Kraft Heinz Co (KHC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,572,000 | 3,634,000 | 3,460,000 | 2,128,000 | 3,070,000 |
| Total assets | US$ in thousands | 90,339,000 | 90,513,000 | 93,394,000 | 99,830,000 | 101,450,000 |
| Operating ROA | 5.06% | 4.01% | 3.70% | 2.13% | 3.03% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,572,000K ÷ $90,339,000K
= 5.06%
Operating Return on Assets (Operating ROA) is a crucial financial ratio that indicates how efficiently a company generates profits from its assets used in its core operations. The trend analysis of Kraft Heinz Co's Operating ROA over the past five years shows a gradual improvement. From 2019 to 2020, there was a significant increase in Operating ROA from 3.03% to 5.06%, indicating a substantial improvement in the company's operational efficiency in generating profits from its assets.
However, in the following years, the Operating ROA slightly decreased to 4.01% in 2022 and further to 3.70% in 2021. This decrease could be attributed to various factors such as increased operational expenses, changes in the pricing strategy, or market conditions affecting profitability.
Overall, despite the fluctuations in the Operating ROA, the trend indicates that Kraft Heinz Co has been able to enhance its operational efficiency in generating returns from its assets over the years. It is essential for the company to continue monitoring and analyzing this ratio to ensure continuous improvement in operational performance and profitability.
Peer comparison
Dec 31, 2023