Kraft Heinz Co. (NASDAQ:KHC)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows data starting from the period ending December 31, 2015. Initially, the ratio increases from 2.81 to a peak of 4.14 by October 2, 2016, indicating improved efficiency in generating sales from fixed assets during this period. Following this peak, there is a gradual decline through 2017, reaching 3.6 by June 30, 2018. From the latter half of 2018 onwards, the ratio stabilizes in the range of approximately 3.6 to 3.7, with minor fluctuations. Towards mid-2020, the turnover ratio rises slightly again, ending at 3.75. This trend suggests a period of rising asset utilization efficiency initially, followed by stabilization at a moderately lower level.

Total Asset Turnover

The total asset turnover ratio begins reporting from December 31, 2015, at 0.15. The ratio shows a steady increase, reaching 0.22 by December 31, 2016, and maintaining that level through much of 2017 and the first half of 2018. There is a slight dip to 0.21 in March 31, 2018, but it quickly rebounds and rises to 0.25 by March 30, 2019. This higher level of 0.25 is maintained consistently through the end of 2019 and into 2020, with minor variation. The overall trend indicates a gradual improvement in the company’s ability to generate sales from its total assets over the observed periods.

Equity Turnover

Equity turnover data start from March 29, 2015, with a value of 0.32. The ratio improves steadily, peaking at 0.46 between September 27, 2015, and December 31, 2016, maintaining relative stability in that range. Subsequently, the ratio declines to approximately 0.4 through most of 2017 and the first half of 2018, suggesting a reduced turnover of equity during this period. From March 30, 2019, onward, the equity turnover rises again, reaching a peak of 0.52 by June 27, 2020. This late-period increase indicates enhanced efficiency in utilizing equity for sales generation, following a dip in prior years.

The analysis of the quarterly financial data reveals several notable trends in sales, asset holdings, and asset utilization over the examined periods.

Net Sales

Net sales show a fluctuating but overall stable pattern across the quarters. Starting at 2,478 million USD in the first quarter of 2015, sales increased steadily to peaks above 6,800 million USD towards the end of 2015 and 2017. Throughout 2016 to 2020, sales oscillated around an average range of approximately 6,000 to 6,900 million USD, with occasional declines especially noticeable in early 2019 and during mid-2020. The latest figures, around mid-2020, remain consistent with prior quarters, suggesting resilience despite some volatility.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment presents a growth trend initially, rising from about 2,266 million USD in early 2015 to levels exceeding 7,000 million USD from late 2017 onward. This substantial increase appears to reflect significant capital investment or acquisitions during this period. However, starting from late 2018, the net value marginally declines, indicating possible asset disposals, depreciation, or revaluation. The asset base remains relatively stable but shows a slight decreasing trend towards mid-2020.

Net Fixed Asset Turnover Ratio

This ratio, indicating how efficiently fixed assets generate sales, became available from late 2015 onward. It peaked at 4.14 in October 2016, suggesting high efficiency, and then generally trended downward to a level near 3.5 by early 2020. Minor fluctuations around the 3.6–3.7 range occur throughout 2018 to 2020, reflecting moderate stability in asset utilization. The gradual decline over the entire period hints at either growing asset bases not matched by sales increases or diminished efficiency in asset use.

Overall, the data indicates stable sales performance amid considerable growth and later slight reduction in fixed assets. The asset turnover ratio suggests moderate efficiency with a downward trend, implying that the company’s increased investment in property, plant, and equipment over time has not proportionally enhanced sales revenue. This may merit further review to optimize asset deployment or assess capital expenditure effectiveness.

The data shows variations and trends in net sales, total assets, and total asset turnover ratio over several quarterly periods. The analysis focuses on changes observed from the first quarter of 2015 through the second quarter of 2020.

Net Sales

Net sales generally exhibit a seasonal fluctuation pattern with peaks often occurring in the fourth quarters of each year. Values range from a low around 2,478 million USD in Q1 2015 to highs exceeding 6,800 million USD in Q4 2016 and 2018. Despite quarter-to-quarter volatility, net sales seem relatively stable across years, with some fluctuations that may correspond to market conditions or company performance. The trend, however, does not show a clear, consistent growth or decline over the entire period.

Total Assets

The total assets reported show a marked increase from Q1 2015 to Q1 2016, jumping from approximately 36,293 million USD to over 123,000 million USD by early 2016. This significant rise likely reflects an event such as an acquisition or major asset revaluation. Following this peak, total assets remain relatively stable but trending slightly downward over the following years, declining gradually from about 123,273 million USD in Q2 2016 to approximately 98,306 million USD by Q2 2020. This indicates some asset reductions or divestitures over time.

Total Asset Turnover Ratio

This ratio, a measure of efficiency in utilizing assets to generate sales, is only available from Q4 2015 onwards. The ratio initially shows a gradual increase from 0.15 to about 0.25 by end of 2018. From there, it remains relatively steady in the range of 0.24 to 0.26, suggesting that the company's ability to generate sales from its assets improved in the first years post-2015 and then stabilized. This indicates better asset utilization efficiency despite fluctuations in sales and assets.

The data reflect multiple financial metrics over a series of quarterly periods, with a focus on net sales, shareholders’ equity, and equity turnover ratio.

Net Sales

Net sales exhibit fluctuations throughout the quarters. Initial figures show moderate levels around $2,400 million to $2,600 million in the first two quarters of 2015. Subsequently, there is a significant increase to over $6,000 million in the third and fourth quarters of 2015. Afterward, sales tend to oscillate, showing declines and recoveries within the $6,000 million to $7,100 million range. The later periods from early 2017 through mid-2020 demonstrate relatively stable sales, largely maintaining above the $6,000 million threshold with periodic minor fluctuations, indicating some level of steady demand or market presence.

Shareholders’ Equity

Shareholders’ equity reveals a notable jump from approximately $6,800 million in early 2015 to a peak near $58,800 million starting in the third quarter of 2015, where it remains relatively stable through 2017. A substantial increase occurs by the end of 2017 with values around $66,000 million, followed by a marked decrease beginning in early 2019, descending steadily to about $49,000 million by mid-2020. This downward trend in shareholders’ equity in the final periods points to possible corporate restructuring, asset write-downs, increased liabilities, or other equity-reducing events.

Equity Turnover Ratio

The equity turnover ratio, reported from late 2015 onward, starts at approximately 0.32 and increases steadily through 2016 and 2017, stabilizing around 0.45 to 0.46. From 2018 forward, the ratio hovers near 0.4 before rising again to about 0.5 in 2019 and 2020. This upward trend suggests improved efficiency in generating sales relative to equity value in recent periods, despite the declining shareholders’ equity. The ratio’s increase toward the end of the observed timeframe may indicate efforts to optimize asset utilization or revenue generation in the face of decreasing equity.