PepsiCo Inc (PEP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 18,041,000 | 18,503,000 | 17,149,000 | 16,043,000 | 13,454,000 |
| ROE | 53.09% | 49.04% | 51.96% | 47.48% | 52.92% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $9,578,000K ÷ $18,041,000K
= 53.09%
Based on the provided data, PepsiCo Inc's Return on Equity (ROE) has exhibited some fluctuations over the years. In December 2020, the ROE stood at 52.92%, indicating that for each dollar of shareholders' equity, the company generated a return of 52.92%.
Subsequently, the ROE decreased to 47.48% by December 31, 2021, before rebounding to 51.96% in December 2022. The ROE then decreased slightly to 49.04% by December 31, 2023, but showed an improvement to 53.09% by the end of 2024.
Overall, PepsiCo Inc's ROE performance demonstrates some variability, with a generally positive trend, suggesting that the company has been effectively utilizing shareholders' equity to generate profits and create value for its investors. However, it is important for stakeholders to monitor these fluctuations to ensure sustained profitability and value creation in the long term.
Peer comparison
Dec 31, 2024