PepsiCo Inc (PEP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 12,887,000 | 11,986,000 | 11,512,000 | 11,162,000 | 10,080,000 |
| Total assets | US$ in thousands | 99,467,000 | 100,495,000 | 92,187,000 | 92,377,000 | 92,918,000 |
| Operating ROA | 12.96% | 11.93% | 12.49% | 12.08% | 10.85% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $12,887,000K ÷ $99,467,000K
= 12.96%
PepsiCo Inc's operating return on assets (Operating ROA) has shown a positive trend over the past five years. The ratio increased from 10.85% on December 31, 2020, to 12.96% on December 31, 2024. This indicates the company's ability to generate profits from its assets has been improving over the period.
The year-over-year fluctuations in the Operating ROA show some variability, with the ratio reaching its peak at 12.96% in 2024, after experiencing fluctuations between 2020 and 2023. This variability could be due to changes in the company's operating efficiency, asset utilization, or profitability.
Overall, PepsiCo's increasing Operating ROA suggests that the company has been effectively utilizing its assets to generate operating profits. It indicates management's efficiency in utilizing resources to generate earnings, which is a positive sign for investors and stakeholders. However, further analysis of the company's operating performance and financial health would provide a more comprehensive understanding of PepsiCo's overall financial strength and performance.
Peer comparison
Dec 31, 2024