PepsiCo Inc (PEP)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,986,000 | 11,512,000 | 11,162,000 | 10,080,000 | 10,291,000 |
| Total assets | US$ in thousands | 100,495,000 | 92,187,000 | 92,377,000 | 92,918,000 | 78,547,000 |
| Operating ROA | 11.93% | 12.49% | 12.08% | 10.85% | 13.10% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $11,986,000K ÷ $100,495,000K
= 11.93%
To analyze PepsiCo Inc's operating return on assets (operating ROA) over the past five years, we can see a trend of fluctuation in the performance metric. The operating ROA decreased from 13.10% in 2019 to 10.85% in 2020, reflecting a decline in profitability. However, there was an improvement in 2021, with the operating ROA increasing to 12.08%. Subsequently, in 2022, there was a slight increase to 12.49%.
In 2023, PepsiCo Inc's operating ROA decreased to 11.93%, indicating a slight decline in profitability compared to the previous year. Overall, the company has shown variability in its operating ROA performance over the past five years, with fluctuations reflecting changes in operational efficiency and asset utilization.
It is essential for investors and stakeholders to closely monitor these fluctuations to assess the company's ability to generate profits from its assets efficiently. Additionally, management should focus on strategies to improve operational performance and maintain a stable and sustainable operating ROA in the future.
Peer comparison
Dec 31, 2023