Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Analysis of Profitability Ratios

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

PepsiCo Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 54.82% 55.13% 54.56% 54.69% 55.08%
Operating profit margin 14.32% 15.32% 15.64% 16.54% 15.58%
Net profit margin 10.12% 10.89% 19.35% 7.65% 10.08%
Return on Investment
Return on equity (ROE) 52.92% 49.47% 86.20% 44.60% 57.04%
Return on assets (ROA) 7.66% 9.31% 16.12% 6.09% 8.54%

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.