Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Kraft Heinz Co., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Kraft Heinz Co. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Kraft Heinz Co. operating profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Kraft Heinz Co. net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Kraft Heinz Co. ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Kraft Heinz Co. ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Gross Profit Margin
Kraft Heinz Co., gross profit margin calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 8,147) | 8,921) | 9,703) | 9,586) | 5,761) | |
| Net sales | 24,977) | 26,268) | 26,232) | 26,487) | 18,338) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 32.62% | 33.96% | 36.99% | 36.19% | 31.42% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 50.62% | — | — | — | — | |
| Coca-Cola Co. | 60.77% | — | — | — | — | |
| PepsiCo Inc. | 55.13% | — | — | — | — | |
| Philip Morris International Inc. | 64.73% | — | — | — | — | |
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 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 8,147 ÷ 24,977 = 32.62%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Kraft Heinz Co. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
Kraft Heinz Co., operating profit margin calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 3,070) | (10,220) | 6,773) | 6,142) | 2,639) | |
| Net sales | 24,977) | 26,268) | 26,232) | 26,487) | 18,338) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 12.29% | -38.91% | 25.82% | 23.19% | 14.39% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 41.12% | — | — | — | — | |
| Coca-Cola Co. | 27.06% | — | — | — | — | |
| PepsiCo Inc. | 15.32% | — | — | — | — | |
| Philip Morris International Inc. | 35.33% | — | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 25.88% | — | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 8.07% | — | — | — | — | |
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 2019 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 3,070 ÷ 24,977 = 12.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Kraft Heinz Co. operating profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Net Profit Margin
Kraft Heinz Co., net profit margin calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Kraft Heinz | 1,935) | (10,192) | 10,999) | 3,632) | 634) | |
| Net sales | 24,977) | 26,268) | 26,232) | 26,487) | 18,338) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 7.75% | -38.80% | 41.93% | 13.71% | 3.46% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | -5.15% | — | — | — | — | |
| Coca-Cola Co. | 23.94% | — | — | — | — | |
| PepsiCo Inc. | 10.89% | — | — | — | — | |
| Philip Morris International Inc. | 24.11% | — | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 13.89% | — | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 4.14% | — | — | — | — | |
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 2019 Calculation
Net profit margin = 100 × Net income (loss) attributable to Kraft Heinz ÷ Net sales
= 100 × 1,935 ÷ 24,977 = 7.75%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Kraft Heinz Co. net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Return on Equity (ROE)
Kraft Heinz Co., ROE calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Kraft Heinz | 1,935) | (10,192) | 10,999) | 3,632) | 634) | |
| Shareholders’ equity | 51,623) | 51,657) | 66,034) | 57,358) | 57,685) | |
| Profitability Ratio | ||||||
| ROE1 | 3.75% | -19.73% | 16.66% | 6.33% | 1.10% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Altria Group Inc. | -20.78% | — | — | — | — | |
| Coca-Cola Co. | 46.99% | — | — | — | — | |
| PepsiCo Inc. | 49.47% | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 77.88% | — | — | — | — | |
| ROE, Industry | ||||||
| Consumer Staples | 22.58% | — | — | — | — | |
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 2019 Calculation
ROE = 100 × Net income (loss) attributable to Kraft Heinz ÷ Shareholders’ equity
= 100 × 1,935 ÷ 51,623 = 3.75%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Kraft Heinz Co. ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Return on Assets (ROA)
Kraft Heinz Co., ROA calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Kraft Heinz | 1,935) | (10,192) | 10,999) | 3,632) | 634) | |
| Total assets | 101,450) | 103,461) | 120,232) | 120,480) | 122,973) | |
| Profitability Ratio | ||||||
| ROA1 | 1.91% | -9.85% | 9.15% | 3.01% | 0.52% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Altria Group Inc. | -2.62% | — | — | — | — | |
| Coca-Cola Co. | 10.33% | — | — | — | — | |
| PepsiCo Inc. | 9.31% | — | — | — | — | |
| Philip Morris International Inc. | 16.76% | — | — | — | — | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 8.61% | — | — | — | — | |
| ROA, Industry | ||||||
| Consumer Staples | 5.91% | — | — | — | — | |
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 2019 Calculation
ROA = 100 × Net income (loss) attributable to Kraft Heinz ÷ Total assets
= 100 × 1,935 ÷ 101,450 = 1.91%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Kraft Heinz Co. ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |