Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Return on Capital (ROC)

Microsoft Excel

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


Return on Invested Capital (ROIC)

PepsiCo Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 10,029 9,364 9,629 8,429 8,536
Invested capital2 75,038 69,452 69,829 70,066 59,384
Performance Ratio
ROIC3 13.36% 13.48% 13.79% 12.03% 14.37%
Benchmarks
ROIC, Competitors4
Altria Group Inc. 30.30% 19.97% 6.66% 12.64% -1.13%
Coca-Cola Co. 13.03% 12.66% 13.95% 11.43% 11.99%
Monster Beverage Corp. 22.52% 21.07% 28.45% 28.60% 27.48%
Philip Morris International Inc. 17.12% 20.30% 34.81% 28.01% 26.60%

Based on: 10-K (reporting date: 2023-12-30), 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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 10,029 ÷ 75,038 = 13.36%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. PepsiCo Inc. ROIC deteriorated from 2021 to 2022 and from 2022 to 2023.

Decomposition of ROIC

PepsiCo Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 30, 2023 13.36% = 14.21% × 1.22 × 77.15%
Dec 31, 2022 13.48% = 13.92% × 1.24 × 77.88%
Dec 25, 2021 13.79% = 14.80% × 1.14 × 81.88%
Dec 26, 2020 12.03% = 14.87% × 1.00 × 80.56%
Dec 28, 2019 14.37% = 15.55% × 1.13 × 81.74%

Based on: 10-K (reporting date: 2023-12-30), 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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in efficiency measured by turnover of capital (TO) ratio.


Operating Profit Margin (OPM)

PepsiCo Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 10,029 9,364 9,629 8,429 8,536
Add: Cash operating taxes2 2,970 2,660 2,131 2,034 1,906
Net operating profit before taxes (NOPBT) 12,998 12,024 11,760 10,463 10,442
 
Net revenue 91,471 86,392 79,474 70,372 67,161
Profitability Ratio
OPM3 14.21% 13.92% 14.80% 14.87% 15.55%
Benchmarks
OPM, Competitors4
Altria Group Inc. 48.67% 34.06% 19.17% 30.97% 7.75%
Coca-Cola Co. 28.85% 29.15% 33.91% 32.86% 29.41%
Monster Beverage Corp. 28.76% 24.80% 32.28% 35.07% 33.35%
Philip Morris International Inc. 33.27% 38.54% 41.44% 40.45% 36.52%

Based on: 10-K (reporting date: 2023-12-30), 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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Net revenue
= 100 × 12,998 ÷ 91,471 = 14.21%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. PepsiCo Inc. OPM deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Turnover of Capital (TO)

PepsiCo Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Net revenue 91,471 86,392 79,474 70,372 67,161
Invested capital1 75,038 69,452 69,829 70,066 59,384
Efficiency Ratio
TO2 1.22 1.24 1.14 1.00 1.13
Benchmarks
TO, Competitors3
Altria Group Inc. 0.85 0.87 0.78 0.63 0.59
Coca-Cola Co. 0.55 0.54 0.48 0.44 0.51
Monster Beverage Corp. 0.98 1.08 1.14 1.06 1.06
Philip Morris International Inc. 0.68 0.67 1.07 0.90 0.95

Based on: 10-K (reporting date: 2023-12-30), 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).

1 Invested capital. See details »

2 2023 Calculation
TO = Net revenue ÷ Invested capital
= 91,471 ÷ 75,038 = 1.22

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. PepsiCo Inc. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Effective Cash Tax Rate (CTR)

PepsiCo Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 10,029 9,364 9,629 8,429 8,536
Add: Cash operating taxes2 2,970 2,660 2,131 2,034 1,906
Net operating profit before taxes (NOPBT) 12,998 12,024 11,760 10,463 10,442
Tax Rate
CTR3 22.85% 22.12% 18.12% 19.44% 18.26%
Benchmarks
CTR, Competitors4
Altria Group Inc. 27.15% 32.69% 55.22% 35.24% 124.76%
Coca-Cola Co. 17.54% 19.26% 14.55% 20.29% 19.32%
Monster Beverage Corp. 19.90% 21.48% 22.44% 22.94% 22.34%
Philip Morris International Inc. 24.77% 21.29% 21.71% 22.89% 23.53%

Based on: 10-K (reporting date: 2023-12-30), 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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,970 ÷ 12,998 = 22.85%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. PepsiCo Inc. CTR increased from 2021 to 2022 and from 2022 to 2023.