Adjusted Total Equity

Adjusted total equity declined consistently from 79,638 million in 2015 to 63,609 million in 2019. This steady decrease contrasts with the volatility seen in reported shareholders’ equity, indicating a persistent weakening in adjusted equity during this period.

Adjusted Total Capital

Adjusted total capital showed a gradual increase from 105,463 million in 2015 to a peak of 112,321 million in 2017, then experienced a pronounced decline to 95,763 million in 2018 and a further slight decrease to 93,454 million in 2019. The trend suggests an expansion of capital up to 2017 followed by a contraction in subsequent years.

The financial data reveals significant fluctuations in the net income and adjusted net income of the company over the five-year period. Both measures exhibit notable volatility, with periods of substantial profit followed by a marked loss and subsequent recovery.

Net Income (Loss) Attributable to Kraft Heinz

The net income started at 634 million USD at the end of 2015 and saw a considerable increase in 2016, reaching 3,632 million USD. This upward trend accelerated sharply in 2017, peaking at 10,999 million USD. However, the following year, 2018, experienced a steep decline, resulting in a significant net loss of 10,192 million USD. In 2019, the net income returned to positive territory, registering 1,935 million USD, though still substantially lower than the 2017 peak.

Adjusted Net Income (Loss)

The adjusted net income demonstrates a similar pattern, albeit with slightly different magnitudes. Starting at 389 million USD in 2015, it rose substantially to 2,539 million USD in 2016, and more than doubled to 5,053 million USD in 2017. 2018 showed a pronounced decrease, with adjusted net income tipping into a loss of 13,154 million USD. The figure bounced back to a positive 1,560 million USD in 2019, reflecting partial recovery but remaining below the levels seen in 2016 and 2017.

Overall, the data indicates a period of strong profitability culminating in 2017, followed by a severe downturn in 2018, and a partial recovery in 2019. The wide swings, especially the drastic drop in 2018, suggest the influence of extraordinary or non-recurring items impacting earnings. The trend underscores the company's exposure to volatility in profitability during these years.