Kraft Heinz Co (KHC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.77% | 34.77% | 31.55% | 37.37% | 37.25% |
| Operating profit margin | 6.52% | 17.81% | 14.12% | 14.89% | 8.64% |
| Pretax margin | 3.31% | 14.19% | 11.50% | 7.30% | 4.16% |
| Net profit margin | 10.64% | 11.12% | 9.18% | 4.36% | 1.44% |
Kraft Heinz Co's profitability ratios demonstrate fluctuations over the years. The gross profit margin has shown a steady increase from 37.25% in 2020 to 34.77% in 2023, before slightly rebounding to 34.77% in 2024. This indicates the company's ability to control its production costs and generate profits from sales.
The operating profit margin saw a significant improvement, rising from 8.64% in 2020 to 17.81% in 2023, before declining to 6.52% in 2024. This suggests that Kraft Heinz managed its operating expenses effectively during the period but faced challenges impacting profitability in 2024.
The pretax margin reflects the company's ability to generate profits before accounting for taxes. It experienced an upward trend from 4.16% in 2020 to 14.19% in 2023, before dropping to 3.31% in 2024. This fluctuation may indicate changes in the company's tax strategies or other factors influencing pre-tax profitability.
The net profit margin, which represents the company's bottom-line profitability after all expenses are deducted, increased from 1.44% in 2020 to 11.12% in 2023, and then remained relatively stable at 10.64% in 2024. This stability suggests Kraft Heinz maintained its profitability despite challenges in the operating and pre-tax margins in 2024.
Overall, while there have been fluctuations in profitability ratios, Kraft Heinz Co has shown resilience in maintaining its net profit margin, indicating its ability to manage costs effectively and generate profits consistently over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.91% | 5.06% | 4.01% | 3.70% | 2.13% |
| Return on assets (ROA) | 3.11% | 3.16% | 2.61% | 1.08% | 0.36% |
| Return on total capital | 3.59% | 9.20% | 7.97% | 7.59% | 4.83% |
| Return on equity (ROE) | 5.58% | 5.76% | 4.85% | 2.05% | 0.71% |
Profitability ratios for Kraft Heinz Co have shown a positive trend over the last five years, indicating an improving performance in generating profits relative to its assets and capital.
- Operating return on assets (Operating ROA) has increased steadily from 2.13% in December 2020 to 5.06% in December 2023 before dropping slightly to 1.91% in December 2024. This ratio measures the company's ability to generate operating income from its assets, showing an overall positive trend.
- Return on assets (ROA) has also shown a consistent upward trajectory, rising from 0.36% in December 2020 to 3.11% in December 2024. This ratio reflects the company's profitability in relation to its total assets, demonstrating an improving performance in utilizing its assets efficiently.
- Return on total capital has generally increased from 4.83% in December 2020 to 9.20% in December 2023, but experienced a decrease to 3.59% in December 2024. This ratio evaluates the company's ability to generate returns from its total capital, including debt and equity, showcasing a positive trend overall.
- Return on equity (ROE) has also exhibited a rising trend, climbing from 0.71% in December 2020 to 5.58% in December 2024. ROE measures the company's profitability based on its shareholders' equity, highlighting an improving performance in generating returns for equity holders.
Overall, Kraft Heinz Co has shown favorable profitability ratios, indicating an increasing ability to generate profits in relation to its assets, capital, and equity over the analyzed period.