Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
PepsiCo Inc., profitability ratios
Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | PepsiCo Inc.’s gross profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | PepsiCo Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | PepsiCo Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | PepsiCo Inc.’s ROE deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | PepsiCo Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |
Gross Profit Margin
PepsiCo Inc., gross profit margin calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 38,575 | 37,029 | 35,280 | 34,740 | 34,590 | |
| Net revenue | 70,372 | 67,161 | 64,661 | 63,525 | 62,799 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 54.82% | 55.13% | 54.56% | 54.69% | 55.08% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 49.80% | 50.62% | 48.31% | 46.73% | 45.02% | |
| Coca-Cola Co. | 59.31% | 60.77% | 63.05% | 62.56% | 60.67% | |
| Mondelēz International Inc. | 39.30% | 39.96% | 39.91% | 38.87% | 39.07% | |
| Philip Morris International Inc. | 25.15% | 24.76% | 23.64% | 23.45% | 23.07% | |
Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15).
1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 38,575 ÷ 70,372 = 54.82%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | PepsiCo Inc.’s gross profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Operating Profit Margin
PepsiCo Inc., operating profit margin calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | 10,080 | 10,291 | 10,110 | 10,509 | 9,785 | |
| Net revenue | 70,372 | 67,161 | 64,661 | 63,525 | 62,799 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 14.32% | 15.32% | 15.64% | 16.54% | 15.58% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 41.57% | 41.12% | 35.94% | 37.36% | 34.04% | |
| Coca-Cola Co. | 27.25% | 27.06% | 27.31% | 21.18% | 20.61% | |
| Mondelēz International Inc. | 14.50% | 14.86% | 12.77% | 13.54% | 9.91% | |
| Philip Morris International Inc. | 15.34% | 13.51% | 14.25% | 14.73% | 14.43% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 19.59% | 19.32% | 18.72% | 18.63% | 17.54% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 9.01% | 8.39% | 9.08% | 9.55% | 9.50% | |
Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15).
1 2020 Calculation
Operating profit margin = 100 × Operating profit ÷ Net revenue
= 100 × 10,080 ÷ 70,372 = 14.32%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | PepsiCo Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Net Profit Margin
PepsiCo Inc., net profit margin calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 7,120 | 7,314 | 12,515 | 4,857 | 6,329 | |
| Net revenue | 70,372 | 67,161 | 64,661 | 63,525 | 62,799 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 10.12% | 10.89% | 19.35% | 7.65% | 10.08% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 17.08% | -5.15% | 27.45% | 39.97% | 55.31% | |
| Coca-Cola Co. | 23.47% | 23.94% | 20.20% | 3.52% | 15.59% | |
| Mondelēz International Inc. | 13.37% | 14.96% | 13.03% | 11.28% | 6.40% | |
| Philip Morris International Inc. | 10.59% | 9.22% | 9.91% | 7.73% | 9.30% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 13.33% | 11.14% | 16.34% | 11.06% | 15.44% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 6.51% | 4.48% | 6.62% | 6.49% | 7.28% | |
Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15).
1 2020 Calculation
Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × 7,120 ÷ 70,372 = 10.12%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | PepsiCo Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Return on Equity (ROE)
PepsiCo Inc., ROE calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 7,120 | 7,314 | 12,515 | 4,857 | 6,329 | |
| Total PepsiCo shareholders’ equity | 13,454 | 14,786 | 14,518 | 10,889 | 11,095 | |
| Profitability Ratio | ||||||
| ROE1 | 52.92% | 49.47% | 86.20% | 44.60% | 57.04% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Altria Group Inc. | 157.34% | -20.78% | 47.09% | 66.48% | 111.50% | |
| Coca-Cola Co. | 40.14% | 46.99% | 37.89% | 7.31% | 28.30% | |
| Mondelēz International Inc. | 12.89% | 14.19% | 13.19% | 11.19% | 6.59% | |
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 61.15% | 46.68% | 62.57% | 44.08% | 60.14% | |
| ROE, Industry | ||||||
| Consumer Staples | 34.01% | 22.74% | 30.65% | 29.30% | 31.42% | |
Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15).
1 2020 Calculation
ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo shareholders’ equity
= 100 × 7,120 ÷ 13,454 = 52.92%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | PepsiCo Inc.’s ROE deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Return on Assets (ROA)
PepsiCo Inc., ROA calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 7,120 | 7,314 | 12,515 | 4,857 | 6,329 | |
| Total assets | 92,918 | 78,547 | 77,648 | 79,804 | 74,129 | |
| Profitability Ratio | ||||||
| ROA1 | 7.66% | 9.31% | 16.12% | 6.09% | 8.54% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Altria Group Inc. | 9.42% | -2.62% | 12.51% | 23.66% | 31.00% | |
| Coca-Cola Co. | 8.87% | 10.33% | 7.73% | 1.42% | 7.48% | |
| Mondelēz International Inc. | 5.24% | 6.00% | 5.39% | 4.63% | 2.70% | |
| Philip Morris International Inc. | 17.98% | 16.76% | 19.88% | 14.05% | 18.91% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 9.09% | 8.08% | 11.66% | 7.98% | 11.68% | |
| ROA, Industry | ||||||
| Consumer Staples | 8.42% | 6.08% | 8.97% | 8.64% | 9.73% | |
Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15).
1 2020 Calculation
ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 7,120 ÷ 92,918 = 7.66%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | PepsiCo Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |