Kraft Heinz Co (KHC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,766,000 | 2,957,000 | 3,706,000 | 4,529,000 | 4,554,000 | 4,646,000 | 4,720,000 | 3,951,000 | 3,882,000 | 2,693,000 | 3,214,000 | 3,837,000 | 3,743,000 | 5,273,000 | 5,201,000 | 2,685,000 | 2,419,000 | 1,459,000 | 1,801,000 | 3,929,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 49,185,000 | 48,328,000 | 48,895,000 | 49,522,000 | 49,526,000 | 49,276,000 | 49,814,000 | 49,153,000 | 48,678,000 | 48,148,000 | 48,796,000 | 49,644,000 | 49,298,000 | 50,089,000 | 49,997,000 | 50,288,000 | 50,103,000 | 49,218,000 | 49,040,000 | 51,009,000 |
| Return on total capital | 3.59% | 6.12% | 7.58% | 9.15% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,766,000K ÷ ($—K + $49,185,000K)
= 3.59%
Kraft Heinz Co's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital decreased from 7.70% on March 31, 2020, to 2.96% on September 30, 2020. However, there was a subsequent increase in the metric to 10.53% by September 30, 2021, indicating improvement in the utilization of both debt and equity capital.
After reaching its peak at 10.53% in September 2021, the return on total capital fluctuated between 5.59% and 9.48% until June 30, 2023. Notably, there was a sustained period of relatively high returns above 9% from March 31, 2023, to June 30, 2024.
The metric declined to 3.59% by December 31, 2024, signaling a decrease in the efficiency of utilizing total capital. Overall, the return on total capital for Kraft Heinz Co exhibited variability throughout the period, reflecting the company's ability to generate profits relative to the total capital employed, with both positive and negative trends observed over time.
Peer comparison
Dec 31, 2024