Kraft Heinz Co (KHC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 4,024,000 | -10,717,000 | -11,132,000 | -10,622,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 51,623,000 | 51,673,000 | 51,543,000 | 51,703,000 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,554,000K ÷ ($—K + $49,526,000K)
= 9.20%
The return on total capital for Kraft Heinz Co has shown fluctuations over the past few quarters. In the most recent quarter, ending December 31, 2023, the return on total capital was 9.20%, a slight decrease from the previous quarter's 9.43%. This indicates that the company generated a return of 9.20% on its total capital invested in the business.
Looking back over the past year, there was a noticeable improvement in return on total capital from the first quarter of 2022 to the second quarter of 2023, with a peak of 10.53% in the third quarter of 2021. However, there were periods of lower returns in the first and second quarters of 2022.
It is important to note the significant drop in return on total capital in the first quarter of 2019, indicating potential challenges or inefficiencies in capital utilization during that period.
Overall, the trend in return on total capital for Kraft Heinz Co has shown variability, with periods of improvement and decline. It suggests that the company may benefit from further analysis and strategies to consistently optimize its capital utilization and generate higher returns for its shareholders.
Peer comparison
Dec 31, 2023