PepsiCo Inc (PEP)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 9,074,000 | 8,910,000 | 7,618,000 | 7,120,000 | 7,314,000 |
| Total stockholders’ equity | US$ in thousands | 18,503,000 | 17,149,000 | 16,043,000 | 13,454,000 | 14,786,000 |
| ROE | 49.04% | 51.96% | 47.48% | 52.92% | 49.47% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $9,074,000K ÷ $18,503,000K
= 49.04%
PepsiCo Inc's return on equity (ROE) has exhibited fluctuations over the past five years, with values ranging from 47.48% to 52.92%. In 2023, the ROE stands at 49.04%, showing a slight decrease compared to the previous year. This decline in ROE could imply that the company's ability to generate profits from its shareholders' equity has weakened slightly. However, it is worth noting that the ROE levels have generally been robust, consistently above 47% in recent years, indicating efficient utilization of shareholder funds to generate profits. Further analysis, considering factors such as the company's profitability, asset utilization, and financial leverage, would provide a more comprehensive understanding of PepsiCo's ROE performance.
Peer comparison
Dec 31, 2023