Stock Analysis on Net
Stock Analysis on Net

Kraft Foods Group Inc. (NASDAQ:KRFT)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 28, 2015.

Economic Value Added (EVA)

Microsoft Excel

EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

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Economic Profit

Kraft Foods Group Inc., economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Net operating profit after taxes (NOPAT)1
Cost of capital2
Invested capital3
 
Economic profit4

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2014 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Kraft Foods Group Inc. economic profit increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

Net Operating Profit after Taxes (NOPAT)

Kraft Foods Group Inc., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Net earnings
Deferred income tax expense (benefit)1
Increase (decrease) in allowances related to accounts receivable2
Increase (decrease) in restructuring costs liability3
Increase (decrease) in equity equivalents4
Interest and other expense, net
Interest expense, operating lease liability5
Adjusted interest and other expense, net
Tax benefit of interest and other expense, net6
Adjusted interest and other expense, net, after taxes7
Net operating profit after taxes (NOPAT)

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in allowances related to accounts receivable.

3 Addition of increase (decrease) in restructuring costs liability.

4 Addition of increase (decrease) in equity equivalents to net earnings.

5 2014 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =

6 2014 Calculation
Tax benefit of interest and other expense, net = Adjusted interest and other expense, net × Statutory income tax rate
= × 35.00% =

7 Addition of after taxes interest expense to net earnings.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. Kraft Foods Group Inc. NOPAT increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

Cash Operating Taxes

Kraft Foods Group Inc., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Provision for income taxes
Less: Deferred income tax expense (benefit)
Add: Tax savings from interest and other expense, net
Cash operating taxes

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. Kraft Foods Group Inc. cash operating taxes increased from 2012 to 2013 and from 2013 to 2014.

Invested Capital

Kraft Foods Group Inc., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Current portion of long-term debt
Long-term debt, excluding current portion
Operating lease liability1
Total reported debt & leases
Equity
Net deferred tax (assets) liabilities2
Allowances related to accounts receivable3
Restructuring costs liability4
Equity equivalents5
Accumulated other comprehensive (income) loss, net of tax6
Adjusted equity
Construction in progress7
Invested capital

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of allowance for doubtful accounts receivable.

4 Addition of restructuring costs liability.

5 Addition of equity equivalents to equity.

6 Removal of accumulated other comprehensive income.

7 Subtraction of construction in progress.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. Kraft Foods Group Inc. invested capital increased from 2012 to 2013 but then slightly decreased from 2013 to 2014 not reaching 2012 level.

Cost of Capital

Kraft Foods Group Inc., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Debt3 ÷ = × × (1 – 35.00%) =
Operating lease liability4 ÷ = × × (1 – 35.00%) =
Total:

Based on: 10-K (reporting date: 2014-12-27).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Debt3 ÷ = × × (1 – 35.00%) =
Operating lease liability4 ÷ = × × (1 – 35.00%) =
Total:

Based on: 10-K (reporting date: 2013-12-28).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Debt3 ÷ = × × (1 – 35.00%) =
Operating lease liability4 ÷ = × × (1 – 35.00%) =
Total:

Based on: 10-K (reporting date: 2012-12-29).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Economic Spread Ratio

Kraft Foods Group Inc., economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Selected Financial Data (US$ in millions)
Economic profit1
Invested capital2
Performance Ratio
Economic spread ratio3
Benchmarks
Economic Spread Ratio, Competitors4
lululemon athletica inc.
Nike Inc.

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

1 Economic profit. See details »

2 Invested capital. See details »

3 2014 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. Kraft Foods Group Inc. economic spread ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

Economic Profit Margin

Kraft Foods Group Inc., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012
Selected Financial Data (US$ in millions)
Economic profit1
Net revenues
Performance Ratio
Economic profit margin2
Benchmarks
Economic Profit Margin, Competitors3
lululemon athletica inc.
Nike Inc.

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

1 Economic profit. See details »

2 2014 Calculation
Economic profit margin = 100 × Economic profit ÷ Net revenues
= 100 × ÷ =

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. Kraft Foods Group Inc. economic profit margin improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.