Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Net Profit Margin since 2015
- Current Ratio since 2015
- Price to Operating Profit (P/OP) since 2015
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Kraft Heinz Co., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-30), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-07-01), 10-Q (reporting date: 2017-04-01), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a generally declining trend over the period from April 2016 to June 2020. Starting at 3.49 in April 2016, the ratio increased briefly to a peak of 4.14 in July 2016 before gradually decreasing to a low of 3.54 in December 2019. There is a mild recovery observed thereafter, reaching 3.75 by June 2020. This pattern suggests a reduction in the efficiency of utilizing net fixed assets to generate sales over time, with some improvement in the most recent quarter.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable throughout the observed quarters, fluctuating narrowly between 0.18 and 0.26. Initial values hovered around 0.18 to 0.22 up to late 2017, then showed a slight upward movement, peaking at 0.26 in June 2020. This consistency indicates a stable ability to generate sales from total assets, with modest improvement evident towards the end of the period.
- Equity Turnover
- Equity turnover demonstrates some variability but an overall positive trend spanning from April 2016 to June 2020. Beginning at 0.39, the ratio rose to 0.46 by late 2016, followed by a decline to 0.40 in late 2017 and early 2018. From early 2018 onward, a gradual increase is observed, peaking at 0.52 in June 2020. This upward trajectory points to an enhanced efficiency in using shareholders' equity to generate revenue, especially notable from 2018 onwards.
Net Fixed Asset Turnover
Kraft Heinz Co., net fixed asset turnover calculation (quarterly data)
| Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 30, 2017 | Sep 30, 2017 | Jul 1, 2017 | Apr 1, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-30), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-07-01), 10-Q (reporting date: 2017-04-01), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
1 Q2 2020 Calculation
Net fixed asset turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrate a recurring seasonal pattern over the observed quarters, with fluctuations noticeable across each fiscal year. Initially, sales ranged from approximately 6,267 million to 6,857 million US dollars in 2016. A similar pattern persists through subsequent years, with sales generally peaking in the fourth quarters and dipping in the first quarters, reflecting typical seasonality. However, there is a slight overall downward trend in peak sales from 6,891 million in Q4 2018 to 6,536 million in Q4 2019, followed by stabilization around the 6,150 to 6,650 million range in early 2020.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment shows a gradual increase from 6,434 million at the start of the period to a peak of 7,120 million at the end of 2017. Following this peak, a mild decline is observed, with values declining to approximately 6,777 million by mid-2020. This indicates some level of asset depreciation or disposals after the peak, though the overall asset base remains relatively stable over the period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio trends downward from 3.49 in Q2 2016 to 3.54 by the end of 2019, indicating a slight decrease in the efficiency of using fixed assets to generate sales. The ratio fluctuates with some short-term recoveries, such as increases seen around late 2018 and mid-2020, but the general trend suggests diminishing returns on fixed asset investments. This could reflect either slower sales growth relative to asset growth or an accumulation of assets not yet fully leveraged for revenue generation.
- Overall Insights
- The data indicates a company experiencing stable but slightly declining sales volumes with seasonal cyclicality. The modest decrease in asset turnover ratio implies a need to evaluate asset utilization efficiency. Despite some growth in asset base early on, the subsequent decline suggests that investments in fixed assets may not have consistently translated into proportional sales growth. Management might consider strategies to optimize asset deployment and address potential inefficiencies that have emerged over this time frame.
Total Asset Turnover
Kraft Heinz Co., total asset turnover calculation (quarterly data)
| Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 30, 2017 | Sep 30, 2017 | Jul 1, 2017 | Apr 1, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-30), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-07-01), 10-Q (reporting date: 2017-04-01), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
1 Q2 2020 Calculation
Total asset turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures exhibit a seasonal pattern with fluctuations around an average range. Generally, net sales tend to peak in the last quarter of each year, particularly noticeable in December periods. For instance, the quarterly sales rose from 6,570 million USD in April 2016 to a high of about 6,891 million USD in December 2018. However, a downward trend is observed in the first quarters of calendar years, such as a decline from 6,304 million USD in March 2018 to 5,959 million USD in March 2019. Overall, net sales demonstrate moderate volatility but appear relatively stable over the analyzed timeframe.
