Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2015
- Price to Earnings (P/E) since 2015
- Price to Operating Profit (P/OP) since 2015
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Profitability Ratios (Summary)
Kraft Heinz Co., profitability 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), S-4/A (reporting date: 2015-03-29).
The financial data exhibits notable trends in profitability and returns over the analyzed periods. Initial margins and returns demonstrate a general upward trajectory, followed by a pronounced decline, with a modest recovery towards the end of the timeline.
- Gross Profit Margin
- This margin starts in the low thirties percent range, increasing steadily from 31.42% to reach a peak of approximately 37.22% in December 2017. Subsequently, it experiences a gradual decline, falling to nearly 31.75% by March 2020, with minor fluctuations towards the end where it slightly recovers to 32.91%.
- Operating Profit Margin
- The operating margin shows a marked increase from 14.39% in April 2016 to a peak of 25.82% by December 2017, indicating improved operational efficiency or cost management. However, the margin then drastically deteriorates, turning deeply negative—down to approximately -46.09% by December 2019—before recovering somewhat to a positive 4.74% in June 2020.
- Net Profit Margin
- The net profit margin follows a similar pattern, rising from 3.46% in April 2016 to a significant spike of over 42% in December 2017. This surge suggests one or more extraordinary income events during this period. Thereafter, the margin collapses into large negative values, reaching nearly -43% by December 2019, with a partial rebound to a slightly negative value of -0.76% by June 2020.
- Return on Equity (ROE)
- ROE improves gradually from 1.1% in April 2016 to a peak around 16.77% at June 2018, indicating enhanced shareholder value creation during this period. Nonetheless, this is followed by a sharp decline into negative territory—approaching -21.53% by September 2019—signaling substantial losses or equity erosion. Towards June 2020, a recovery emerges, bringing ROE closer to neutral at -0.39%.
- Return on Assets (ROA)
- Consistent with other profitability measures, ROA increases from 0.52% in April 2016 to a high of 9.2% by June 2018, representing improved asset utilization. A reversal then occurs, with ROA dipping into negative values, about -10.75% in September 2019, followed by a return to nearly zero (-0.2%) by June 2020.
Overall, the trends indicate a period of improving profitability and efficiency culminating in late 2017 to mid-2018, succeeded by a severe downturn lasting through 2019. The deterioration across all margins and return metrics during this later period suggests significant operational or market challenges. The modest improvements in early 2020 may reflect initial stages of recovery or transitional dynamics. The extreme fluctuations, especially the unusually high net profit margins in late 2017 and large negative margins in subsequent periods, merit further investigation to identify underlying causes such as non-recurring items, restructuring costs, or external economic factors.
Return on Sales
Return on Investment
Gross Profit Margin
Kraft Heinz Co., gross profit margin 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 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), S-4/A (reporting date: 2015-03-29).
1 Q2 2020 Calculation
Gross profit margin = 100
× (Gross profitQ2 2020
+ Gross profitQ1 2020
+ Gross profitQ4 2019
+ Gross profitQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in both gross profit and net sales over the reported periods. Gross profit demonstrates some volatility, with an initial substantial increase observed from March 2015 through December 2015, peaking at 2,404 million US dollars. Following this peak, gross profit experiences fluctuations, displaying decreases and subsequent recoveries, culminating in a drop to 1,858 million US dollars by March 2020 before rising again to 2,452 million US dollars by June 2020.
Net sales follow a broadly similar pattern, exhibiting growth from March 2015 until December 2015, reaching a high of 7,124 million US dollars. Afterwards, net sales experience some declines and variations, stabilizing around a range of approximately 6,000 to 6,900 million US dollars. By June 2020, net sales stand at 6,648 million US dollars, reflecting moderate recovery from lower points encountered during the period.
The gross profit margin, which is only available starting from December 2015, shows a gradual but consistent decline over the timeline. Starting at a margin of 31.42% in December 2015, it increases somewhat to a peak of 37.22% in December 2017 but then trends downwards steadily, reaching approximately 31.75% in March 2020 before a slight improvement to 32.91% in June 2020. This downward trend suggests increasing cost pressures or changes in sales mix affecting profitability despite fluctuations in gross profit and net sales levels.
- Gross Profit
- Initial strong growth until late 2015, followed by fluctuating performance with a general downward tendency towards early 2020 and recovery by mid-2020.
- Net Sales
- Growth through 2015 with stabilization in mid to high 6,000 million US dollars thereafter, showing resilience but lacking strong upward momentum.
- Gross Profit Margin
- Early increase peaking in late 2017, then a persistent decline indicative of possible margin compression, with minor recovery by mid-2020.
Overall, the data suggests a period of growth followed by operational and market challenges impacting profitability. The trends point to a need for strategic focus on margin management despite stable sales performance in recent periods.
Operating Profit Margin
Kraft Heinz Co., operating profit margin 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 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating income (loss) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), S-4/A (reporting date: 2015-03-29).
