Stock Analysis on Net

Kraft Heinz Co. (NASDAQ:KHC)

This company has been moved to the archive! The financial data has not been updated since July 31, 2020.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Kraft Heinz Co., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,719 (11,194) 5,287 4,237 1,418
Invested capital2 94,307 96,541 112,007 111,350 105,133
Performance Ratio
ROIC3 2.88% -11.59% 4.72% 3.81% 1.35%
Benchmarks
ROIC, Competitors4
Altria Group Inc. -1.13%
Coca-Cola Co. 11.99%
PepsiCo Inc. 14.37%
Philip Morris International Inc. 26.60%

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 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,719 ÷ 94,307 = 2.88%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Kraft Heinz Co. ROIC deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Decomposition of ROIC

Kraft Heinz Co., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 28, 2019 2.88% = 16.14% × 0.26 × 67.46%
Dec 29, 2018 -11.59% = -38.13% × 0.27 × 100.00%
Dec 30, 2017 4.72% = 25.67% × 0.23 × 78.50%
Dec 31, 2016 3.81% = 22.85% × 0.24 × 70.00%
Dec 31, 2015 1.35% = 14.04% × 0.17 × 55.07%

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »


Operating Profit Margin (OPM)

Kraft Heinz Co., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,719 (11,194) 5,287 4,237 1,418
Add: Cash operating taxes2 1,312 1,177 1,448 1,815 1,157
Net operating profit before taxes (NOPBT) 4,031 (10,016) 6,735 6,053 2,576
 
Net sales 24,977 26,268 26,232 26,487 18,338
Profitability Ratio
OPM3 16.14% -38.13% 25.67% 22.85% 14.04%
Benchmarks
OPM, Competitors4
Altria Group Inc. 7.75%
Coca-Cola Co. 29.41%
PepsiCo Inc. 15.55%
Philip Morris International Inc. 36.52%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 4,031 ÷ 24,977 = 16.14%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Kraft Heinz Co. OPM deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Turnover of Capital (TO)

Kraft Heinz Co., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net sales 24,977 26,268 26,232 26,487 18,338
Invested capital1 94,307 96,541 112,007 111,350 105,133
Efficiency Ratio
TO2 0.26 0.27 0.23 0.24 0.17
Benchmarks
TO, Competitors3
Altria Group Inc. 0.59
Coca-Cola Co. 0.51
PepsiCo Inc. 1.13
Philip Morris International Inc. 0.95

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 Invested capital. See details »

2 2019 Calculation
TO = Net sales ÷ Invested capital
= 24,977 ÷ 94,307 = 0.26

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Kraft Heinz Co. TO improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Effective Cash Tax Rate (CTR)

Kraft Heinz Co., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,719 (11,194) 5,287 4,237 1,418
Add: Cash operating taxes2 1,312 1,177 1,448 1,815 1,157
Net operating profit before taxes (NOPBT) 4,031 (10,016) 6,735 6,053 2,576
Tax Rate
CTR3 32.54% 21.50% 30.00% 44.93%
Benchmarks
CTR, Competitors4
Altria Group Inc. 124.76%
Coca-Cola Co. 19.32%
PepsiCo Inc. 18.26%
Philip Morris International Inc. 23.53%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,312 ÷ 4,031 = 32.54%

4 Click competitor name to see calculations.