- Total Assets
- Total assets show a gradual declining trend from 2016 through 2020, decreasing from approximately 123.3 billion USD in April 2016 to about 98.3 billion USD in June 2020. A notable reduction occurs around late 2018 when total assets drop sharply from around 120 billion USD to near 103 billion USD, suggesting possible asset sales or impairments during this period. Since then, total assets have remained relatively stable but continued to decline slightly towards mid-2020.
- Total Asset Turnover Ratio
- The total asset turnover ratio, measuring the efficiency in using assets to generate sales, generally improves over the period. Starting at 0.18 in April 2016, the ratio increases steadily to approximately 0.26 by June 2020. This trend indicates enhanced asset utilization or improved operational efficiency despite the reduction in asset base. The upward movement particularly accelerates after late 2018, coinciding with the reduction in total assets, suggesting that the company has managed to maintain or slightly increase sales relative to the smaller asset base.
- Summary
- The data reflect a company that is experiencing seasonal variability in sales but maintaining relatively steady annual volumes. The decline in total assets around late 2018 appears significant, possibly related to strategic restructuring or divestitures. Despite this contraction, efficiency metrics such as the total asset turnover ratio have improved, pointing to better use of assets or operational improvements. The simultaneous reduction in asset size and stable sales with improved turnover ratios may signal a focus on asset optimization and possibly cost management initiatives.
Equity Turnover
Kraft Heinz Co., equity turnover calculation (quarterly data)
| Jun 27, 2020 | Mar 28, 2020 | Dec 28, 2019 | Sep 28, 2019 | Jun 29, 2019 | Mar 30, 2019 | Dec 29, 2018 | Sep 29, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 30, 2017 | Sep 30, 2017 | Jul 1, 2017 | Apr 1, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30), 10-K (reporting date: 2018-12-29), 10-Q (reporting date: 2018-09-29), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-30), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-07-01), 10-Q (reporting date: 2017-04-01), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).
1 Q2 2020 Calculation
Equity turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures exhibited a cyclical pattern with quarterly fluctuations throughout the observed periods. From the first quarter of 2016 to the second quarter of 2017, net sales generally ranged between approximately $6.3 billion and $6.9 billion, showing no consistent upward or downward trend but rather periodic increases and decreases. This pattern persisted in subsequent years, with sales values oscillating within a similar range. Notably, the highest quarterly sales were observed around the end of each calendar year and the second quarter of the year, reflecting potential seasonal effects. Overall, net sales maintained relative stability over the analyzed timeframe without significant growth or contraction.
- Shareholders’ Equity
- Shareholders’ equity remained relatively stable during the early periods between 2016 and 2017, hovering in the range of approximately $57 billion to $66 billion. A marked decline is observable in late 2018, where equity dropped sharply from around $65 billion to approximately $51 billion. Following this decline, equity maintained a downward trajectory, reaching near $49 billion by mid-2020. This reduction in shareholders’ equity may suggest impairments, losses, dividend payouts exceeding net income, or capital restructuring events. The notable drop in late 2018 appears to be the most significant inflection point over the entire period.
- Equity Turnover Ratio
- The equity turnover ratio, which measures net sales relative to shareholders’ equity, showed some variation but maintained a band between 0.39 and 0.52. Early periods from 2016 to early 2017 indicated a modest increase, with ratios around 0.39 to 0.46. A subsequent dip was observed moving into late 2017 and into 2018, where the ratio declined to approximately 0.4. Starting in late 2018, the ratio increased distinctly, reaching the upper end of the range near 0.51 to 0.52 by mid-2020. This upward trend in the equity turnover ratio, especially coinciding with the decreasing shareholders’ equity, suggests improved efficiency in generating sales from the company's equity base or a relative reduction in equity without a proportional decline in sales.