Kraft Heinz Co (KHC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,744,000 | 2,855,000 | 2,363,000 | 1,012,000 | 356,000 |
| Total stockholders’ equity | US$ in thousands | 49,185,000 | 49,526,000 | 48,678,000 | 49,298,000 | 50,103,000 |
| ROE | 5.58% | 5.76% | 4.85% | 2.05% | 0.71% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,744,000K ÷ $49,185,000K
= 5.58%
Based on the data provided, Kraft Heinz Co's return on equity (ROE) has shown an increasing trend over the years. As of December 31, 2020, the ROE was 0.71%, indicating a relatively low return on the shareholders' equity. However, there has been a significant improvement in subsequent years, with the ROE increasing to 2.05% as of December 31, 2021, 4.85% as of December 31, 2022, 5.76% as of December 31, 2023, and then slightly dropping to 5.58% as of December 31, 2024.
The increasing trend in ROE suggests that Kraft Heinz Co has been able to generate higher profits relative to its shareholders' equity over time, reflecting improved efficiency in utilizing shareholder funds to generate earnings. However, it is important to note that the ROE figures are relatively low, indicating that there may still be room for further improvement in maximizing shareholder value through more effective management of resources and profitability.
Peer comparison
Dec 31, 2024