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PepsiCo Inc. (PEP) | Profitability Analysis

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


Ratios (Summary)

PepsiCo Inc., profitability ratios

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    Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008
  Return on Sales
Gross profit margin 52.22% 52.49% 54.05% 53.51% 52.95%
Operating profit margin 13.91% 14.48% 14.41% 18.61% 16.09%
Net profit margin 9.43% 9.69% 10.93% 13.75% 11.89%
  Return on Investment
Return on equity (ROE) 27.71% 31.29% 29.86% 35.38% 42.47%
Return on assets (ROA) 8.28% 8.84% 9.27% 14.92% 14.29%

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 2010 to 2011 and from 2011 to 2012.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. PepsiCo Inc.'s operating profit margin improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. PepsiCo Inc.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012.
ROE A profitability ratio calculated as net income divided by shareholders' equity. PepsiCo Inc.'s ROE improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
ROA A profitability ratio calculated as net income divided by total assets. PepsiCo Inc.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012.

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Gross Profit Margin

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    Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008
  Selected Financial Data (USD $ in millions)
Gross profit 34,201  34,911  31,263  23,133  22,900 
Net revenue 65,492  66,504  57,838  43,232  43,251 
   
Gross profit margin1 52.22% 52.49% 54.05% 53.51% 52.95%

Source: Based on data from PepsiCo Inc. Annual Reports

2012 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 34,201 ÷ 65,492 = 52.22%

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 2010 to 2011 and from 2011 to 2012.

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Operating Profit Margin

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    Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008
  Selected Financial Data (USD $ in millions)
Operating profit 9,112  9,633  8,332  8,044  6,959 
Net revenue 65,492  66,504  57,838  43,232  43,251 
  Operating Profit Margin, Comparison to Industry
PepsiCo Inc.1 13.91% 14.48% 14.41% 18.61% 16.09%
  Industry, Consumer Goods 11.22% 11.69% 11.15% 9.78% 13.65%

Source: Based on data from PepsiCo Inc. Annual Reports

2012 Calculations

1 Operating profit margin = 100 × Operating profit ÷ Net revenue
= 100 × 9,112 ÷ 65,492 = 13.91%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. PepsiCo Inc.'s operating profit margin improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

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Net Profit Margin

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    Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008
  Selected Financial Data (USD $ in millions)
Net income attributable to PepsiCo 6,178  6,443  6,320  5,946  5,142 
Net revenue 65,492  66,504  57,838  43,232  43,251 
  Net Profit Margin, Comparison to Industry
PepsiCo Inc.1 9.43% 9.69% 10.93% 13.75% 11.89%
  Industry, Consumer Goods 7.92% 8.48% 8.87% 6.92% 9.83%

Source: Based on data from PepsiCo Inc. Annual Reports

2012 Calculations

1 Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × 6,178 ÷ 65,492 = 9.43%

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 2010 to 2011 and from 2011 to 2012.

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Return on Equity (ROE)

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    Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008
  Selected Financial Data (USD $ in millions)
Net income attributable to PepsiCo 6,178  6,443  6,320  5,946  5,142 
Total PepsiCo shareholders' equity 22,294  20,588  21,164  16,804  12,106 
  ROE, Comparison to Industry
PepsiCo Inc.1 27.71% 31.29% 29.86% 35.38% 42.47%
  Industry, Consumer Goods 17.43% 18.57% 18.69% 15.59% 23.49%

Source: Based on data from PepsiCo Inc. Annual Reports

2012 Calculations

1 ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo shareholders' equity
= 100 × 6,178 ÷ 22,294 = 27.71%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. PepsiCo Inc.'s ROE improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

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Return on Assets (ROA)

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    Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008
  Selected Financial Data (USD $ in millions)
Net income attributable to PepsiCo 6,178  6,443  6,320  5,946  5,142 
Total assets 74,638  72,882  68,153  39,848  35,994 
  ROA, Comparison to Industry
PepsiCo Inc.1 8.28% 8.84% 9.27% 14.92% 14.29%
  Industry, Consumer Goods 5.96% 6.50% 6.63% 5.61% 8.66%

Source: Based on data from PepsiCo Inc. Annual Reports

2012 Calculations

1 ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 6,178 ÷ 74,638 = 8.28%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. PepsiCo Inc.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012.

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