Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Keurig Dr Pepper Inc., long-term (investment) activity ratios
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).
The analysis of long-term activity ratios from 2018 to 2021 reveals a general improvement in asset and equity utilization efficiency, characterized by a significant shift in productivity between 2018 and 2019 followed by a period of stabilization and marginal growth.
- Fixed Asset Efficiency
- Net fixed asset turnover experienced a sharp increase from 3.22 in 2018 to a peak of 5.48 in 2019. This was followed by a slight downward trend, reaching 5.09 by 2021. A similar pattern is observed when accounting for operating lease right-of-use assets, where the ratio rose from 3.22 in 2018 to 4.40 in 2019, before declining gradually to 4.00 in 2021. The divergence between these two metrics indicates an increasing impact of right-of-use assets on the overall fixed asset base over the analyzed period.
- Total Asset Utilization
- Total asset turnover demonstrates a consistent and linear upward trend. Starting at 0.15 in 2018, the ratio improved to 0.22 in 2019, 0.23 in 2020, and 0.25 in 2021. This steady progression suggests a systematic improvement in the ability to generate revenue from the total asset base.
- Equity Productivity
- Equity turnover showed a substantial increase from 0.33 in 2018 to 0.48 in 2019. This growth continued at a slower pace over the subsequent two years, ending at 0.51 in 2021. This trend indicates that the company has become more efficient at utilizing shareholder equity to drive sales volume.
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Net Fixed Asset Turnover
Keurig Dr Pepper Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Property, plant and equipment, net | 2,494) | 2,212) | 2,028) | 2,310) | |
| Long-term Activity Ratio | |||||
| Net fixed asset turnover1 | 5.09 | 5.25 | 5.48 | 3.22 | |
| Benchmarks | |||||
| Net Fixed Asset Turnover, Competitors2 | |||||
| Coca-Cola Co. | 3.90 | — | — | — | |
| Mondelēz International Inc. | 3.32 | — | — | — | |
| PepsiCo Inc. | 3.55 | — | — | — | |
| Philip Morris International Inc. | 5.09 | — | — | — | |
| Net Fixed Asset Turnover, Sector | |||||
| Food, Beverage & Tobacco | 3.78 | — | — | — | |
| Net Fixed Asset Turnover, Industry | |||||
| Consumer Staples | 5.06 | — | — | — | |
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 2021 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 12,683 ÷ 2,494 = 5.09
2 Click competitor name to see calculations.
An analysis of long-term investment activity reveals a significant shift in asset productivity between 2018 and 2021, characterized by a sharp initial increase in efficiency followed by a period of gradual stabilization.
- Net Sales Trends
- Revenue demonstrated substantial growth, increasing from US$ 7,442 million in 2018 to US$ 11,120 million in 2019. This upward trajectory continued through 2021, with net sales reaching US$ 12,683 million, indicating a strong and consistent expansion of the top line.
- Property, Plant and Equipment (PP&E) Trends
- Net fixed assets experienced a slight contraction in 2019, falling to US$ 2,028 million from US$ 2,310 million in 2018. However, a subsequent trend of capital reinvestment is evident, as net PP&E rose to US$ 2,212 million in 2020 and further increased to US$ 2,494 million by the end of 2021.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio saw a marked improvement from 3.22 in 2018 to a peak of 5.48 in 2019, resulting from the simultaneous surge in net sales and a reduction in net PP&E. Following 2019, a slight downward trend is observed, with the ratio declining to 5.25 in 2020 and 5.09 in 2021. This suggests that while the company maintains a higher level of asset efficiency than in 2018, the recent growth in fixed asset investments has occurred at a slightly faster pace than the growth in net sales.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Keurig Dr Pepper Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Property, plant and equipment, net | 2,494) | 2,212) | 2,028) | 2,310) | |
| Operating lease right-of-use assets | 673) | 645) | 497) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 3,167) | 2,857) | 2,525) | 2,310) | |
| Long-term Activity Ratio | |||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.00 | 4.07 | 4.40 | 3.22 | |
| Benchmarks | |||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||
| Coca-Cola Co. | 3.41 | — | — | — | |
| Mondelēz International Inc. | 3.10 | — | — | — | |
| PepsiCo Inc. | 3.25 | — | — | — | |
| Philip Morris International Inc. | 4.69 | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||
| Food, Beverage & Tobacco | 3.45 | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||
| Consumer Staples | 4.55 | — | — | — | |
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 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 12,683 ÷ 3,167 = 4.00
2 Click competitor name to see calculations.
The analysis of long-term investment activity reveals a period of significant revenue acceleration followed by a stabilization in asset utilization efficiency from 2018 to 2021.
- Revenue Growth Patterns
- Net sales experienced a substantial increase from 7,442 million in 2018 to 12,683 million by 2021. The most pronounced growth occurred between 2018 and 2019, where sales rose by approximately 49.4%, followed by more moderate year-over-year increases in 2020 and 2021.
