Kraft Heinz Co. (NASDAQ:KHC)

Return on Assets (ROA)

The ROA showed a generally increasing trend from 0.52% in 2015 to a peak of 9.15% in 2017, indicating improved efficiency in asset utilization during this period. However, this trend was disrupted in 2018, with a significant decline to -9.85%, signifying a substantial loss relative to assets for that year. In 2019, the ROA partially recovered to 1.91%, suggesting some return to profitability but remaining substantially below the peak levels observed in 2017.

Financial Leverage

The financial leverage ratio remained relatively stable across the five-year span, fluctuating slightly between 1.82 and 2.13. This stability implies a consistent use of debt relative to equity, with a minor decrease noted in 2017 followed by an increase reaching near the initial level by 2019.

Return on Equity (ROE)

The ROE mirrored the pattern observed in ROA, with a steady increase from 1.1% in 2015 to a high of 16.66% in 2017, indicating enhanced profitability and returns to shareholders. This positive trend reversed sharply in 2018, falling to -19.73%, reflecting substantial losses and declining shareholder value. By 2019, ROE improved to 3.75% but remained considerably lower than the peak, suggesting ongoing recovery but continued challenges in generating strong equity returns.

Net Profit Margin

The net profit margin experienced significant fluctuations over the observed periods. Initially, it increased from 3.46% in 2015 to a peak of 41.93% in 2017, indicating a substantial improvement in profitability relative to sales. However, this was followed by a drastic decline to -38.8% in 2018, signaling a period of considerable losses. The margin partially recovered in 2019 to 7.75%, suggesting some stabilization but remaining well below the peak levels.

Asset Turnover

Asset turnover showed a steady upward trend, rising from 0.15 in 2015 to 0.25 by 2018 and maintaining this level through 2019. This indicates improved efficiency in utilizing assets to generate sales, with a clear progression toward more effective asset use over the five-year period.

Financial Leverage

Financial leverage demonstrated moderate variability, starting at 2.13 in 2015 and slightly declining to 1.82 by 2017. It then increased again to 2.00 in 2018 before a marginal decrease to 1.97 in 2019. Overall, leverage remained relatively stable around the 2.0 mark, indicating a consistent degree of debt relative to equity with slight fluctuations.

Return on Equity (ROE)

Return on equity exhibited marked volatility, mirroring trends seen in net profit margin. From a low of 1.1% in 2015, ROE rose steadily to reach 16.66% in 2017. It then declined sharply to -19.73% in 2018, reflecting substantial losses impacting shareholder returns. A moderate recovery to 3.75% ensued in 2019, indicating some improvement but still reflecting lower overall profitability for equity holders compared to earlier years.

Over the examined periods, financial performance exhibited notable fluctuations across the various metrics.

Tax Burden

The tax burden ratio showed variability, starting at 0.63 in 2015 and peaking sharply at 1.99 in 2017. The ratio lacked data for 2018 but decreased back near previous levels by 2019 at 0.73. This suggests irregular tax expense impacts relative to pre-tax earnings during the period.

Interest Burden

Interest burden improved significantly from 0.43 in 2015 to 0.82 in 2016 and maintained at 0.82 in 2017, before dropping to 0.66 in 2019. Missing data in 2018 limits interpretation, but the trend indicates a reduction in interest expense relative to operating profit after 2015, though with some fluctuation.

EBIT Margin

The EBIT margin grew strongly from 12.66% in 2015 to 25.82% in 2017, reflecting improving operational profitability. However, the margin significantly declined to -37.97% in 2018, indicating a substantial loss, before recovering partially to 16.11% in 2019. This volatility points to considerable operational challenges or write-downs in 2018.

Asset Turnover

Asset turnover steadily increased from 0.15 in 2015 to 0.25 by 2018 and remained stable in 2019. This suggests improved efficiency in utilizing assets to generate sales over time.

Financial Leverage

Financial leverage declined from 2.13 in 2015 to 1.82 in 2017, then rose moderately to 2 by 2018 and slightly decreased to 1.97 in 2019. This indicates a fluctuating but generally moderate use of debt relative to equity, with leverage levels remaining fairly consistent in later years.

Return on Equity (ROE)

ROE increased markedly from 1.1% in 2015 to 16.66% in 2017, reflecting enhanced profitability for shareholders. However, it sharply dropped to -19.73% in 2018, mirroring the negative EBIT margin, and then improved to 3.75% in 2019. This pattern underscores significant profitability instability during the period, especially concentrated around 2018.

Overall, the data reveals a period of rising operational efficiency and profitability until 2017, followed by a pronounced downturn in 2018 that affected earnings, margins, and returns, and a partial recovery in 2019. Asset utilization improved steadily, while leverage remained relatively stable with minor fluctuations. The volatility in tax burden and interest burden ratios points to variability in tax and financing cost impacts throughout the timeframe.

