ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Kraft Heinz Co's annualized net income for the quarter that ended in Dec. 2023 was $3,028 Mil. The Kraft Heinz Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $49,401 Mil. Therefore, The Kraft Heinz Co's annualized ROE % for the quarter that ended in Dec. 2023 was 6.13%.
The historical rank and industry rank for The Kraft Heinz Co's ROE % or its related term are showing as below:
KHC'
s ROE % Range Over the Past 10 Years
Min: -17.35 Med: 4.29 Max: 21.84
Current: 5.79
During the past 13 years, The Kraft Heinz Co's highest ROE % was 21.84%. The lowest was -17.35%. And the median was 4.29%.
KHC's ROE % is ranked worse than 51.87% of 1818
companies
in the Consumer Packaged Goods industry
Industry Median: 6.35
vs KHC: 5.79
The Kraft Heinz Co ROE % Historical Data
The historical data trend for The Kraft Heinz Co's ROE % 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.
For the Packaged Foods subindustry, The Kraft Heinz Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's ROE % distribution charts can be found below:
* The bar in red indicates where The Kraft Heinz Co's ROE % falls into.
The Kraft Heinz Co ROE % Calculation
The Kraft Heinz Co's annualized ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
The Kraft Heinz Co (NAS:KHC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
The Kraft Heinz Co ROE % Related Terms
Thank you for viewing the detailed overview of The Kraft Heinz Co's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Kraft Heinz Co (The Kraft Heinz Co) 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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