Keurig Dr Pepper Inc (KDP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.99% | 56.62% | 55.52% | 54.93% | 58.27% |
| Operating profit margin | 17.01% | 22.37% | 19.75% | 22.79% | 22.28% |
| Pretax margin | 12.56% | 19.32% | 13.04% | 22.04% | 15.75% |
| Net profit margin | 9.46% | 15.28% | 10.89% | 16.90% | 11.90% |
Keurig Dr Pepper Inc's profitability ratios have shown fluctuations over the years. The gross profit margin, which indicates the efficiency of the company in producing its products after deducting the cost of goods sold, decreased from 58.27% in 2020 to 54.93% in 2021 and then slightly improved to 55.52% in 2022, further increasing to 56.62% in 2023, but slightly dropping to 55.99% in 2024.
The operating profit margin, which reflects the company's ability to generate profit from its core operations, increased from 22.28% in 2020 to 22.79% in 2021, then decreased to 19.75% in 2022, before recovering to 22.37% in 2023 and then dropping to 17.01% in 2024.
The pretax margin, representing the company's profit before taxes relative to its total revenue, rose significantly from 15.75% in 2020 to 22.04% in 2021, but decreased to 13.04% in 2022. It then improved to 19.32% in 2023 before falling to 12.56% in 2024.
The net profit margin, which shows the company's net income as a percentage of total revenue, increased from 11.90% in 2020 to 16.90% in 2021. However, it then declined to 10.89% in 2022, increased to 15.28% in 2023, and dropped to 9.46% in 2024.
Overall, Keurig Dr Pepper Inc's profitability ratios have displayed some volatility, with various margins fluctuating over the years. It is crucial for the company to analyze the underlying reasons for these changes and implement strategies to maintain or improve profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.85% | 6.12% | 5.03% | 5.72% | 4.98% |
| Return on assets (ROA) | 2.70% | 4.18% | 2.77% | 4.24% | 2.66% |
| Return on total capital | 6.97% | 9.13% | 6.67% | 9.03% | 6.74% |
| Return on equity (ROE) | 5.94% | 8.49% | 5.72% | 8.59% | 5.56% |
Keurig Dr Pepper Inc's profitability ratios have shown some fluctuations over the years.
1. Operating return on assets (Operating ROA) has varied between 4.85% and 6.12% during the period under consideration, with the highest value in 2023. This ratio indicates the company's ability to generate profits from its operational assets.
2. Return on assets (ROA) has fluctuated between 2.66% and 4.24%, with the highest value observed in 2021. ROA reflects the company's overall ability to generate profits from its total assets.
3. Return on total capital has ranged from 6.67% to 9.13%, with the highest value recorded in 2023. This metric shows how efficiently the company is using all of its capital to generate profits.
4. Return on equity (ROE) has varied between 5.56% and 8.59%, with the highest value observed in 2021. ROE indicates the company's ability to generate profits from shareholder equity.
Overall, while there have been fluctuations in Keurig Dr Pepper Inc's profitability ratios, the company has generally shown a decent ability to generate profits from its assets, total capital, and equity over the years. Investors and stakeholders should continue to monitor these ratios to assess the company's financial performance and stability.