Analysis of Geographic Areas
Kraft Heinz Co. operates in 2 regions: United States and Other.
Area Asset Turnover
Kraft Heinz Co., asset turnover by geographic area
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 3.57 | 3.57 | — | — | — |
| Other | 3.48 | 4.08 | — | — | — |
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).
Analysis of asset turnover across geographic segments reveals diverging performance trends between the United States and international markets over the period ending December 28, 2019. While the domestic market exhibited absolute stability, the international segment experienced a notable contraction in asset efficiency.
- United States Area Asset Turnover
- The asset turnover ratio for the United States remained constant at 3.57 across both 2018 and 2019. This indicates a stable relationship between the asset base and the revenue generated within the domestic market.
- Other Geographic Area Asset Turnover
- A decline is observed in the "Other" geographic segment, with the ratio decreasing from 4.08 in 2018 to 3.48 in 2019. This downward trend suggests a decrease in the operational efficiency of assets utilized outside of the United States.
- Comparative Regional Efficiency
- The data highlights a reversal in relative performance. In 2018, international assets were more productive than domestic assets; however, by 2019, the asset turnover in the United States surpassed that of the "Other" region.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Area Asset Turnover: United States
Kraft Heinz Co.; United States; area asset turnover calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 17,844) | 18,218) | —) | —) | —) |
| Long-lived assets | 5,004) | 5,103) | —) | —) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.57 | 3.57 | — | — | — |
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).
1 2019 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 17,844 ÷ 5,004 = 3.57
An analysis of the financial performance within the United States for the fiscal years ending December 2018 and December 2019 reveals a slight contraction in both revenue and the asset base, while operational efficiency remained constant.
- Net Sales and Asset Base Trends
- Net sales experienced a decline from 18,218 million US dollars in 2018 to 17,844 million US dollars in 2019. During the same period, long-lived assets also decreased, moving from 5,103 million US dollars to 5,004 million US dollars.
- Area Asset Turnover Stability
- The area asset turnover ratio remained unchanged at 3.57 for both 2018 and 2019. This stability indicates that the reduction in net sales was proportional to the reduction in long-lived assets, meaning the efficiency of asset utilization in the United States remained steady despite the overall decrease in scale.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Area Asset Turnover: Other
Kraft Heinz Co.; Other; area asset turnover calculation
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 7,133) | 8,050) | —) | —) | —) |
| Long-lived assets | 2,051) | 1,975) | —) | —) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.48 | 4.08 | — | — | — |
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 2019 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 7,133 ÷ 2,051 = 3.48
An analysis of the operational efficiency within the specified geographic area reveals a decline in asset productivity between the 2018 and 2019 fiscal years. The primary driver for this trend is a contraction in revenue coupled with a slight expansion of the asset base.
- Net Sales Performance
- Net sales experienced a notable decrease, falling from 8,050 million US dollars in 2018 to 7,133 million US dollars in 2019. This represents a reduction in revenue generation capacity within this specific region.
- Long-lived Asset Trends
- During the same period, long-lived assets increased from 1,975 million US dollars to 2,051 million US dollars. The growth in the asset base occurred despite the simultaneous decline in sales, indicating that the company maintained or expanded its infrastructure in the region while output diminished.
- Area Asset Turnover Analysis
- The area asset turnover ratio declined from 4.08 in 2018 to 3.48 in 2019. This downward trajectory signifies a reduction in the efficiency with which long-lived assets were utilized to produce sales. The contraction of the ratio is a direct result of the diverging trends between declining sales and increasing asset investments, suggesting a lower return on the assets deployed in this geographic segment.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net sales
Kraft Heinz Co., net sales by geographic area
US$ in millions
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 17,844) | 18,218) | —) | —) | —) |
| Other | 7,133) | 8,050) | —) | —) | —) |
| Total | 24,977) | 26,268) | —) | —) | —) |
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).
A contraction in total net sales is observed between the fiscal years ending December 29, 2018, and December 28, 2019. Total revenue decreased from 26,268 million US dollars to 24,977 million US dollars, representing an overall decline of approximately 4.9%.
- United States Market Performance
- Net sales within the United States experienced a moderate decline, falling from 18,218 million US dollars in 2018 to 17,844 million US dollars in 2019. This represents a decrease of approximately 2.1%, indicating a relatively stable but slightly contracting domestic presence.
- International Market Performance
- The "Other" geographic segment exhibited a more significant downward trend, with net sales decreasing from 8,050 million US dollars to 7,133 million US dollars. This constitutes a contraction of approximately 11.4%, suggesting that international markets faced greater headwinds than the domestic market during this period.
- Geographic Revenue Distribution
- The United States remains the primary driver of total net sales, accounting for approximately 69.4% of total revenue in 2018 and increasing its proportional share to approximately 71.4% in 2019. The increase in the domestic revenue share is a direct consequence of the disproportionately steeper decline in international sales relative to the domestic market.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Long-lived assets
Kraft Heinz Co., long-lived assets by geographic area
US$ in millions
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| United States | 5,004) | 5,103) | —) | —) | —) |
| Other | 2,051) | 1,975) | —) | —) | —) |
| Total | 7,055) | 7,078) | —) | —) | —) |
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).
Total long-lived assets remained relatively stable between 2018 and 2019, experiencing a marginal decrease of approximately 0.3%, falling from 7,078 million US$ to 7,055 million US$. While the aggregate value showed little volatility, a divergence in geographic asset allocation is observed.
- Domestic Asset Trends
- Long-lived assets situated in the United States declined from 5,103 million US$ in 2018 to 5,004 million US$ in 2019. This represents a reduction of approximately 1.9%, indicating a slight contraction in the domestic asset base.
- International Asset Trends
- In contrast, assets in other geographic regions exhibited growth, increasing from 1,975 million US$ in 2018 to 2,051 million US$ in 2019. This upward trend represents an increase of approximately 3.8%.
- Geographic Concentration and Allocation
- The distribution of long-lived assets remains heavily weighted toward the United States, which accounted for 71.9% of the total in 2018 and 70.9% in 2019. The data suggests a minor strategic shift or reallocation of resources, as the growth in international assets largely offset the decline in domestic holdings.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?