PepsiCo Inc (PEP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 9,578,000 | 9,074,000 | 8,910,000 | 7,618,000 | 7,120,000 |
| Total assets | US$ in thousands | 99,467,000 | 100,495,000 | 92,187,000 | 92,377,000 | 92,918,000 |
| ROA | 9.63% | 9.03% | 9.67% | 8.25% | 7.66% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $9,578,000K ÷ $99,467,000K
= 9.63%
PepsiCo Inc's return on assets (ROA) has shown a positive trend over the past five years, with values increasing from 7.66% in December 2020 to 9.63% in December 2024. This indicates that the company has been effectively generating profits relative to its total assets. The gradual improvement in ROA suggests that PepsiCo has been successful in utilizing its assets efficiently to generate returns for its stakeholders. However, the slight decrease in ROA in December 2023 followed by an increase in December 2024 may warrant further investigation into the factors influencing the company's profitability and asset management strategies. Overall, the upward trajectory of PepsiCo's ROA demonstrates the company's ability to generate profits from its asset base.
Peer comparison
Dec 31, 2024