Return on Assets (ROA)
since 2008
Calculation
Keurig Dr Pepper Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to KDP1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 4.24% | = | 100 | × | 2,146) | ÷ | 50,598) |
| Dec 31, 2020 | 2.66% | = | 100 | × | 1,325) | ÷ | 49,779) |
| Dec 31, 2019 | 2.53% | = | 100 | × | 1,254) | ÷ | 49,518) |
| Dec 31, 2018 | 1.20% | = | 100 | × | 586) | ÷ | 48,918) |
| Dec 31, 2017 | 10.74% | = | 100 | × | 1,076) | ÷ | 10,022) |
| Dec 31, 2016 | 8.65% | = | 100 | × | 847) | ÷ | 9,791) |
| Dec 31, 2015 | 8.61% | = | 100 | × | 764) | ÷ | 8,869) |
| Dec 31, 2014 | 8.50% | = | 100 | × | 703) | ÷ | 8,273) |
| Dec 31, 2013 | 7.61% | = | 100 | × | 624) | ÷ | 8,201) |
| Dec 31, 2012 | 7.05% | = | 100 | × | 629) | ÷ | 8,928) |
| Dec 31, 2011 | 6.53% | = | 100 | × | 606) | ÷ | 9,283) |
| Dec 31, 2010 | 5.96% | = | 100 | × | 528) | ÷ | 8,859) |
| Dec 31, 2009 | 6.32% | = | 100 | × | 555) | ÷ | 8,776) |
| Dec 31, 2008 | -3.61% | = | 100 | × | (312) | ÷ | 8,638) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
1 US$ in millions
The financial trajectory from 2008 to 2021 reveals a significant shift in the company's asset utilization and capital structure, marked by a period of steady organic growth followed by a massive expansion of the balance sheet.
- Net Income Performance
- Net income exhibited a general upward trend, recovering from a loss of US$312 million in 2008 to a peak of US$2,146 million by 2021. While growth was consistent through 2017, a sharp decline occurred in 2018, where net income fell to US$586 million, before resuming a strong growth trajectory from 2019 onward.
- Asset Base Expansion
- Total assets remained relatively stable between 2008 and 2017, fluctuating within a range of US$8.2 billion to US$10.0 billion. A fundamental change occurred in 2018, where total assets increased approximately five-fold to US$48.9 billion. This asset base remained consistently high through 2021, ending at US$50.6 billion.
- Return on Assets (ROA) Dynamics
- The ROA trend is divided into two distinct eras. From 2009 to 2017, the company demonstrated increasing asset efficiency, with ROA climbing steadily from 6.32% to a peak of 10.74%. However, the massive increase in total assets in 2018 led to a precipitous drop in ROA to 1.20%, as the denominator of the ratio expanded far more rapidly than net income. Since 2018, there has been a gradual recovery in asset efficiency, with ROA rising to 4.24% by 2021.
The data indicates that while the company has successfully scaled its net income to record levels, the substantial increase in the asset base has permanently altered the ROA profile, shifting the operational benchmark from a high-single-digit return to a lower-single-digit return environment.
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Comparison to Competitors
Keurig Dr Pepper Inc., ROA, long-term trends, comparison to competitors
| Keurig Dr Pepper Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 4.24% | 10.36% | 6.41% | 8.25% | 22.06% |
| Dec 31, 2020 | 2.66% | 8.87% | 5.24% | 7.66% | 17.98% |
| Dec 31, 2019 | 2.53% | 10.33% | 6.00% | 9.31% | 16.76% |
| Dec 31, 2018 | 1.20% | 7.73% | 5.39% | 16.12% | 19.88% |
| Dec 31, 2017 | 10.74% | 1.42% | 4.63% | 6.09% | 14.05% |
| Dec 31, 2016 | 8.65% | 7.48% | 2.70% | 8.54% | 18.91% |
| Dec 31, 2015 | 8.61% | 8.16% | 11.56% | 7.83% | 20.24% |
| Dec 31, 2014 | 8.50% | 7.71% | 3.27% | 9.24% | 21.29% |
| Dec 31, 2013 | 7.61% | 9.53% | 5.40% | 8.70% | 22.47% |
| Dec 31, 2012 | 7.05% | 10.47% | 4.01% | 8.28% | 23.36% |
| Dec 31, 2011 | 6.53% | 10.72% | 3.76% | 8.84% | 24.21% |
| Dec 31, 2010 | 5.96% | 16.19% | 4.32% | 9.27% | 20.71% |
| Dec 31, 2009 | 6.32% | 14.02% | 4.53% | 14.92% | 18.35% |
| Dec 31, 2008 | -3.61% | 14.33% | 4.60% | 14.29% | 20.90% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Keurig Dr Pepper Inc., ROA, long-term trends, comparison to sector (food, beverage & tobacco)
| Keurig Dr Pepper Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2021 | 4.24% | 10.44% |
| Dec 31, 2020 | 2.66% | 9.04% |
| Dec 31, 2019 | 2.53% | 10.02% |
| Dec 31, 2018 | 1.20% | 11.48% |
| Dec 31, 2017 | 10.74% | 5.50% |
| Dec 31, 2016 | 8.65% | 8.27% |
| Dec 31, 2015 | 8.61% | 10.50% |
| Dec 31, 2014 | 8.50% | 8.80% |
| Dec 31, 2013 | 7.61% | 10.00% |
| Dec 31, 2012 | 7.05% | 9.86% |
| Dec 31, 2011 | 6.53% | 9.62% |
| Dec 31, 2010 | 5.96% | 10.87% |
| Dec 31, 2009 | 6.32% | 11.66% |
| Dec 31, 2008 | -3.61% | 12.02% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
Comparison to Industry (Consumer Staples)
Keurig Dr Pepper Inc., ROA, long-term trends, comparison to industry (consumer staples)
| Keurig Dr Pepper Inc. | Consumer Staples | |
|---|---|---|
| Dec 31, 2021 | 4.24% | 8.75% |
| Dec 31, 2020 | 2.66% | 8.24% |
| Dec 31, 2019 | 2.53% | 6.41% |
| Dec 31, 2018 | 1.20% | 8.40% |
| Dec 31, 2017 | 10.74% | 7.42% |
| Dec 31, 2016 | 8.65% | 7.94% |
| Dec 31, 2015 | 8.61% | 7.69% |
| Dec 31, 2014 | 8.50% | 7.96% |
| Dec 31, 2013 | 7.61% | 8.75% |
| Dec 31, 2012 | 7.05% | 8.63% |
| Dec 31, 2011 | 6.53% | 8.89% |
| Dec 31, 2010 | 5.96% | 9.45% |
| Dec 31, 2009 | 6.32% | 9.43% |
| Dec 31, 2008 | -3.61% | 9.11% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).