1 Q2 2020 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2020
+ Operating income (loss)Q1 2020
+ Operating income (loss)Q4 2019
+ Operating income (loss)Q3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals various patterns and significant fluctuations over the reported quarters. There is a clear seasonal and cyclical pattern observable in the operating income (loss) and net sales figures, alongside notable volatility in profit margins particularly towards the end of the period.
- Operating Income (Loss)
- Operating income exhibits a general upward trend from the initial value of 509 million USD in March 2015, peaking at 1636 million USD in July 2016. Following this peak, the values fluctuate moderately until the end of 2018, with a significant decline observed in December 2018, marked by an unusual and drastic loss of -14,151 million USD. The subsequent quarters show recovery attempts with positive income values around 500 to 1,200 million USD. However, another sharp loss occurs in December 2019 and June 2020, recorded as -1,339 million USD.
- Net Sales
- Net sales remain relatively stable across the periods, oscillating between approximately 2,478 million USD and 7,124 million USD. Early 2015 quarters show lower sales values, which increase substantially in the quarters of late 2015, then stabilize with minor fluctuations through 2016 and 2017. From 2018 to mid-2020, net sales demonstrate slight decreases and recoveries but do not exhibit the extreme volatility found in operating income.
- Operating Profit Margin (%)
- The operating profit margin data is incomplete for early reports but starts at 14.39% in December 2015 and increases steadily, reaching a peak of about 25.82% at the end of 2017. After this peak, there is a gradual decline through 2018, followed by a marked collapse in margin figures to negative margins of up to -46.09% in December 2019. The margin somewhat rebounds in the early quarters of 2020, reaching 12.29% and 13.02%, albeit still significantly lower than prior peak levels.
Overall, the data indicates that the company experienced growth in profitability and stable sales up through 2017, followed by severe operational challenges reflected in massive operating losses and negative profit margins in late 2018 and 2019. Despite this, net sales remained comparatively steady, suggesting that the income and margin declines may relate to cost or expense issues rather than revenue shortfalls. The partial recovery of margins and income in early 2020 hints at ongoing efforts to stabilize financial performance.
Net Profit Margin
Kraft Heinz Co., net profit margin 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 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to Kraft Heinz | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), S-4/A (reporting date: 2015-03-29).
1 Q2 2020 Calculation
Net profit margin = 100
× (Net income (loss) attributable to Kraft HeinzQ2 2020
+ Net income (loss) attributable to Kraft HeinzQ1 2020
+ Net income (loss) attributable to Kraft HeinzQ4 2019
+ Net income (loss) attributable to Kraft HeinzQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations and trends in key performance indicators over the observed periods. The net income attributable to the company exhibits high volatility, with periods of both positive earnings and significant losses. Early in the timeline, net income starts modestly positive, then shifts to negative figures during 2015, before recovering and reaching peak levels by the end of 2017. This peak, however, is followed by a precipitous drop into large negative net income in late 2018, indicating a substantial financial impairment or extraordinary charge during this interval. Subsequent quarters show a return to smaller positive net income before another negative figure emerges in mid-2020.
Net sales figures demonstrate a pattern of relative stability, maintaining a range generally between approximately 6,000 million and 7,100 million US dollars per quarter. There are cyclical ups and downs but no significant long-term growth or decline is evident. The sales data does not reflect the same volatility seen in net income, suggesting that fluctuations in profitability are not driven solely by revenue changes but possibly by cost variations or non-operating items.
Regarding profitability margins, there is a clear increase in net profit margin from the period around 2015, rising progressively through 2017 to exceptionally high levels exceeding 40%, which aligns with the substantial one-time net income spike seen in 2017. Following this peak, profit margin plunges to large negative values in late 2018 and remains deeply negative through 2019, consistent with the net income losses. The margin then slightly recovers toward mid-2020 but remains around zero or negative levels, indicating ongoing challenges in achieving profitability despite stable sales.
- Net income trends
- Net income shows irregular patterns with a considerable peak in late 2017, followed by a significant loss in late 2018 and ongoing volatility thereafter.
- Sales stability
- Quarterly net sales remain relatively steady without marked growth, suggesting sales volume or pricing was stable, even while profits varied widely.
- Profit margin fluctuations
- The net profit margin experienced a sustained increase culminating in extremely high margins in 2017, correlating with the net income spike, before collapsing into deep losses and negative margins starting in late 2018.
- Overall insights
- The data indicates that the company faced a major financial event around late 2017 to late 2018, significantly impacting net income and profit margins, while net sales did not follow the same adverse trend, implying cost-related or exceptional items affected profitability.
Return on Equity (ROE)
Kraft Heinz Co., ROE 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 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to Kraft Heinz | |||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), S-4/A (reporting date: 2015-03-29).
1 Q2 2020 Calculation
ROE = 100
× (Net income (loss) attributable to Kraft HeinzQ2 2020
+ Net income (loss) attributable to Kraft HeinzQ1 2020
+ Net income (loss) attributable to Kraft HeinzQ4 2019
+ Net income (loss) attributable to Kraft HeinzQ3 2019)
÷ Shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in net income attributable to the company over the observed periods. The net income shows a pattern of volatility, with several quarters experiencing losses followed by substantial gains. For instance, there is a significant positive spike in net income in the quarter ending December 30, 2017, reaching 8,003 million US dollars, contrasting sharply with a deep loss of -12,568 million US dollars in the quarter ending December 29, 2018. Following this loss, net income recovers to positive territory but remains unstable through the subsequent quarters.
