Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

PepsiCo Inc., decomposition of ROE (quarterly data)

	ROE	ROA	Leverage

Mar 23, 2019	88.61%	16.68%	5.31
Dec 29, 2018	86.20%	16.12%	5.35
Sep 8, 2018	48.13%	6.72%	7.16
Jun 16, 2018	45.47%	5.84%	7.79
Mar 24, 2018	44.86%	5.96%	7.52
Dec 30, 2017	44.60%	6.09%	7.33
Sep 9, 2017	52.41%	8.88%	5.90
Jun 17, 2017	54.95%	8.86%	6.20
Mar 25, 2017	58.05%	9.00%	6.45
Dec 31, 2016	57.04%	8.54%	6.68
Sep 3, 2016	52.74%	8.99%	5.86
Jun 11, 2016	42.35%	7.13%	5.94
Mar 19, 2016	46.46%	7.37%	6.30
Dec 26, 2015	45.73%	7.83%	5.84
Sep 5, 2015	37.48%	7.22%	5.19
Jun 13, 2015	39.92%	9.02%	4.42
Mar 21, 2015	41.07%	9.36%	4.39
Dec 27, 2014	37.35%	9.24%	4.04
Sep 6, 2014	–	–	3.49
Jun 14, 2014	–	–	3.43
Mar 22, 2014	–	–	3.40

The primary reason for the increase in Return on Equity (ROE) over Q1 2019 is the increase in profitability measured by Return on Assets (ROA).

PepsiCo Inc., decomposition of ROE (quarterly data)

	ROE	Net Profit Margin	Asset Turnover	Leverage

Mar 23, 2019	88.61%	19.37%	0.86	5.31
Dec 29, 2018	86.20%	19.35%	0.83	5.35
Sep 8, 2018	48.13%	7.66%	0.88	7.16
Jun 16, 2018	45.47%	7.14%	0.82	7.79
Mar 24, 2018	44.86%	7.62%	0.78	7.52
Dec 30, 2017	44.60%	7.65%	0.80	7.33
Sep 9, 2017	52.41%	10.97%	0.81	5.90
Jun 17, 2017	54.95%	10.77%	0.82	6.20
Mar 25, 2017	58.05%	10.66%	0.84	6.45
Dec 31, 2016	57.04%	10.08%	0.85	6.68
Sep 3, 2016	52.74%	10.74%	0.84	5.86
Jun 11, 2016	42.35%	8.34%	0.86	5.94
Mar 19, 2016	46.46%	8.23%	0.90	6.30
Dec 26, 2015	45.73%	8.65%	0.91	5.84
Sep 5, 2015	37.48%	7.83%	0.92	5.19
Jun 13, 2015	39.92%	9.98%	0.90	4.42
Mar 21, 2015	41.07%	9.83%	0.95	4.39
Dec 27, 2014	37.35%	9.77%	0.95	4.04
Sep 6, 2014	–	–	–	3.49
Jun 14, 2014	–	–	–	3.43
Mar 22, 2014	–	–	–	3.40

The primary reason for the increase in Return on Equity (ROE) over Q1 2019 is the increase in efficiency measured by Asset Turnover.

PepsiCo Inc., decomposition of ROE (quarterly data)

	ROE	Tax Burden	Interest Burden	EBIT Margin	Asset Turnover	Leverage

Mar 23, 2019	88.61%	1.34	0.86	16.70%	0.86	5.31
Dec 29, 2018	86.20%	1.37	0.86	16.50%	0.83	5.35
Sep 8, 2018	48.13%	0.52	0.88	16.71%	0.88	7.16
Jun 16, 2018	45.47%	0.48	0.89	16.85%	0.82	7.79
Mar 24, 2018	44.86%	0.51	0.89	16.68%	0.78	7.52
Dec 30, 2017	44.60%	0.51	0.89	16.85%	0.80	7.33
Sep 9, 2017	52.41%	0.77	0.87	16.42%	0.81	5.90
Jun 17, 2017	54.95%	0.77	0.87	16.17%	0.82	6.20
Mar 25, 2017	58.05%	0.76	0.87	16.18%	0.84	6.45
Dec 31, 2016	57.04%	0.74	0.86	15.68%	0.85	6.68
Sep 3, 2016	52.74%	0.77	0.89	15.66%	0.84	5.86
Jun 11, 2016	42.35%	0.72	0.87	13.28%	0.86	5.94
Mar 19, 2016	46.46%	0.72	0.88	13.05%	0.90	6.30
Dec 26, 2015	45.73%	0.74	0.88	13.26%	0.91	5.84
Sep 5, 2015	37.48%	0.70	0.89	12.67%	0.92	5.19
Jun 13, 2015	39.92%	0.75	0.90	14.72%	0.90	4.42
Mar 21, 2015	41.07%	0.75	0.90	14.51%	0.95	4.39
Dec 27, 2014	37.35%	0.75	0.91	14.43%	0.95	4.04
Sep 6, 2014	–	–	–	–	–	3.49
Jun 14, 2014	–	–	–	–	–	3.43
Mar 22, 2014	–	–	–	–	–	3.40

The primary reason for the increase in Return on Equity (ROE) over Q1 2019 is the increase in efficiency measured by Asset Turnover.

