Total Asset Turnover
since 2015
Calculation
Kraft Heinz Co., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 28, 2019 | 0.25 | = | 24,977) | ÷ | 101,450) |
| Dec 29, 2018 | 0.25 | = | 26,268) | ÷ | 103,461) |
| Dec 30, 2017 | 0.22 | = | 26,232) | ÷ | 120,232) |
| Dec 31, 2016 | 0.22 | = | 26,487) | ÷ | 120,480) |
| Dec 31, 2015 | 0.15 | = | 18,338) | ÷ | 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 information presents a review of net sales, total assets, and total asset turnover from 2015 through 2019. A consistent upward trend in total asset turnover is observed, while net sales demonstrate initial growth followed by a decline. Total assets decreased over the period.
- Total Asset Turnover
- The total asset turnover ratio increased from 0.15 in 2015 to 0.22 in 2016, representing a significant improvement in asset utilization. This upward trend continued, reaching 0.25 in both 2018 and 2019, indicating a sustained increase in the efficiency with which assets are being used to generate sales. The ratio suggests that for every dollar of assets, the company generated approximately 25 cents in sales during the latter years of the period.
- Net Sales
- Net sales experienced substantial growth between 2015 and 2016, increasing from US$18,338 million to US$26,487 million. However, sales figures plateaued in 2017 and 2018, remaining relatively consistent around US$26,200 million. A decrease in net sales was then observed in 2019, with sales falling to US$24,977 million. This suggests a potential shift in sales performance after the initial period of growth.
- Total Assets
- Total assets decreased from US$122,973 million in 2015 to US$120,480 million in 2016, followed by a further slight decrease to US$120,232 million in 2017. A more substantial reduction in total assets occurred between 2017 and 2018, falling to US$103,461 million. This downward trend continued into 2019, with total assets reaching US$101,450 million. The decline in total assets, coupled with the increasing asset turnover ratio, suggests a strategic focus on optimizing asset utilization and potentially divesting underperforming assets.
The combination of decreasing asset levels and increasing asset turnover suggests the company may be becoming more efficient in its operations, generating more sales from a smaller asset base. However, the decline in net sales in 2019 warrants further investigation to determine the underlying causes and potential impact on future performance.
Comparison to Competitors
Kraft Heinz Co., total asset turnover, long-term trends, comparison to competitors
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 28, 2019 | 0.25 | 0.43 | 0.40 | 0.86 | 0.70 |
| Dec 29, 2018 | 0.25 | 0.38 | 0.41 | 0.83 | 0.74 |
| Dec 30, 2017 | 0.22 | 0.40 | 0.41 | 0.80 | 0.67 |
| Dec 31, 2016 | 0.22 | 0.48 | 0.42 | 0.85 | 0.72 |
| Dec 31, 2015 | 0.15 | 0.49 | 0.47 | 0.91 | 0.79 |
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., total asset turnover, long-term trends, comparison to sector (food, beverage & tobacco)
| Kraft Heinz Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 28, 2019 | 0.25 | 0.59 |
| Dec 29, 2018 | 0.25 | 0.58 |
| Dec 30, 2017 | 0.22 | 0.56 |
| Dec 31, 2016 | 0.22 | 0.61 |
| Dec 31, 2015 | 0.15 | 0.64 |
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., total asset turnover, long-term trends, comparison to industry (consumer staples)
| Kraft Heinz Co. | Consumer Staples | |
|---|---|---|
| Dec 28, 2019 | 0.25 | 1.39 |
| Dec 29, 2018 | 0.25 | 1.39 |
| Dec 30, 2017 | 0.22 | 1.34 |
| Dec 31, 2016 | 0.22 | 1.35 |
| Dec 31, 2015 | 0.15 | 1.37 |
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).