Shareholders' equity demonstrates relative stability with gradual changes over time but shows a distinct decline from the end of 2018 into 2020. Equity peaks around the quarter ending December 30, 2017, before trending downward from 66,034 million US dollars towards 49,040 million US dollars by the quarter ending June 27, 2020. This decline may suggest distribution of dividends, share buybacks, losses, or other equity-related adjustments impacting the company's net asset base.
Return on Equity (ROE) exhibits high variability consistent with the fluctuations in net income and shareholders' equity. Early before 2015 and initial quarters, no ROE values are reported. Subsequently, ROE increments methodically, reaching a peak around 16.77% in the quarter ending June 30, 2018, indicating improved profitability relative to equity. However, there is a sharp reversal entering 2019 where ROE plunges to approximately -20% for multiple quarters, signifying negative returns during these periods of loss. By 2020, ROE stabilizes somewhat but remains close to zero, reflecting minimal return on shareholders' investments.
Overall, the data indicates a period of significant financial volatility reflected in profit variations and negative returns in recent years, accompanied by a reduction in shareholders’ equity. The sharp negative earnings and associated equity decline from late 2018 onward mark a critical phase of financial distress or restructuring. The return on equity mirrors this volatility, confirming challenges in maintaining profitability and generating value for shareholders during this timeframe.
- Net Income Trend
- Highly volatile with significant swings from large profits to deep losses, especially notable large loss in late 2018.
- Shareholders’ Equity Trend
- Generally stable with peaks in late 2017, followed by a steady decline into mid-2020.
- Return on Equity (ROE) Trend
- Progressive increase to a peak in mid-2018, then a steep decline into negative territory in 2019, with marginal recovery but remaining near zero by 2020.
- Implications
- Financial performance disruptions in recent periods indicate operational or non-operational challenges adversely affecting profitability and equity base, requiring attention to restore stable shareholder returns.
Return on Assets (ROA)
Kraft Heinz Co., ROA 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 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to Kraft Heinz | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), S-4/A (reporting date: 2015-03-29).
1 Q2 2020 Calculation
ROA = 100
× (Net income (loss) attributable to Kraft HeinzQ2 2020
+ Net income (loss) attributable to Kraft HeinzQ1 2020
+ Net income (loss) attributable to Kraft HeinzQ4 2019
+ Net income (loss) attributable to Kraft HeinzQ3 2019)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in net income (loss) and return on assets (ROA) across the observed quarters.
- Net Income (Loss) Trends
- Net income exhibits significant volatility, with periods of both positive earnings and losses. Initially, the company experiences modest profitability with a net income of 276 million USD in the first quarter of 2015, followed by two consecutive quarters of losses, with the lowest recorded at -164 million USD and -123 million USD. From the fourth quarter of 2015 through early 2017, net income improves substantially, peaking at 1159 million USD in the third quarter of 2017.
- A remarkable spike occurs in the fourth quarter of 2017, where net income surges to an outstanding 8003 million USD, likely due to a one-time event or adjustment. Following this peak, earnings normalize, maintaining positive but lower values until the fourth quarter of 2018, when a sharp decline is observed with a significant loss of -12568 million USD.
- Subsequent quarters show recovery attempts with fluctuating positive net incomes; however, losses recur in the final quarter of the data set with -1651 million USD, indicating ongoing volatility and potential instability in profitability.
- Total Assets
- Total assets demonstrate relative stability in the earlier periods around 120 billion USD, with a large anomaly in the third quarter of 2015 reflecting a jump to 121,792 million USD from 36,293 million USD previously, possibly indicative of a reclassification or major acquisition.
- Following that, assets hover near the 120 billion USD range before experiencing a decline starting in the first quarter of 2019, reducing steadily from approximately 120 billion USD to under 100 billion USD by mid-2020, indicating asset shrinkage or divestitures.
- Return on Assets (ROA)
- ROA values begin being reported in the fourth quarter of 2015, showing an upward trend from 0.52% to a peak of 9.20% in the fourth quarter of 2017, closely mirroring the spike in net income for the same period. This suggests improved efficiency or a strong one-time gain improving asset returns.
- After this peak, ROA declines drastically into negative territory starting in early 2019 with values as low as -10.75%, consistent with the major net losses reported. A slight recovery is noted by mid-2020, with ROA returning to near zero but remaining negative at -0.2%, indicative of marginal operational challenges impacting profitability relative to asset base.
Overall, the data portrays a period of substantial financial disruptions marked by extreme profitability swings and asset valuation adjustments. The company's operational efficiency, as measured by ROA, reflects these swings, confirming that the large net income variations have had a direct impact on return metrics. The asset base remains largely consistent initially but faces reductions towards the end of the period, possibly reflecting strategic repositioning or financial pressures.