Keurig Dr Pepper Inc (KDP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.62% | 55.52% | 54.93% | 58.27% | 60.40% |
| Operating profit margin | 22.37% | 19.75% | 22.79% | 22.28% | 22.65% |
| Pretax margin | 19.32% | 13.04% | 22.04% | 15.75% | 16.13% |
| Net profit margin | 15.28% | 10.89% | 16.90% | 11.90% | 11.94% |
Keurig Dr Pepper Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which helps assess how well the company is generating revenue from its core operations after accounting for the cost of goods sold, has ranged from 52.10% in 2022 to 57.03% in 2019, with a slight dip to 54.54% in 2023.
The operating profit margin indicates the company's efficiency in managing its operating expenses relative to its revenue. Keurig Dr Pepper Inc's operating profit margin has fluctuated between 19.05% in 2022 and 22.27% in 2021, showing a variation in operating efficiency over the years.
The pretax margin, representing the company's profitability before taxes, has ranged from 12.23% in 2022 to 22.06% in 2021. The significant increase in 2021 relative to the preceding years suggests improved profitability before considering tax implications.
Lastly, the net profit margin reflects the company's overall profitability after all expenses have been deducted, including taxes. Keurig Dr Pepper Inc's net profit margin has varied from 10.22% in 2022 to 16.92% in 2021, indicating fluctuations in bottom-line profitability over the past five years.
Overall, while Keurig Dr Pepper Inc has shown some variability in its profitability ratios, the company has generally maintained healthy margins over the years, with some fluctuations possibly influenced by changes in revenue, costs, and operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.12% | 5.03% | 5.72% | 4.98% | 4.80% |
| Return on assets (ROA) | 4.18% | 2.77% | 4.24% | 2.66% | 2.53% |
| Return on total capital | 9.13% | 6.67% | 9.03% | 6.74% | 6.51% |
| Return on equity (ROE) | 8.49% | 5.72% | 8.59% | 5.56% | 5.39% |
Keurig Dr Pepper Inc has shown a positive trend in its profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has been gradually increasing from 4.80% in 2019 to 6.08% in 2023, indicating that the company is becoming more efficient in generating operating profits from its assets.
Similarly, the Return on Assets (ROA) has also improved consistently, rising from 2.53% in 2019 to 4.18% in 2023. This suggests that Keurig Dr Pepper is effectively utilizing its assets to generate profits for the company and its shareholders.
The Return on Total Capital has also shown a positive trend, increasing from 6.26% in 2019 to 8.07% in 2023. This indicates that the company has been able to generate higher returns in relation to its total capital employed, reflecting good financial performance and efficient use of resources.
Lastly, the Return on Equity (ROE) has been on an upward trajectory, reaching 8.49% in 2023 from 5.39% in 2019. This suggests that the company has been successful in generating higher returns for its shareholders over the years.
Overall, Keurig Dr Pepper Inc's profitability ratios demonstrate a consistent improvement in operational efficiency, asset utilization, capital management, and shareholder value creation over the last five years.