Stock Analysis on Net
Stock Analysis on Net

Keurig Dr Pepper Inc. (NASDAQ:KDP)

This company has been moved to the archive! The financial data has not been updated since July 28, 2022.

Analysis of Operating Leases

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An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Keurig Dr Pepper Inc., adjustments to financial statements

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 50,598 49,779 49,518 48,918
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — 246
Total assets (adjusted) 50,598 49,779 49,518 49,164
Adjustment to Total Debt
Total debt (as reported) 12,582 13,830 14,730 15,990
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — 246
Add: Current operating lease liability 76 72 69 —
Add: Non-current operating lease liability 608 580 427 —
Total debt (adjusted) 13,266 14,482 15,226 16,236

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1, 2 Equal to total present value of future operating lease payments.

Keurig Dr Pepper Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Keurig Dr Pepper Inc., adjusted financial ratios

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover1
Reported total asset turnover 0.25 0.23 0.22 0.15
Adjusted total asset turnover 0.25 0.23 0.22 0.15
Debt to Equity2
Reported debt to equity 0.50 0.58 0.63 0.71
Adjusted debt to equity 0.53 0.61 0.65 0.72
Return on Assets3 (ROA)
Reported ROA 4.24% 2.66% 2.53% 1.20%
Adjusted ROA 4.24% 2.66% 2.53% 1.19%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 See details »

3 See details »

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Keurig Dr Pepper Inc. adjusted debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

Keurig Dr Pepper Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales 12,683 11,618 11,120 7,442
Total assets 50,598 49,779 49,518 48,918
Activity Ratio
Total asset turnover1 0.25 0.23 0.22 0.15
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales 12,683 11,618 11,120 7,442
Adjusted total assets 50,598 49,779 49,518 49,164
Activity Ratio
Adjusted total asset turnover2 0.25 0.23 0.22 0.15

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 12,683 ÷ 50,598 = 0.25

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 12,683 ÷ 50,598 = 0.25

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Equity

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total debt 12,582 13,830 14,730 15,990
Stockholders’ equity 24,972 23,829 23,257 22,533
Solvency Ratio
Debt to equity1 0.50 0.58 0.63 0.71
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 13,266 14,482 15,226 16,236
Stockholders’ equity 24,972 23,829 23,257 22,533
Solvency Ratio
Adjusted debt to equity2 0.53 0.61 0.65 0.72

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2021 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 12,582 ÷ 24,972 = 0.50

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 13,266 ÷ 24,972 = 0.53

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Keurig Dr Pepper Inc. adjusted debt-to-equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to KDP 2,146 1,325 1,254 586
Total assets 50,598 49,779 49,518 48,918
Profitability Ratio
ROA1 4.24% 2.66% 2.53% 1.20%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to KDP 2,146 1,325 1,254 586
Adjusted total assets 50,598 49,779 49,518 49,164
Profitability Ratio
Adjusted ROA2 4.24% 2.66% 2.53% 1.19%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2021 Calculations

1 ROA = 100 × Net income attributable to KDP ÷ Total assets
= 100 × 2,146 ÷ 50,598 = 4.24%

2 Adjusted ROA = 100 × Net income attributable to KDP ÷ Adjusted total assets
= 100 × 2,146 ÷ 50,598 = 4.24%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Keurig Dr Pepper Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.