FIN 317 – HOMEWORK 5 KRAFT HEINZ CO (KHC)
Use the Form 10-K for KRAFT HEINZ CO (KHC) using the EDGAR database at the SEC web site (www.sec.gov). Answer the following questions using Kraft’s most recent (2020) Form 10-K (filing date: 2021-02-17).
1.Asset Management Efficiency
a.Calculate activity ratios (Accounts Receivable Turnover, Inventory Turnover, Accounts Payable Turnover, Fixed Asset Turnover, Total Asset Turnover) for all years presented (2020 and 2019).
b.Get world industry median values from EquityRT to compare to the calculations in part (a) (for ratios that are available in EquityRT) (Go to EquityRT and click on “Financial Health” section to get the world industry median values).
c.Assess the company based on its activity ratios. Comment on any significant year-to-year changes. Discuss whether the company is managing its assets efficiently compared to industry median values.
2.Profitability Analysis
a.Calculate profitability ratios (Gross Profit Margin, Operating Profit Margin, Net Profit Margin, ROA, ROE) for all years presented (2020 and 2019).
b.Get world industry median values from EquityRT to compare to the calculations in part (a). (Go to EquityRT and click on “Financial Health” section to get the world industry median values).
c.Assess the company based on its profitability. Comment on any significant year-to-year changes. Evaluate company based on its profitability compared to industry median values.
