PepsiCo Inc (PEP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.55% | 54.21% | 53.03% | 53.35% | 54.82% |
| Operating profit margin | 14.03% | 13.10% | 13.33% | 14.04% | 14.32% |
| Pretax margin | 12.95% | 12.39% | 12.31% | 12.28% | 12.81% |
| Net profit margin | 10.43% | 9.92% | 10.31% | 9.59% | 10.12% |
PepsiCo Inc's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin: The gross profit margin, which indicates the percentage of revenue that exceeds the cost of goods sold, has ranged from 53.03% to 54.82% during this period. There was a slight decrease in 2021 and 2022, but it started to increase again in 2023 and 2024.
2. Operating Profit Margin: The operating profit margin reflects the percentage of revenue that remains after deducting operating expenses. PepsiCo's operating profit margin has fluctuated between 13.10% and 14.32%. There was a significant drop in 2022, but it recovered in the following years.
3. Pretax Margin: The pretax margin, which shows the percentage of revenue that remains after deducting all operating expenses and before taxes, has been relatively stable, ranging from 12.28% to 12.95%. This indicates consistent management of operating costs and expenses.
4. Net Profit Margin: The net profit margin, representing the percentage of revenue that remains as net income after all expenses and taxes are deducted, has varied between 9.59% and 10.43%. There is some volatility in the net profit margin, with a slight increase observed in 2022 and 2024.
Overall, while there have been fluctuations in PepsiCo's profitability ratios, the company has generally maintained healthy margins, indicating efficient cost management and the ability to generate profits relative to its revenue.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.96% | 11.93% | 12.49% | 12.08% | 10.85% |
| Return on assets (ROA) | 9.63% | 9.03% | 9.67% | 8.25% | 7.66% |
| Return on total capital | 23.19% | 21.67% | 21.92% | 22.32% | 18.84% |
| Return on equity (ROE) | 53.09% | 49.04% | 51.96% | 47.48% | 52.92% |
Based on the provided data, we can observe the following trends in PepsiCo Inc's profitability ratios:
1. Operating Return on Assets (Operating ROA) has shown a consistent upward trend from 10.85% in December 2020 to 12.96% in December 2024. This indicates that the company has been able to generate more operating income relative to its total assets over the years.
2. Return on Assets (ROA) has also displayed a positive trend, increasing from 7.66% in December 2020 to 9.63% in December 2024. This suggests that PepsiCo has become more efficient in generating profits from its assets.
3. Return on Total Capital has shown an overall increasing trend, indicating efficient utilization of both equity and debt financing. The ratio has grown from 18.84% in December 2020 to 23.19% in December 2024.
4. Return on Equity (ROE) demonstrates the company's ability to generate profits for its shareholders. While there have been fluctuations, the ratio has generally maintained an upward trajectory, rising from 52.92% in December 2020 to 53.09% in December 2024.
Overall, the trend in PepsiCo's profitability ratios reflects improving operational efficiency and effective utilization of capital resources over the years, translating into increased returns for both investors and the company.