- Fixed Asset Accumulation
- Property, plant and equipment, net, including right-of-use assets, showed a consistent upward trend throughout the period. The asset base grew steadily from 2,310 million in 2018 to 3,167 million in 2021, indicating continuous investment in long-term infrastructure and leased assets.
- Net Fixed Asset Turnover Efficiency
- The net fixed asset turnover ratio rose sharply from 3.22 in 2018 to a peak of 4.40 in 2019, suggesting that the rapid increase in sales during that year significantly outpaced the growth of the asset base. However, a slight downward trend is observed from 2019 to 2021, with the ratio declining to 4.07 in 2020 and further to 4.00 in 2021. This indicates that while the company remains more efficient than it was in 2018, the pace of asset acquisition has recently exceeded the pace of sales growth.
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Total Asset Turnover
Keurig Dr Pepper Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | |||||
| Total asset turnover1 | 0.25 | 0.23 | 0.22 | 0.15 | |
| Benchmarks | |||||
| Total Asset Turnover, Competitors2 | |||||
| Coca-Cola Co. | 0.41 | — | — | — | |
| Mondelēz International Inc. | 0.43 | — | — | — | |
| PepsiCo Inc. | 0.86 | — | — | — | |
| Philip Morris International Inc. | 0.76 | — | — | — | |
| Total Asset Turnover, Sector | |||||
| Food, Beverage & Tobacco | 0.60 | — | — | — | |
| Total Asset Turnover, Industry | |||||
| Consumer Staples | 1.41 | — | — | — | |
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 2021 Calculation
Total asset turnover = Net sales ÷ Total assets
= 12,683 ÷ 50,598 = 0.25
2 Click competitor name to see calculations.
The analysis of investment activity between 2018 and 2021 indicates a consistent improvement in the efficiency with which assets are utilized to generate revenue. While the asset base remained relatively stable, a significant increase in net sales drove a steady upward trend in the total asset turnover ratio.
- Net Sales Growth
- Net sales exhibited substantial growth over the analyzed period, rising from 7,442 million US dollars in 2018 to 12,683 million US dollars by 2021. The most pronounced increase occurred between 2018 and 2019, followed by moderate and steady annual growth through 2021.
- Asset Base Stability
- Total assets remained remarkably stable, moving from 48,918 million US dollars in 2018 to 50,598 million US dollars in 2021. This minimal expansion suggests that the growth in revenue was achieved without requiring significant proportional increases in the company's capital investment.
- Total Asset Turnover Trend
- The total asset turnover ratio improved consecutively each year, increasing from 0.15 in 2018 to 0.25 in 2021. This progression demonstrates an enhanced ability to generate sales from the existing asset base, reflecting improved operational efficiency and higher sales productivity per unit of investment.
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Equity Turnover
Keurig Dr Pepper Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Stockholders’ equity | 24,972) | 23,829) | 23,257) | 22,533) | |
| Long-term Activity Ratio | |||||
| Equity turnover1 | 0.51 | 0.49 | 0.48 | 0.33 | |
| Benchmarks | |||||
| Equity Turnover, Competitors2 | |||||
| Coca-Cola Co. | 1.68 | — | — | — | |
| Mondelēz International Inc. | 1.02 | — | — | — | |
| PepsiCo Inc. | 4.95 | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | |
| Equity Turnover, Sector | |||||
| Food, Beverage & Tobacco | 3.12 | — | — | — | |
| Equity Turnover, Industry | |||||
| Consumer Staples | 5.06 | — | — | — | |
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 2021 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= 12,683 ÷ 24,972 = 0.51
2 Click competitor name to see calculations.
The financial trajectory from 2018 to 2021 indicates a substantial improvement in the efficiency of capital utilization. A consistent upward trend is observed in both top-line revenue and the equity turnover ratio, suggesting that the organization has successfully scaled its operations relative to its equity base.
- Net Sales Growth
- Revenue experienced a sharp acceleration between 2018 and 2019, increasing from 7,442 million US$ to 11,120 million US$. This growth trend continued at a more moderate but steady pace over the following two years, concluding at 12,683 million US$ by the end of 2021.
- Stockholders’ Equity Trends
- Equity grew incrementally throughout the analyzed period, rising from 22,533 million US$ in 2018 to 24,972 million US$ in 2021. The expansion of the equity base remained stable and grew at a significantly slower rate than the increase in net sales.
- Equity Turnover Efficiency
- The equity turnover ratio improved markedly from 0.33 in 2018 to 0.51 in 2021. The most significant increase occurred between 2018 and 2019, when the ratio rose to 0.48, reflecting a more efficient conversion of shareholder investments into revenue. The subsequent marginal increases to 0.49 and 0.51 demonstrate a sustained ability to generate higher sales volumes per unit of equity.
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