Microsoft Excel LibreOffice Calc

PepsiCo Inc. (PEP)


Return on Capital (ROC)

Difficulty: Advanced

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

PepsiCo Inc., ROIC calculation

Microsoft Excel LibreOffice Calc
Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015 Dec 27, 2014
Selected Financial Data (USD $ in millions)
Net operating profit after taxes (NOPAT)1 9,546  4,673  7,328  6,105  6,991 
Invested capital2 60,452  57,590  59,304  60,167  59,168 
Ratio
ROIC3 15.79% 8.11% 12.36% 10.15% 11.82%

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

2018 Calculations

1 NOPAT. See Details »

2 Invested capital. See Details »

3 ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 9,546 ÷ 60,452 = 15.79%

Ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. PepsiCo Inc.’s ROIC deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.