Kraft Heinz Co (KHC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.77% | 31.55% | 37.37% | 37.25% | 33.89% |
| Operating profit margin | 17.81% | 14.12% | 14.89% | 8.64% | 12.77% |
| Pretax margin | 14.19% | 11.50% | 7.30% | 4.16% | 11.08% |
| Net profit margin | 11.12% | 9.18% | 4.36% | 1.44% | 8.05% |
The profitability ratios of Kraft Heinz Co show a fluctuating trend over the past five years. The gross profit margin increased from 33.89% in 2019 to 37.37% in 2021, indicating an improvement in the company's ability to generate profit from its production activities. However, there was a slight decline to 31.55% in 2022 before rebounding to 34.77% in 2023.
The operating profit margin of Kraft Heinz Co has shown volatility, with fluctuations between 8.64% in 2020 to 17.81% in 2023. This indicates varying operational efficiency and cost management during the period under review.
The pretax margin demonstrates a similar trend, with significant improvements from 4.16% in 2020 to 14.19% in 2023. This suggests that the company has been able to manage its operating expenses and taxes more effectively over the years.
The net profit margin of Kraft Heinz Co also exhibits a fluctuating pattern, with a notable increase from 1.44% in 2020 to 11.12% in 2023. This indicates that the company has been able to enhance its bottom line profitability by improving cost controls and operational efficiency.
Overall, the profitability ratios of Kraft Heinz Co have shown mixed results, with fluctuations in each margin over the years. It is essential for the company to consistently focus on optimizing its operations and cost management to sustain and improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.06% | 4.01% | 3.70% | 2.13% | 3.03% |
| Return on assets (ROA) | 3.16% | 2.61% | 1.08% | 0.36% | 1.91% |
| Return on total capital | 9.20% | 7.97% | 7.59% | 4.83% | 7.79% |
| Return on equity (ROE) | 5.76% | 4.85% | 2.05% | 0.71% | 3.75% |
The profitability ratios of Kraft Heinz Co have shown a positive trend over the past five years. The operating return on assets (Operating ROA) has steadily improved from 3.03% in 2019 to 5.06% in 2023, indicating that the company has become more efficient in generating operating profits from its assets.
Similarly, the return on assets (ROA) has shown an upward trajectory, from 0.36% in 2020 to 3.16% in 2023, reflecting an improvement in the company's overall ability to generate profits from its total assets.
The return on total capital has also demonstrated consistent growth, reaching 9.20% in 2023, compared to 7.79% in 2019. This indicates that Kraft Heinz Co has been able to generate higher returns on the total capital employed in its operations over the years.
Lastly, the return on equity (ROE) has exhibited a positive trend, rising from 0.71% in 2020 to 5.76% in 2023, signaling an improvement in the company's profitability from the perspective of its equity shareholders.
Overall, the profitability ratios of Kraft Heinz Co show a positive performance, reflecting an upward trajectory in the company's ability to generate profits relative to its assets, capital, and equity over the past five years.