Kraft Foods Group (LTS:0R3B) ROCE % : 5.63% (As of Dec. 2023)

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What is Kraft Foods Group ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Kraft Foods Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.63%.

Kraft Foods Group ROCE % Historical Data

The historical data trend for Kraft Foods Group's ROCE % 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.

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Kraft Foods Group ROCE % Chart

Kraft Foods Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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4.22

2.48

4.34

4.72

5.34

Kraft Foods Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															6.10	6.23	6.71	3.35	5.63

Kraft Foods Group ROCE % Calculation

Kraft Foods Group's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	3930.516	/	( ( (84321.911 - 8410.485)	+	(78125.167 - 6950.398) )	/ 2 )
	=	3930.516	/	( (75911.426	+	71174.769)	/ 2 )
	=	3930.516	/	73543.0975
	=	5.34 %

Kraft Foods Group's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	4078.396	/	( ( (80654.538 - 7020.478)	+	(78125.167 - 6950.398) )	/ 2 )
	=	4078.396	/	( ( 73634.06	+	71174.769 )	/ 2 )
	=	4078.396	/	72404.4145
	=	5.63 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Kraft Foods Group (LTS:0R3B) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Kraft Foods Group ROCE % Related Terms

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Kraft Foods Group (LTS:0R3B) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Kraft Foods Group Inc (LTS:0R3B) » Definitions » ROCE %

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Address

One PPG Place, Pittsburgh, PA, USA, 15222

Website

https://www.kraftheinzcompany.com

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.

Kraft Foods Group (LTS:0R3B) Headlines

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