Kraft Heinz Co (KHC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,766,000 | 4,554,000 | 3,882,000 | 3,743,000 | 2,419,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 49,185,000 | 49,526,000 | 48,678,000 | 49,298,000 | 50,103,000 |
| Return on total capital | 3.59% | 9.20% | 7.97% | 7.59% | 4.83% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,766,000K ÷ ($—K + $49,185,000K)
= 3.59%
The return on total capital for Kraft Heinz Co has shown variability over the past five years. The ratio started at 4.83% in December 2020 and experienced an increase to 7.59% by December 2021. Subsequently, there was a further improvement to 7.97% by December 2022. The return on total capital reached its peak at 9.20% by December 2023, indicating a positive trend in the company's ability to generate returns from its total capital. However, there was a notable decline in the ratio to 3.59% by December 2024.
It is important for stakeholders to assess the factors contributing to these fluctuations in return on total capital and monitor any potential impacts on the company's financial performance and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2024