PepsiCo Inc (PEP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 31, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 31, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | Dec 31, 2020 | Sep 5, 2020 | Jun 13, 2020 | Mar 21, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 54.55% | 54.68% | 54.44% | 54.13% | 54.21% | 53.93% | 53.58% | 53.28% | 53.03% | 53.03% | 53.13% | 53.20% | 53.35% | 53.87% | 54.23% | 54.65% | 54.82% | 55.19% | 55.28% | 55.33% |
| Operating profit margin | 14.03% | 13.40% | 13.54% | 13.14% | 13.10% | 12.14% | 11.60% | 10.08% | 13.33% | 15.85% | 15.96% | 17.46% | 14.04% | 14.90% | 15.12% | 14.68% | 14.32% | 14.52% | 14.48% | 14.69% |
| Pretax margin | 12.95% | 12.63% | 12.80% | 12.43% | 12.39% | 11.26% | 10.69% | 9.05% | 12.31% | 14.01% | 14.13% | 15.76% | 12.28% | 13.74% | 13.84% | 13.30% | 12.81% | 12.93% | 12.87% | 13.02% |
| Net profit margin | 10.43% | 10.18% | 10.34% | 10.00% | 9.92% | 9.05% | 8.76% | 7.48% | 10.31% | 11.61% | 11.28% | 12.57% | 9.59% | 10.62% | 11.01% | 10.51% | 10.12% | 10.27% | 10.13% | 10.24% |
Based on the provided data, let's analyze the profitability ratios of PepsiCo Inc:
1. Gross Profit Margin: The gross profit margin shows the percentage of revenue that exceeds the cost of goods sold. PepsiCo's gross profit margin has been relatively stable, decreasing slightly from 55.33% in March 2020 to 54.55% in December 2024. This indicates that PepsiCo has been able to maintain a good level of profitability after accounting for its direct costs.
2. Operating Profit Margin: The operating profit margin measures the percentage of revenue that remains after all operating expenses are deducted. PepsiCo experienced fluctuations in its operating profit margin, with a significant increase from 14.69% in March 2020 to 17.46% in March 2022, followed by a decrease to 14.03% in December 2024. This suggests some variability in the efficiency of PepsiCo's operations over the years.
3. Pre-tax Margin: The pre-tax margin represents the percentage of revenue that converts into profit before taxes. PepsiCo's pre-tax margin also fluctuated, reaching its peak at 15.76% in March 2022 and then dropping to 12.95% in December 2024. This indicates that while the company has been profitable, there have been periods of lower profitability due to various factors.
4. Net Profit Margin: The net profit margin reflects the percentage of revenue that translates into net income after all expenses, including taxes. PepsiCo's net profit margin showed fluctuations as well, reaching a high of 12.57% in March 2022 and ending at 10.43% in December 2024. This suggests that the company has been able to generate a reasonable level of profit after accounting for all expenses.
In summary, PepsiCo's profitability ratios have shown variability over the years, with some periods of improved performance and others with lower profitability. It is important for investors and stakeholders to monitor these ratios to assess the company's financial health and performance over time.
Return on investment
| Dec 31, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 31, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 31, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | Dec 31, 2020 | Sep 5, 2020 | Jun 13, 2020 | Mar 21, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.96% | 12.26% | 12.52% | 12.07% | 11.93% | 11.12% | 10.90% | 9.54% | 12.49% | 14.04% | 14.03% | 15.19% | 12.08% | 12.25% | 12.21% | 11.48% | 10.85% | 10.81% | 10.94% | 11.15% |
| Return on assets (ROA) | 9.63% | 9.31% | 9.56% | 9.18% | 9.03% | 8.29% | 8.24% | 7.07% | 9.67% | 10.28% | 9.92% | 10.93% | 8.25% | 8.73% | 8.88% | 8.22% | 7.66% | 7.65% | 7.65% | 7.78% |
| Return on total capital | 23.19% | 64.17% | 64.99% | 64.27% | 21.67% | 59.50% | 59.39% | 52.02% | 21.92% | 71.22% | 72.26% | 80.15% | 22.32% | 73.11% | 74.69% | 75.84% | 18.84% | 73.72% | 77.99% | 70.38% |
| Return on equity (ROE) | 53.09% | 48.10% | 48.95% | 48.22% | 49.04% | 44.08% | 44.67% | 38.62% | 51.96% | 51.19% | 49.78% | 55.85% | 47.48% | 51.29% | 53.65% | 53.75% | 52.92% | 52.22% | 54.84% | 49.14% |
PepsiCo Inc's profitability ratios paint a picture of consistent performance over the period. The company's Operating ROA showed a positive trend, increasing from 11.15% in March 2020 to 12.96% in December 2024. This indicates the company's ability to generate profits from its assets used in operations.
The ROA also exhibited improvement, climbing from 7.78% in March 2020 to 9.63% in December 2024. This suggests that PepsiCo was able to generate higher returns on its total assets over the years.
Return on total capital, however, showed fluctuations, peaking at 80.15% in March 2022 and dropping to 23.19% in December 2024. This ratio indicates the efficiency in generating returns from both equity and debt capital invested in the company.
Furthermore, the ROE fluctuated but remained relatively strong, ranging from 38.62% in March 2023 to 53.09% in December 2024. This ratio reflects the company's ability to generate returns for its shareholders from the equity invested.
Overall, PepsiCo Inc's profitability ratios demonstrate a generally positive performance, with slight fluctuations in certain periods. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial health and performance.