Balance Sheet: Liabilities and Stockholders’ Equity
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.
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- Income Statement
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2015
- Price to Earnings (P/E) since 2015
- Price to Operating Profit (P/OP) since 2015
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Kraft Heinz Co., consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
The financial data over the analyzed five-year period reveals several notable trends in the company's liabilities and equity structure.
- Short-term Debt and Current Liabilities
- The commercial paper and other short-term debt experienced sharp fluctuations, decreasing significantly from 4,645 million USD in 2015 to only 6 million USD by 2019. The current portion of long-term debt displayed considerable volatility, peaking at 2,743 million USD in 2017 before dropping considerably in the subsequent years. Trade payables showed an increasing trend until 2017, growing from 2,844 million USD to 4,449 million USD, then slightly declining by 2019. Accrued marketing expenses steadily declined from 856 million USD in 2015 to 647 million USD in 2019, indicating potential reductions in marketing accruals. Interest payable maintained relative stability, hovering around 400 million USD throughout. Other current liabilities generally declined from 2,748 million USD in 2015 to a low of 1,381 million USD in 2017 but saw an uptick again thereafter. The total current liabilities reached their highest value of 10,132 million USD in 2017 before decreasing markedly to 7,875 million USD by 2019.
- Long-term Liabilities
- Long-term debt excluding the current portion exhibited a generally stable yet fluctuating pattern. It rose from 25,151 million USD in 2015 to a peak of 30,770 million USD in 2018, then receded slightly to 28,216 million USD by 2019. Deferred income taxes decreased notably from 21,497 million USD in 2015 to 11,878 million USD in 2019, indicating changes in deferred tax obligations or tax planning strategies. Accrued postemployment costs sharply declined from 2,405 million USD to 273 million USD across the period, reflecting potentially reduced long-term employee-related liabilities. Other non-current liabilities increased overall, starting at 752 million USD and ending at 1,459 million USD in 2019. Non-current liabilities mirrored some of these trends, peaking in 2016 at 53,405 million USD, then reducing significantly to 41,826 million USD by the end of 2019.
- Total Liabilities
- Total liabilities escalated to their peak in 2016 at 62,906 million USD but consistently decreased over the following years, reaching 49,701 million USD in 2019. This trend suggests a focus on liability reduction over time or balance sheet optimization.
- Equity
- Shareholders’ equity fluctuated markedly, reaching its highest level in 2017 at 66,034 million USD, then declining significantly by 2018 and stabilizing near 51,623 million USD in 2019. Retained earnings shifted from a deficit in earlier years to a positive value in 2017 (8,589 million USD) before deteriorating to a negative figure again by 2018 and 2019. This volatility indicates varying profitability or significant adjustments over time. Accumulated other comprehensive losses deepened during the period, indicating increasing unrealized losses or valuation adjustments affecting equity. Treasury stock increased in absolute cost terms, reflecting possible share repurchase activity. Additional paid-in capital remained relatively stable, with a slight decrease in 2019, which may reflect repurchases or adjustments in capital contributions. Noncontrolling interest decreased gradually, pointing to a reduced minority stake presence in the company's financials. Total equity followed similar dynamics to shareholders' equity, peaking in 2017 before diminishing in subsequent years.
- Total Liabilities and Equity
- The combined total liabilities and equity reduced from approximately 123 billion USD in 2015 to about 101 billion USD in 2019, reflecting a contraction in total capitalization. This suggests a possible deliberate downsizing of the balance sheet or changes in asset base during the period.
In summary, the company demonstrated a trend of decreasing total liabilities and equity after peaking around 2016-2017. Short-term and current liabilities experienced significant volatility while long-term liabilities generally declined from mid-period highs. Equity components showed instability, with retained earnings fluctuating widely and comprehensive losses deepening, both contributing to diminishing equity values by the end of 2019. These patterns potentially reflect strategic financial adjustments, changes in operational profitability, and liability management efforts over the five-year span.