PepsiCo Inc., decomposition of ROA (quarterly data)

	ROA	Net Profit Margin	Asset Turnover

Mar 23, 2019	16.68%	19.37%	0.86
Dec 29, 2018	16.12%	19.35%	0.83
Sep 8, 2018	6.72%	7.66%	0.88
Jun 16, 2018	5.84%	7.14%	0.82
Mar 24, 2018	5.96%	7.62%	0.78
Dec 30, 2017	6.09%	7.65%	0.80
Sep 9, 2017	8.88%	10.97%	0.81
Jun 17, 2017	8.86%	10.77%	0.82
Mar 25, 2017	9.00%	10.66%	0.84
Dec 31, 2016	8.54%	10.08%	0.85
Sep 3, 2016	8.99%	10.74%	0.84
Jun 11, 2016	7.13%	8.34%	0.86
Mar 19, 2016	7.37%	8.23%	0.90
Dec 26, 2015	7.83%	8.65%	0.91
Sep 5, 2015	7.22%	7.83%	0.92
Jun 13, 2015	9.02%	9.98%	0.90
Mar 21, 2015	9.36%	9.83%	0.95
Dec 27, 2014	9.24%	9.77%	0.95
Sep 6, 2014	–	–	–
Jun 14, 2014	–	–	–
Mar 22, 2014	–	–	–

The primary reason for the increase in Return on Assets (ROA) over Q1 2019 is the increase in Asset Turnover.

PepsiCo Inc., decomposition of ROA (quarterly data)

	ROA	Tax Burden	Interest Burden	EBIT Margin	Asset Turnover

Mar 23, 2019	16.68%	1.34	0.86	16.70%	0.86
Dec 29, 2018	16.12%	1.37	0.86	16.50%	0.83
Sep 8, 2018	6.72%	0.52	0.88	16.71%	0.88
Jun 16, 2018	5.84%	0.48	0.89	16.85%	0.82
Mar 24, 2018	5.96%	0.51	0.89	16.68%	0.78
Dec 30, 2017	6.09%	0.51	0.89	16.85%	0.80
Sep 9, 2017	8.88%	0.77	0.87	16.42%	0.81
Jun 17, 2017	8.86%	0.77	0.87	16.17%	0.82
Mar 25, 2017	9.00%	0.76	0.87	16.18%	0.84
Dec 31, 2016	8.54%	0.74	0.86	15.68%	0.85
Sep 3, 2016	8.99%	0.77	0.89	15.66%	0.84
Jun 11, 2016	7.13%	0.72	0.87	13.28%	0.86
Mar 19, 2016	7.37%	0.72	0.88	13.05%	0.90
Dec 26, 2015	7.83%	0.74	0.88	13.26%	0.91
Sep 5, 2015	7.22%	0.70	0.89	12.67%	0.92
Jun 13, 2015	9.02%	0.75	0.90	14.72%	0.90
Mar 21, 2015	9.36%	0.75	0.90	14.51%	0.95
Dec 27, 2014	9.24%	0.75	0.91	14.43%	0.95
Sep 6, 2014	–	–	–	–	–
Jun 14, 2014	–	–	–	–	–
Mar 22, 2014	–	–	–	–	–

The primary reason for the increase in Return on Assets (ROA) over Q1 2019 is the increase in efficiency measured by Asset Turnover.

PepsiCo Inc., decomposition of Net Profit Margin (quarterly data)

	Net Profit Margin	Tax Burden	Interest Burden	EBIT Margin

Mar 23, 2019	19.37%	1.34	0.86	16.70%
Dec 29, 2018	19.35%	1.37	0.86	16.50%
Sep 8, 2018	7.66%	0.52	0.88	16.71%
Jun 16, 2018	7.14%	0.48	0.89	16.85%
Mar 24, 2018	7.62%	0.51	0.89	16.68%
Dec 30, 2017	7.65%	0.51	0.89	16.85%
Sep 9, 2017	10.97%	0.77	0.87	16.42%
Jun 17, 2017	10.77%	0.77	0.87	16.17%
Mar 25, 2017	10.66%	0.76	0.87	16.18%
Dec 31, 2016	10.08%	0.74	0.86	15.68%
Sep 3, 2016	10.74%	0.77	0.89	15.66%
Jun 11, 2016	8.34%	0.72	0.87	13.28%
Mar 19, 2016	8.23%	0.72	0.88	13.05%
Dec 26, 2015	8.65%	0.74	0.88	13.26%
Sep 5, 2015	7.83%	0.70	0.89	12.67%
Jun 13, 2015	9.98%	0.75	0.90	14.72%
Mar 21, 2015	9.83%	0.75	0.90	14.51%
Dec 27, 2014	9.77%	0.75	0.91	14.43%
Sep 6, 2014	–	–	–	–
Jun 14, 2014	–	–	–	–
Mar 22, 2014	–	–	–	–

The primary reason for the increase in Net Profit Margin over Q1 2019 is the increase in operating profitability measured by EBIT Margin.

PepsiCo Inc. (PEP)

DuPont Analysis: Decomposition of ROE
Quarterly Data