Return on Equity (ROE)
since 2015
Calculation
Kraft Heinz Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Kraft Heinz1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 28, 2019 | 3.75% | = | 100 | × | 1,935) | ÷ | 51,623) |
| Dec 29, 2018 | -19.73% | = | 100 | × | (10,192) | ÷ | 51,657) |
| Dec 30, 2017 | 16.66% | = | 100 | × | 10,999) | ÷ | 66,034) |
| Dec 31, 2016 | 6.33% | = | 100 | × | 3,632) | ÷ | 57,358) |
| Dec 31, 2015 | 1.10% | = | 100 | × | 634) | ÷ | 57,685) |
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
- Net Income (Loss) Attributable to Kraft Heinz
- The net income experienced considerable volatility over the observed period. Starting at 634 million US dollars in 2015, there was a significant increase to 3,632 million in 2016, followed by a dramatic peak at 10,999 million in 2017. Subsequently, the company encountered a substantial loss of 10,192 million in 2018, before returning to a positive net income of 1,935 million in 2019. This pattern indicates a highly unstable profitability trajectory with a noteworthy downturn in 2018.
- Shareholders’ Equity
- Shareholders’ equity fluctuated notably throughout the periods. It commenced at 57,685 million US dollars in 2015, remained relatively stable in 2016 at 57,358 million, and then increased to 66,034 million in 2017. However, a sharp decline occurred in 2018 to 51,657 million, followed by a slight decrease in 2019 to 51,623 million. The drop after 2017 suggests either asset write-downs, dividend payments exceeding profits, or other factors negatively impacting the equity base.
- Return on Equity (ROE)
- The return on equity shows a trend correlating with the net income and equity changes. Starting from a low 1.1% in 2015, ROE rose markedly to 6.33% in 2016 and peaked at 16.66% in 2017, reflecting strong profitability relative to equity. In 2018, ROE plummeted to -19.73%, aligning with the large net loss and decreased equity. It partially recovered to 3.75% in 2019, demonstrating a slight improvement in generating returns on shareholders’ equity despite ongoing challenges.
Comparison to Competitors
Kraft Heinz Co., ROE, long-term trends, comparison to competitors
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 28, 2019 | 3.75% | 46.99% | 14.19% | 49.47% | — |
| Dec 29, 2018 | -19.73% | 37.89% | 13.19% | 86.20% | — |
| Dec 30, 2017 | 16.66% | 7.31% | 11.19% | 44.60% | — |
| Dec 31, 2016 | 6.33% | 28.30% | 6.59% | 57.04% | — |
| Dec 31, 2015 | 1.10% | 28.77% | 25.94% | 45.73% | — |
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., ROE, long-term trends, comparison to sector (food, beverage & tobacco)
| Kraft Heinz Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 28, 2019 | 3.75% | 55.17% |
| Dec 29, 2018 | -19.73% | 67.69% |
| Dec 30, 2017 | 16.66% | 35.87% |
| Dec 31, 2016 | 6.33% | 46.07% |
| Dec 31, 2015 | 1.10% | 51.57% |
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., ROE, long-term trends, comparison to industry (consumer staples)
| Kraft Heinz Co. | Consumer Staples | |
|---|---|---|
| Dec 28, 2019 | 3.75% | 22.71% |
| Dec 29, 2018 | -19.73% | 28.05% |
| Dec 30, 2017 | 16.66% | 25.14% |
| Dec 31, 2016 | 6.33% | 25.00% |
| Dec 31, 2015 | 1.10% | 23.15% |
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).