Kraft Heinz Co (KHC)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,855,000	2,363,000	1,012,000	356,000	1,935,000
Total stockholders’ equity	US$ in thousands	49,526,000	48,678,000	49,298,000	50,103,000	51,623,000
ROE		5.76%	4.85%	2.05%	0.71%	3.75%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,855,000K ÷ $49,526,000K
= 5.76%

The return on equity (ROE) of Kraft Heinz Co has shown a varied trend over the past five years. From 2019 to 2020, there was a notable decrease in ROE from 3.75% to 0.71%, indicating a decline in the company's profitability relative to shareholders' equity. However, in the subsequent years, there was a significant improvement in ROE.

The ROE increased to 2.05% in 2021, further rising to 4.85% in 2022, and reaching 5.76% in 2023. This upward trend suggests that Kraft Heinz Co has been able to generate higher profits using the shareholders' equity invested in the company. An increasing ROE is generally seen as a positive sign, indicating better financial performance and efficiency in utilizing investor funds.

It is essential to closely monitor the factors driving this improvement in ROE to ensure its sustainability in the future. Additionally, comparing Kraft Heinz Co's ROE with industry averages and peer companies can provide further insights into its relative performance and competitiveness in the market.