Return on Equity (ROE)
since 2008
Calculation
Keurig Dr Pepper Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to KDP1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 8.59% | = | 100 | × | 2,146) | ÷ | 24,972) |
| Dec 31, 2020 | 5.56% | = | 100 | × | 1,325) | ÷ | 23,829) |
| Dec 31, 2019 | 5.39% | = | 100 | × | 1,254) | ÷ | 23,257) |
| Dec 31, 2018 | 2.60% | = | 100 | × | 586) | ÷ | 22,533) |
| Dec 31, 2017 | 43.90% | = | 100 | × | 1,076) | ÷ | 2,451) |
| Dec 31, 2016 | 39.69% | = | 100 | × | 847) | ÷ | 2,134) |
| Dec 31, 2015 | 35.00% | = | 100 | × | 764) | ÷ | 2,183) |
| Dec 31, 2014 | 30.65% | = | 100 | × | 703) | ÷ | 2,294) |
| Dec 31, 2013 | 27.40% | = | 100 | × | 624) | ÷ | 2,277) |
| Dec 31, 2012 | 27.59% | = | 100 | × | 629) | ÷ | 2,280) |
| Dec 31, 2011 | 26.78% | = | 100 | × | 606) | ÷ | 2,263) |
| Dec 31, 2010 | 21.47% | = | 100 | × | 528) | ÷ | 2,459) |
| Dec 31, 2009 | 17.41% | = | 100 | × | 555) | ÷ | 3,187) |
| Dec 31, 2008 | -11.97% | = | 100 | × | (312) | ÷ | 2,607) |
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 of the organization is characterized by two distinct operational phases separated by a significant structural shift in the capital base during 2018. The first period is marked by aggressive growth in profitability and efficiency, while the second period reflects a transition toward a much larger equity base and a subsequent gradual recovery in returns.
- Growth and Efficiency Phase (2008–2017)
- A strong upward trend in Return on Equity (ROE) is observed during this period, ascending from a deficit of -11.97% in 2008 to a peak of 43.90% in 2017. This expansion was primarily driven by a consistent increase in net income, which grew from a loss of 312 million in 2008 to 1.08 billion in 2017. Throughout this decade, stockholders' equity remained relatively stable, fluctuating between 2.13 billion and 3.19 billion, which amplified the impact of earnings growth on the ROE percentage.
- Capital Structure Shift (2018)
- A fundamental change in the balance sheet occurred in 2018, where stockholders' equity experienced a massive increase, rising from 2.45 billion in 2017 to 22.53 billion in 2018. This surge in the equity denominator, coupled with a temporary decline in net income to 586 million, resulted in a sharp contraction of ROE, which fell to 2.60%. This indicates a significant recapitalization event that substantially diluted the return on equity.
- Recovery and Stabilization Phase (2019–2021)
- Following the structural shift, a period of steady recovery in profitability is evident. Net income grew consistently from 1.25 billion in 2019 to 2.15 billion by 2021. While the expanded equity base remained high, reaching 24.97 billion in 2021, the increasing net income drove a gradual improvement in ROE, which rose from 5.39% in 2019 to 8.59% in 2021. This suggests a trend of optimizing returns on the newly established capital structure.
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Comparison to Competitors
Keurig Dr Pepper Inc., ROE, 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 | 8.59% | 42.48% | 15.21% | 47.48% | — |
| Dec 31, 2020 | 5.56% | 40.14% | 12.89% | 52.92% | — |
| Dec 31, 2019 | 5.39% | 46.99% | 14.19% | 49.47% | — |
| Dec 31, 2018 | 2.60% | 37.89% | 13.19% | 86.20% | — |
| Dec 31, 2017 | 43.90% | 7.31% | 11.19% | 44.60% | — |
| Dec 31, 2016 | 39.69% | 28.30% | 6.59% | 57.04% | — |
| Dec 31, 2015 | 35.00% | 28.77% | 25.94% | 45.73% | — |
| Dec 31, 2014 | 30.65% | 23.41% | 7.87% | 37.35% | — |
| Dec 31, 2013 | 27.40% | 25.88% | 12.09% | 27.76% | — |
| Dec 31, 2012 | 27.59% | 27.51% | 9.40% | 27.71% | — |
| Dec 31, 2011 | 26.78% | 27.10% | 10.02% | 31.29% | 3,751.53% |
| Dec 31, 2010 | 21.47% | 38.09% | 11.48% | 29.86% | 207.05% |
| Dec 31, 2009 | 17.41% | 27.52% | 11.67% | 35.38% | 110.95% |
| Dec 31, 2008 | -11.97% | 28.37% | 13.07% | 42.47% | 91.87% |
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., ROE, long-term trends, comparison to sector (food, beverage & tobacco)
| Keurig Dr Pepper Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2021 | 8.59% | 53.84% |
| Dec 31, 2020 | 5.56% | 55.44% |
| Dec 31, 2019 | 5.39% | 55.17% |
| Dec 31, 2018 | 2.60% | 67.69% |
| Dec 31, 2017 | 43.90% | 35.87% |
| Dec 31, 2016 | 39.69% | 46.07% |
| Dec 31, 2015 | 35.00% | 51.57% |
| Dec 31, 2014 | 30.65% | 37.04% |
| Dec 31, 2013 | 27.40% | 33.90% |
| Dec 31, 2012 | 27.59% | 32.24% |
| Dec 31, 2011 | 26.78% | 30.95% |
| Dec 31, 2010 | 21.47% | 32.24% |
| Dec 31, 2009 | 17.41% | 30.24% |
| Dec 31, 2008 | -11.97% | 33.30% |
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., ROE, long-term trends, comparison to industry (consumer staples)
| Keurig Dr Pepper Inc. | Consumer Staples | |
|---|---|---|
| Dec 31, 2021 | 8.59% | 31.40% |
| Dec 31, 2020 | 5.56% | 30.98% |
| Dec 31, 2019 | 5.39% | 22.71% |
| Dec 31, 2018 | 2.60% | 28.05% |
| Dec 31, 2017 | 43.90% | 25.14% |
| Dec 31, 2016 | 39.69% | 25.00% |
| Dec 31, 2015 | 35.00% | 23.15% |
| Dec 31, 2014 | 30.65% | 23.21% |
| Dec 31, 2013 | 27.40% | 24.09% |
| Dec 31, 2012 | 27.59% | 23.55% |
| Dec 31, 2011 | 26.78% | 23.75% |
| Dec 31, 2010 | 21.47% | 24.19% |
| Dec 31, 2009 | 17.41% | 23.20% |
| Dec 31, 2008 | -11.97% | 22.49% |
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).