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
Based on: 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), 10-K (reporting date: 2018-12-29).
1, 2 Equal to total present value of future operating lease payments.
PepsiCo Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios for Operating Leases (Summary)
Based on: 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), 10-K (reporting date: 2018-12-29).
Financial ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | PepsiCo Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Adjusted debt to equity | A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. | PepsiCo Inc. adjusted debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | PepsiCo Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022. |
PepsiCo Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Total Asset Turnover
Based on: 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), 10-K (reporting date: 2018-12-29).
2022 Calculations
1 Total asset turnover = Net revenue ÷ Total assets
= 86,392 ÷ 92,187 = 0.94
2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 86,392 ÷ 92,187 = 0.94
Activity ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | PepsiCo Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Adjusted Debt to Equity
Based on: 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), 10-K (reporting date: 2018-12-29).
2022 Calculations
1 Debt to equity = Total debt ÷ Total PepsiCo shareholders’ equity
= 39,071 ÷ 17,149 = 2.28
2 Adjusted debt to equity = Adjusted total debt ÷ Total PepsiCo shareholders’ equity
= 41,487 ÷ 17,149 = 2.42
Solvency ratio | Description | The company |
---|---|---|
Adjusted debt-to-equity | A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. | PepsiCo Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Adjusted Return on Assets (ROA)
Based on: 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), 10-K (reporting date: 2018-12-29).
2022 Calculations
1 ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 8,910 ÷ 92,187 = 9.67%
2 Adjusted ROA = 100 × Net income attributable to PepsiCo ÷ Adjusted total assets
= 100 × 8,910 ÷ 92,187 = 9.67%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | PepsiCo Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022. |