ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Kraft Heinz Co's annualizedNet Income for the quarter that ended in Dec. 2023 was R$14,837 Mil.
The Kraft Heinz Co's average Total Assets over the quarter that ended in Dec. 2023 was R$442,714 Mil. Therefore, The Kraft Heinz Co's annualized ROA % for the quarter that ended in Dec. 2023 was 3.35%.
The historical rank and industry rank for The Kraft Heinz Co's ROA % or its related term are showing as below:
BSP:KHCB34'
s ROA % Range Over the Past 10 Years
Min: -9.12 Med: 2.23 Max: 9.1
Current: 3.16
During the past 13 years, The Kraft Heinz Co's highest ROA % was 9.10%. The lowest was -9.12%. And the median was 2.23%.
BSP:KHCB34's ROA % is ranked better than 51.6% of 1905
companies
in the Consumer Packaged Goods industry
Industry Median: 2.96
vs BSP:KHCB34: 3.16
The Kraft Heinz Co ROA % Historical Data
The historical data trend for The Kraft Heinz Co's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of The Kraft Heinz Co's ROA %
For the Packaged Foods subindustry, The Kraft Heinz Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Kraft Heinz Co's ROA % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's ROA % distribution charts can be found below:
* The bar in red indicates where The Kraft Heinz Co's ROA % falls into.
The Kraft Heinz Co ROA % Calculation
The Kraft Heinz Co's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
The Kraft Heinz Co (BSP:KHCB34) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
The Kraft Heinz Co ROA % Related Terms
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The Kraft Heinz Co (BSP:KHCB34) Business Description
In July 2015, Kraft merged with Heinz to create the third-largest food and beverage manufacturer in North America behind PepsiCo and Nestle and the fifth-largest player in the world. Beyond its namesake brands, the combined firm's portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm operates a growing presence in the foodservice arena. Outside North America, Kraft Heinz's global reach counts a distribution network in Europe and emerging markets that drives 20%-25% of its consolidated sales base, as its products are sold in more than 190 countries and territories.
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