Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

PepsiCo Inc., profitability ratios

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 deteriorated from 2016 to 2017 and from 2017 to 2018.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	PepsiCo Inc.’s operating profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	PepsiCo Inc.’s net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	PepsiCo Inc.’s ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
ROA	A profitability ratio calculated as net income divided by total assets.	PepsiCo Inc.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

PepsiCo Inc., gross profit margin calculation, comparison to benchmarks

		Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
	Selected Financial Data (USD $ in millions)
	Gross profit
	Net revenue
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Coca-Cola Co.

2018 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × hidden ÷ hidden = hidden

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 deteriorated from 2016 to 2017 and from 2017 to 2018.

PepsiCo Inc., operating profit margin calculation, comparison to benchmarks

		Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
	Selected Financial Data (USD $ in millions)
	Operating profit
	Net revenue
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Coca-Cola Co.
	Operating Profit Margin, Sector
	Beverages
	Operating Profit Margin, Industry
	Consumer Goods

2018 Calculations

¹ Operating profit margin = 100 × Operating profit ÷ Net revenue
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	PepsiCo Inc.’s operating profit margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

PepsiCo Inc., net profit margin calculation, comparison to benchmarks

		Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
	Selected Financial Data (USD $ in millions)
	Net income attributable to PepsiCo
	Net revenue
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Coca-Cola Co.
	Net Profit Margin, Sector
	Beverages
	Net Profit Margin, Industry
	Consumer Goods

2018 Calculations

¹ Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	PepsiCo Inc.’s net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

PepsiCo Inc., ROE calculation, comparison to benchmarks

		Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
	Selected Financial Data (USD $ in millions)
	Net income attributable to PepsiCo
	Total PepsiCo shareholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Coca-Cola Co.
	ROE, Sector
	Beverages
	ROE, Industry
	Consumer Goods

2018 Calculations

¹ ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo shareholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	PepsiCo Inc.’s ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

PepsiCo Inc., ROA calculation, comparison to benchmarks

		Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
	Selected Financial Data (USD $ in millions)
	Net income attributable to PepsiCo
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Coca-Cola Co.
	ROA, Sector
	Beverages
	ROA, Industry
	Consumer Goods

2018 Calculations

¹ ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	PepsiCo Inc.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

	PepsiCo Inc.	Other companies (not purchased previously)
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Relative Valuation
Discounted Cash Flow (DCF) Valuation
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Long-term Trends
Analysis
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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
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PepsiCo Inc. (PEP)

Profitability Analysis