Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

PepsiCo Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 23, 2024 48.22% = 9.18% × 5.25
Dec 30, 2023 49.04% = 9.03% × 5.43
Sep 9, 2023 44.08% = 8.29% × 5.31
Jun 17, 2023 44.67% = 8.24% × 5.42
Mar 25, 2023 38.62% = 7.07% × 5.46
Dec 31, 2022 51.96% = 9.67% × 5.38
Sep 3, 2022 51.19% = 10.28% × 4.98
Jun 11, 2022 49.78% = 9.92% × 5.02
Mar 19, 2022 55.85% = 10.93% × 5.11
Dec 25, 2021 47.48% = 8.25% × 5.76
Sep 4, 2021 51.29% = 8.73% × 5.88
Jun 12, 2021 53.65% = 8.88% × 6.04
Mar 20, 2021 53.75% = 8.22% × 6.54
Dec 26, 2020 52.92% = 7.66% × 6.91
Sep 5, 2020 52.22% = 7.65% × 6.83
Jun 13, 2020 54.84% = 7.65% × 7.17
Mar 21, 2020 53.76% = 8.51% × 6.32
Dec 28, 2019 49.47% = 9.31% × 5.31
Sep 7, 2019 — = — × 5.48
Jun 15, 2019 — = — × 5.38
Mar 23, 2019 — = — × 5.31

Based on: 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-05), 10-Q (reporting date: 2020-06-13), 10-Q (reporting date: 2020-03-21), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-07), 10-Q (reporting date: 2019-06-15), 10-Q (reporting date: 2019-03-23).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

PepsiCo Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 23, 2024 48.22% = 10.00% × 0.92 × 5.25
Dec 30, 2023 49.04% = 9.92% × 0.91 × 5.43
Sep 9, 2023 44.08% = 9.05% × 0.92 × 5.31
Jun 17, 2023 44.67% = 8.76% × 0.94 × 5.42
Mar 25, 2023 38.62% = 7.48% × 0.95 × 5.46
Dec 31, 2022 51.96% = 10.31% × 0.94 × 5.38
Sep 3, 2022 51.19% = 11.61% × 0.89 × 4.98
Jun 11, 2022 49.78% = 11.28% × 0.88 × 5.02
Mar 19, 2022 55.85% = 12.57% × 0.87 × 5.11
Dec 25, 2021 47.48% = 9.59% × 0.86 × 5.76
Sep 4, 2021 51.29% = 10.62% × 0.82 × 5.88
Jun 12, 2021 53.65% = 11.01% × 0.81 × 6.04
Mar 20, 2021 53.75% = 10.51% × 0.78 × 6.54
Dec 26, 2020 52.92% = 10.12% × 0.76 × 6.91
Sep 5, 2020 52.22% = 10.27% × 0.74 × 6.83
Jun 13, 2020 54.84% = 10.13% × 0.76 × 7.17
Mar 21, 2020 53.76% = 10.62% × 0.80 × 6.32
Dec 28, 2019 49.47% = 10.89% × 0.86 × 5.31
Sep 7, 2019 — = — × — × 5.48
Jun 15, 2019 — = — × — × 5.38
Mar 23, 2019 — = — × — × 5.31

Based on: 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-05), 10-Q (reporting date: 2020-06-13), 10-Q (reporting date: 2020-03-21), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-07), 10-Q (reporting date: 2019-06-15), 10-Q (reporting date: 2019-03-23).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

PepsiCo Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 23, 2024 9.18% = 10.00% × 0.92
Dec 30, 2023 9.03% = 9.92% × 0.91
Sep 9, 2023 8.29% = 9.05% × 0.92
Jun 17, 2023 8.24% = 8.76% × 0.94
Mar 25, 2023 7.07% = 7.48% × 0.95
Dec 31, 2022 9.67% = 10.31% × 0.94
Sep 3, 2022 10.28% = 11.61% × 0.89
Jun 11, 2022 9.92% = 11.28% × 0.88
Mar 19, 2022 10.93% = 12.57% × 0.87
Dec 25, 2021 8.25% = 9.59% × 0.86
Sep 4, 2021 8.73% = 10.62% × 0.82
Jun 12, 2021 8.88% = 11.01% × 0.81
Mar 20, 2021 8.22% = 10.51% × 0.78
Dec 26, 2020 7.66% = 10.12% × 0.76
Sep 5, 2020 7.65% = 10.27% × 0.74
Jun 13, 2020 7.65% = 10.13% × 0.76
Mar 21, 2020 8.51% = 10.62% × 0.80
Dec 28, 2019 9.31% = 10.89% × 0.86
Sep 7, 2019 — = — × —
Jun 15, 2019 — = — × —
Mar 23, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-05), 10-Q (reporting date: 2020-06-13), 10-Q (reporting date: 2020-03-21), 10-K (reporting date: 2019-12-28), 10-Q (reporting date: 2019-09-07), 10-Q (reporting date: 2019-06-15), 10-Q (reporting date: 2019-03-23).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2024 is the increase in asset turnover ratio.