Keurig Dr Pepper Inc (KDP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,591,000 | 3,253,000 | 2,413,000 | 3,299,000 | 2,357,000 |
| Long-term debt | US$ in thousands | 12,912,000 | 9,945,000 | 11,072,000 | 11,578,000 | 11,143,000 |
| Total stockholders’ equity | US$ in thousands | 24,243,000 | 25,676,000 | 25,126,000 | 24,972,000 | 23,829,000 |
| Return on total capital | 6.97% | 9.13% | 6.67% | 9.03% | 6.74% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,591,000K ÷ ($12,912,000K + $24,243,000K)
= 6.97%
Keurig Dr Pepper Inc's return on total capital has shown fluctuations over the past five years. The ratio increased from 6.74% in December 2020 to 9.03% in December 2021, indicating an improvement in the company's ability to generate profits relative to the total capital employed. However, in the following years, there were slight declines in the return on total capital, with figures of 6.67% in December 2022 and 6.97% in December 2024. The peak was reached in December 2023, with a return on total capital of 9.13%.
Overall, the trend suggests some volatility in the company's efficiency in utilizing its total capital to generate returns. It would be important for stakeholders to monitor this ratio closely to assess the company's operational performance and capital utilization efficiency.
Peer comparison
Dec 31, 2024