Return on Assets (ROA)
since 2015
Calculation
Kraft Heinz Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Kraft Heinz1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 28, 2019 | 1.91% | = | 100 | × | 1,935) | ÷ | 101,450) |
| Dec 29, 2018 | -9.85% | = | 100 | × | (10,192) | ÷ | 103,461) |
| Dec 30, 2017 | 9.15% | = | 100 | × | 10,999) | ÷ | 120,232) |
| Dec 31, 2016 | 3.01% | = | 100 | × | 3,632) | ÷ | 120,480) |
| Dec 31, 2015 | 0.52% | = | 100 | × | 634) | ÷ | 122,973) |
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).
1 US$ in millions
The Return on Assets (ROA) exhibited significant fluctuations between 2015 and 2019. Initial values were relatively modest, followed by a period of substantial growth, a dramatic decline, and a partial recovery.
- ROA Trend
- In 2015, the ROA stood at 0.52%. This increased considerably to 3.01% in 2016, and continued to rise sharply to a peak of 9.15% in 2017. A substantial reversal occurred in 2018, with the ROA plummeting to -9.85%. The final period observed, 2019, showed a recovery to 1.91%, though remaining below the 2016 and 2017 levels.
- Net Income Influence
- The ROA’s trajectory closely mirrors the changes in net income attributable to the company. The substantial increases in ROA in 2016 and 2017 correspond with significant increases in net income. Conversely, the negative ROA in 2018 aligns with the reported net loss for that year. The partial recovery in ROA in 2019 is consistent with the return to positive net income.
- Asset Base Consideration
- Total assets decreased from 2015 to 2019, moving from US$122,973 million to US$101,450 million. While the decline in assets may have exerted some influence on the ROA, the primary driver of the observed fluctuations appears to be the volatility in net income. The largest asset reduction occurred between 2017 and 2018, coinciding with the largest swing in ROA.
Overall, the ROA demonstrates a strong correlation with profitability. The period under review highlights the sensitivity of this metric to net income and suggests that maintaining consistent profitability is crucial for improving and sustaining ROA.
Comparison to Competitors
Kraft Heinz Co., ROA, long-term trends, comparison to competitors
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 28, 2019 | 1.91% | 10.33% | 6.00% | 9.31% | 16.76% |
| Dec 29, 2018 | -9.85% | 7.73% | 5.39% | 16.12% | 19.88% |
| Dec 30, 2017 | 9.15% | 1.42% | 4.63% | 6.09% | 14.05% |
| Dec 31, 2016 | 3.01% | 7.48% | 2.70% | 8.54% | 18.91% |
| Dec 31, 2015 | 0.52% | 8.16% | 11.56% | 7.83% | 20.24% |
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).
Comparison to Sector (Food, Beverage & Tobacco)
Kraft Heinz Co., ROA, long-term trends, comparison to sector (food, beverage & tobacco)
| Kraft Heinz Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 28, 2019 | 1.91% | 10.02% |
| Dec 29, 2018 | -9.85% | 11.48% |
| Dec 30, 2017 | 9.15% | 5.50% |
| Dec 31, 2016 | 3.01% | 8.27% |
| Dec 31, 2015 | 0.52% | 10.50% |
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).
Comparison to Industry (Consumer Staples)
Kraft Heinz Co., ROA, long-term trends, comparison to industry (consumer staples)
| Kraft Heinz Co. | Consumer Staples | |
|---|---|---|
| Dec 28, 2019 | 1.91% | 6.41% |
| Dec 29, 2018 | -9.85% | 8.40% |
| Dec 30, 2017 | 9.15% | 7.42% |
| Dec 31, 2016 | 3.01% | 7.94% |
| Dec 31, 2015 | 0.52% | 7.69% |
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).