Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
PepsiCo Inc., profitability ratios
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | PepsiCo Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | PepsiCo Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | PepsiCo Inc. net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | PepsiCo Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | PepsiCo Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Gross Profit Margin
PepsiCo Inc., gross profit margin calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 49,590) | 45,816) | 42,399) | 38,575) | 37,029) | |
| Net revenue | 91,471) | 86,392) | 79,474) | 70,372) | 67,161) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 54.21% | 53.03% | 53.35% | 54.82% | 55.13% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 58.34% | 56.77% | 53.79% | 49.80% | 50.62% | |
| Coca-Cola Co. | 59.52% | 58.14% | 60.27% | 59.31% | 60.77% | |
| Mondelēz International Inc. | 38.22% | 35.92% | 39.19% | 39.30% | 39.96% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 49,590 ÷ 91,471 = 54.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | PepsiCo Inc. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Operating Profit Margin
PepsiCo Inc., operating profit margin calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | 11,986) | 11,512) | 11,162) | 10,080) | 10,291) | |
| Net revenue | 91,471) | 86,392) | 79,474) | 70,372) | 67,161) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 13.10% | 13.33% | 14.04% | 14.32% | 15.32% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 47.16% | 47.49% | 44.44% | 41.57% | 41.12% | |
| Coca-Cola Co. | 24.72% | 25.37% | 26.67% | 27.25% | 27.06% | |
| Mondelēz International Inc. | 15.28% | 11.22% | 16.20% | 14.50% | 14.86% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 20.41% | 20.36% | 21.80% | 21.65% | 22.23% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 7.38% | 8.47% | 8.40% | 8.12% | 7.40% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Net revenue
= 100 × 11,986 ÷ 91,471 = 13.10%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | PepsiCo Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
PepsiCo Inc., net profit margin calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 9,074) | 8,910) | 7,618) | 7,120) | 7,314) | |
| Net revenue | 91,471) | 86,392) | 79,474) | 70,372) | 67,161) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 9.92% | 10.31% | 9.59% | 10.12% | 10.89% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 33.21% | 22.97% | 9.51% | 17.08% | -5.15% | |
| Coca-Cola Co. | 23.42% | 22.19% | 25.28% | 23.47% | 23.94% | |
| Mondelēz International Inc. | 13.77% | 8.63% | 14.97% | 13.37% | 14.96% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 16.63% | 14.48% | 13.98% | 14.66% | 12.10% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 5.55% | 5.87% | 5.64% | 5.88% | 3.76% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × 9,074 ÷ 91,471 = 9.92%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | PepsiCo Inc. net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Return on Equity (ROE)
PepsiCo Inc., ROE calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 9,074) | 8,910) | 7,618) | 7,120) | 7,314) | |
| Total PepsiCo common shareholders’ equity | 18,503) | 17,149) | 16,043) | 13,454) | 14,786) | |
| Profitability Ratio | ||||||
| ROE1 | 49.04% | 51.96% | 47.48% | 52.92% | 49.47% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | 157.34% | -20.78% | |
| Coca-Cola Co. | 41.30% | 39.59% | 42.48% | 40.14% | 46.99% | |
| Mondelēz International Inc. | 17.50% | 10.11% | 15.21% | 12.89% | 14.19% | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 47.49% | 41.98% | 36.78% | 36.23% | 27.97% | |
| ROE, Industry | ||||||
| Consumer Staples | 29.82% | 29.95% | 27.27% | 27.08% | 16.85% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo common shareholders’ equity
= 100 × 9,074 ÷ 18,503 = 49.04%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | PepsiCo Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Return on Assets (ROA)
PepsiCo Inc., ROA calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 9,074) | 8,910) | 7,618) | 7,120) | 7,314) | |
| Total assets | 100,495) | 92,187) | 92,377) | 92,918) | 78,547) | |
| Profitability Ratio | ||||||
| ROA1 | 9.03% | 9.67% | 8.25% | 7.66% | 9.31% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Altria Group Inc. | 21.08% | 15.60% | 6.26% | 9.42% | -2.62% | |
| Coca-Cola Co. | 10.97% | 10.29% | 10.36% | 8.87% | 10.33% | |
| Mondelēz International Inc. | 6.95% | 3.82% | 6.41% | 5.24% | 6.00% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 10.67% | 9.19% | 8.24% | 7.75% | 6.75% | |
| ROA, Industry | ||||||
| Consumer Staples | 8.59% | 8.81% | 7.91% | 7.73% | 5.14% | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 9,074 ÷ 100,495 = 9.03%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | PepsiCo Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |