Kraft Heinz Co (KHC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.46% | 34.01% | 32.49% | 31.47% | 31.57% | 33.10% | 34.53% | 36.51% | 37.42% | 36.37% | 37.43% | 37.82% | 36.66% | 35.55% | 34.48% | 33.06% | 33.66% | 34.08% | 34.17% | 34.88% |
| Operating profit margin | 17.65% | 17.05% | 17.40% | 14.26% | 14.12% | 9.98% | 11.90% | 15.13% | 14.91% | 20.23% | 20.08% | 9.72% | 8.50% | 4.76% | 4.97% | 13.56% | 12.68% | -48.14% | -47.85% | -44.83% |
| Pretax margin | 14.06% | 14.20% | 14.46% | 11.54% | 11.51% | 5.79% | 7.32% | 8.52% | 7.31% | 14.08% | 14.12% | 4.71% | 4.09% | 0.27% | 1.34% | 10.67% | 11.00% | -49.86% | -50.51% | -47.92% |
| Net profit margin | 11.02% | 11.32% | 11.96% | 9.18% | 9.18% | 5.08% | 6.46% | 5.32% | 4.36% | 9.25% | 8.66% | 2.15% | 1.42% | -2.00% | -0.79% | 7.89% | 8.00% | -44.65% | -45.12% | -43.41% |
The profitability ratios of Kraft Heinz Co have shown fluctuations over the past few quarters.
The gross profit margin has ranged between 31.47% to 37.82% over the last two years, indicating some volatility in the company's ability to generate profits after deducting the cost of goods sold.
The operating profit margin has fluctuated between 4.76% to 20.23% over the same period, with a significant decline seen in the last quarter of 2021 compared to the previous year.
The pretax margin has varied between 0.27% to 14.46%, with a notable decrease in profitability towards the end of 2021 compared to the previous years.
The net profit margin has also experienced fluctuations, ranging from -2.00% to 11.96% over the past two years, showing some instability in the company's ability to control expenses and generate profits after all costs have been accounted for.
Overall, while Kraft Heinz Co has maintained positive profitability margins, there have been ups and downs in its financial performance over the analyzed period. It is crucial for the company to focus on stabilizing and potentially improving its profit margins to ensure long-term financial sustainability.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.06% | 5.02% | 5.05% | 4.14% | 4.01% | 2.65% | 3.05% | 3.71% | 3.70% | 5.30% | 5.17% | 2.48% | 2.13% | 1.19% | 1.23% | 3.15% | 3.03% | -11.34% | -11.40% | -10.76% |
| Return on assets (ROA) | 3.16% | 3.33% | 3.47% | 2.66% | 2.61% | 1.35% | 1.65% | 1.31% | 1.08% | 2.42% | 2.23% | 0.55% | 0.36% | -0.50% | -0.20% | 1.83% | 1.91% | -10.52% | -10.75% | -10.42% |
| Return on total capital | 9.20% | 9.43% | 9.48% | 8.04% | 7.97% | 5.59% | 6.59% | 7.73% | 7.59% | 10.53% | 10.40% | 5.34% | 4.83% | 2.96% | 3.67% | 7.70% | 7.79% | -20.74% | -21.60% | -20.54% |
| Return on equity (ROE) | 5.76% | 6.06% | 6.34% | 4.93% | 4.85% | 2.53% | 3.11% | 2.47% | 2.05% | 4.59% | 4.33% | 1.08% | 0.71% | -1.00% | -0.39% | 3.74% | 3.75% | -20.93% | -21.53% | -20.87% |
Based on the profitability ratios of Kraft Heinz Co over the past several quarters, there are some notable trends to observe:
1. Operating Return on Assets (Operating ROA): This ratio measures the efficiency of the company in generating operating income from its assets. Kraft Heinz Co has shown a consistent improvement in its operating ROA over the recent quarters, with a slight dip in the most recent period but still maintaining a relatively stable level above 5%.
2. Return on Assets (ROA): ROA indicates how efficiently the company is utilizing its assets to generate profit. Kraft Heinz Co has also exhibited an increasing trend in ROA, suggesting a better utilization of assets to generate profit. However, the ratio fluctuates quarter by quarter, with the latest quarter showing a slight decline from the previous quarter.
3. Return on Total Capital: This ratio reflects the overall return generated from all sources of capital, including both equity and debt. Kraft Heinz Co has shown a steady improvement in its return on total capital, indicating the effectiveness of the company in generating returns for its providers of capital. The most recent quarter saw a notable increase in this ratio compared to the earlier quarters.
4. Return on Equity (ROE): ROE measures the company's profitability in relation to shareholders' equity. Kraft Heinz Co has experienced an upward trend in ROE, indicating an improvement in profitability in relation to shareholders' investment. Despite fluctuations, the company has managed to enhance its ROE over time, with the most recent quarter showing a slight increase.
In conclusion, Kraft Heinz Co has demonstrated an overall positive trajectory in its profitability ratios, showcasing improved efficiency in generating returns for both asset providers and equity investors. The company's focus on optimizing operations and capital allocation seems to be positively impacting its financial performance.