KHCCAUTIOUS

Return on Equity (ROE)

-12.6%

Updated 80h ago

Sector Performance

11th percentile

KHC

-12.6%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from its shareholders' equity; a negative ROE means the company is producing a net loss relative to the equity invested.

KHC’s current ROE of -12.6% sits well below the sector median of 13.8%, placing it in the 11th percentile among sector peers – indicating most competitors are profitable while KHC is not. The year-over-year change and quarter-over-quarter change are both listed as N/A, and there is no trend data available for the last eight quarters, so no directional pattern can be assessed from this metric alone. The combination of a deeply negative ROE with no trend information suggests a high degree of risk, as the company is currently destroying shareholder value without any visible path to improvement. This metric directly contradicts the overall CAUTIOUS verdict by highlighting a more severe financial weakness than a cautious stance would imply — a prudent outlook typically assumes some stability, while a -12.6% ROE signals a fundamental profitability problem.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about KHC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are KHC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.