Net Profit Margin

The net profit margin shows significant volatility over the five-year period. It starts relatively low at 3.46% in 2015, followed by a substantial increase, reaching a peak of 41.93% in 2017. However, this positive trend is reversed sharply in 2018, with the margin turning negative to -38.8%. By 2019, there is a recovery, though more moderate, with the margin returning to a positive 7.75%. This pattern suggests fluctuating profitability, with a notable decline in 2018 possibly due to extraordinary expenses or operational challenges, before partial recovery.

Asset Turnover

Asset turnover exhibits a gradual upward trend over the analyzed years, beginning at 0.15 in 2015 and increasing steadily to 0.25 by 2018, where it stabilizes through 2019. This improvement indicates enhanced efficiency in utilizing assets to generate revenues, reflecting potentially better asset management or increased sales relative to asset base.

Return on Assets (ROA)

Return on assets mirrors the fluctuations observed in net profit margin, indicating overall profitability relative to asset use. It rises from a low 0.52% in 2015 to a high of 9.15% in 2017, suggesting profitability growth during this period. The metric then drops sharply to -9.85% in 2018, marking a significant period of loss relative to assets invested. By 2019, ROA recovers somewhat to a positive 1.91%, though it remains well below the peak years. This trend implies financial distress in 2018 with partial recovery thereafter.

Tax Burden

The Tax Burden ratio demonstrated variability during the analyzed period. It started at 0.63 in 2015 and increased to 0.72 in 2016. A significant spike is observed in 2017 with a ratio of 1.99, indicating an unusual tax situation or possible accounting adjustment. Data for 2018 is missing, and the ratio normalized back to 0.73 in 2019, approximating earlier levels.

Interest Burden

The Interest Burden ratio improved from 0.43 in 2015 to 0.82 in 2016, remaining stable at 0.82 in 2017. There is no data for 2018. However, a decline occurred in 2019, with the ratio decreasing to 0.66. This suggests that the company faced increased interest expenses relative to earnings in 2019 compared to previous years.

EBIT Margin

The EBIT Margin showed considerable fluctuation. Beginning at 12.66% in 2015, it more than doubled to 23.21% in 2016 and further increased to 25.82% in 2017, indicating improved operational profitability. A sharp reversal occurred in 2018, with the margin turning strongly negative at -37.97%, reflecting significant operational challenges or one-off losses. The margin partially recovered by 2019 to 16.11%, although it remained below the 2017 peak.

Asset Turnover

The Asset Turnover ratio showed a steady positive trend. Starting at 0.15 in 2015, it increased to 0.22 in 2016 and remained stable at that level in 2017. In 2018, the ratio rose again to 0.25 and held steady in 2019. This pattern indicates improved efficiency in the use of assets to generate sales over time.

Return on Assets (ROA)

The ROA exhibited significant volatility. It increased substantially from 0.52% in 2015 to 3.01% in 2016 and further surged to 9.15% in 2017, reflecting enhanced overall profitability. However, in 2018, the ROA turned negative at -9.85%, signaling a period of loss or inefficient asset utilization. By 2019, ROA had rebounded to a positive 1.91%, indicating partial recovery but remaining well below prior peak performance.

Tax Burden

The tax burden ratio exhibits variability across the years, starting at 0.63 in 2015 and increasing significantly to 1.99 in 2017. This peak indicates an unusual tax impact or accounting adjustment during that year. The value dips back to approximately the initial level at 0.73 in 2019, suggesting normalization in tax effects or tax policies after the spike in 2017. The data for 2018 is missing, preventing analysis for that specific year.

Interest Burden

Interest burden shows an upward trend from 0.43 in 2015, stabilizing at 0.82 in both 2016 and 2017, implying consistent interest expenses relative to earnings during these years. There is a decline to 0.66 in 2019, indicating an improvement in managing interest costs or a reduction in interest-bearing debt. The absence of data for 2018 hinders complete trend assessment.

EBIT Margin

The EBIT margin displays considerable fluctuations. The margin increased substantially from 12.66% in 2015 to a peak of 25.82% in 2017, indicating improved operating profitability. However, 2018 shows a dramatic negative swing to -37.97%, which could reflect operational difficulties, extraordinary items, or significant one-time losses. By 2019, the EBIT margin recovers to 16.11%, suggesting partial operational recovery though not reaching previous highs.

Net Profit Margin

The net profit margin follows a pattern similar to EBIT margin, with a steady rise from 3.46% in 2015 to a substantial 41.93% in 2017. The sharp decline to -38.8% in 2018 indicates a significant loss at the net profit level, potentially tied to the negative EBIT margin and possibly additional expense items. In 2019, the margin improves to 7.75%, indicating a partial but not full recovery of profitability.