Keurig Dr Pepper Inc (KDP)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,253,000 | 2,413,000 | 3,299,000 | 2,357,000 | 2,348,000 |
| Long-term debt | US$ in thousands | 9,945,000 | 11,072,000 | 11,578,000 | 11,143,000 | 12,827,000 |
| Total stockholders’ equity | US$ in thousands | 25,676,000 | 25,126,000 | 24,972,000 | 23,829,000 | 23,257,000 |
| Return on total capital | 9.13% | 6.67% | 9.03% | 6.74% | 6.51% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,253,000K ÷ ($9,945,000K + $25,676,000K)
= 9.13%
Keurig Dr Pepper Inc's return on total capital has shown a positive trend over the past five years. The company's return on total capital increased from 6.26% in 2019 to 8.07% in 2023, indicating an improvement in the company's ability to generate profits from its total capital employed. This suggests that the company is becoming more efficient in utilizing its capital to generate returns for its shareholders and stakeholders. The consistent increase in return on total capital demonstrates effective management of the company's resources and operations, leading to enhanced profitability and value creation. It is essential for investors and stakeholders to monitor this metric to assess the company's financial performance and efficiency in deploying its capital effectively.
Peer comparison
Dec 31, 2023