PepsiCo Inc. (PEP)

Profitability Analysis

Annual Data | Quarterly Data

Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).


Ratios (Summary)

Annual Data | Quarterly Data

PepsiCo Inc., profitability ratios

 
    Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
  Return on Sales
Gross profit margin 52.96% 52.22% 52.49% 54.05% 53.51%
Operating profit margin 14.61% 13.91% 14.48% 14.41% 18.61%
Net profit margin 10.15% 9.43% 9.69% 10.93% 13.75%
  Return on Investment
Return on equity (ROE) 27.76% 27.71% 31.29% 29.86% 35.38%
Return on assets (ROA) 8.70% 8.28% 8.84% 9.27% 14.92%

Source: Based on data from PepsiCo Inc. Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. PepsiCo Inc.'s gross profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. PepsiCo Inc.'s operating profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. PepsiCo Inc.'s net profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.
ROE A profitability ratio calculated as net income divided by shareholders' equity. PepsiCo Inc.'s ROE deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.
ROA A profitability ratio calculated as net income divided by total assets. PepsiCo Inc.'s ROA deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

Gross Profit Margin

Annual Data | Quarterly Data

 
    Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
  Selected Financial Data (USD $ in millions)
Gross profit 35,172  34,201  34,911  31,263  23,133 
Net revenue 66,415  65,492  66,504  57,838  43,232 
   
Gross profit margin1 52.96% 52.22% 52.49% 54.05% 53.51%

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 35,172 ÷ 66,415 = 52.96%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. PepsiCo Inc.'s gross profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

Operating Profit Margin

Annual Data | Quarterly Data

 
    Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
  Selected Financial Data (USD $ in millions)
Operating profit 9,705  9,112  9,633  8,332  8,044 
Net revenue 66,415  65,492  66,504  57,838  43,232 
  Operating Profit Margin, Comparison to Industry
PepsiCo Inc.1 14.61% 13.91% 14.48% 14.41% 18.61%
  Industry, Consumer Goods 11.48% 10.18% 10.76% 10.31% 8.41%

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 Operating profit margin = 100 × Operating profit ÷ Net revenue
= 100 × 9,705 ÷ 66,415 = 14.61%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. PepsiCo Inc.'s operating profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

Net Profit Margin

Annual Data | Quarterly Data

 
    Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
  Selected Financial Data (USD $ in millions)
Net income attributable to PepsiCo 6,740  6,178  6,443  6,320  5,946 
Net revenue 66,415  65,492  66,504  57,838  43,232 
  Net Profit Margin, Comparison to Industry
PepsiCo Inc.1 10.15% 9.43% 9.69% 10.93% 13.75%
  Industry, Consumer Goods 8.60% 7.49% 9.33% 8.38% 6.40%

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × 6,740 ÷ 66,415 = 10.15%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. PepsiCo Inc.'s net profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

Return on Equity (ROE)

Annual Data | Quarterly Data

 
    Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
  Selected Financial Data (USD $ in millions)
Net income attributable to PepsiCo 6,740  6,178  6,443  6,320  5,946 
Total PepsiCo shareholders' equity 24,279  22,294  20,588  21,164  16,804 
  ROE, Comparison to Industry
PepsiCo Inc.1 27.76% 27.71% 31.29% 29.86% 35.38%
  Industry, Consumer Goods 20.00% 17.50% 22.11% 19.80% 16.48%

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo shareholders' equity
= 100 × 6,740 ÷ 24,279 = 27.76%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. PepsiCo Inc.'s ROE deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.

Return on Assets (ROA)

Annual Data | Quarterly Data

 
    Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
  Selected Financial Data (USD $ in millions)
Net income attributable to PepsiCo 6,740  6,178  6,443  6,320  5,946 
Total assets 77,478  74,638  72,882  68,153  39,848 
  ROA, Comparison to Industry
PepsiCo Inc.1 8.70% 8.28% 8.84% 9.27% 14.92%
  Industry, Consumer Goods 6.29% 5.41% 6.96% 6.08% 4.79%

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 6,740 ÷ 77,478 = 8.70%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. PepsiCo Inc.'s ROA deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.