PepsiCo Inc (PEP)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 9,578,000 | 9,357,000 | 9,519,000 | 9,184,000 | 9,074,000 | 8,290,000 | 7,900,000 | 6,581,000 | 8,910,000 | 9,714,000 | 9,236,000 | 10,165,000 | 7,618,000 | 8,141,000 | 8,208,000 | 7,496,000 | 7,120,000 | 7,041,000 | 6,850,000 | 6,617,000 |
| Total stockholders’ equity | US$ in thousands | 18,041,000 | 19,453,000 | 19,446,000 | 19,047,000 | 18,503,000 | 18,806,000 | 17,685,000 | 17,042,000 | 17,149,000 | 18,977,000 | 18,553,000 | 18,202,000 | 16,043,000 | 15,872,000 | 15,299,000 | 13,947,000 | 13,454,000 | 13,483,000 | 12,491,000 | 13,465,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $9,578,000K ÷ $18,041,000K
= 53.09%
Return on equity (ROE) is a key financial ratio that indicates the profitability of a company in relation to shareholders' equity. In the case of PepsiCo Inc, the ROE has fluctuated over the periods provided in the data.
From March 2021 to June 2022, PepsiCo Inc maintained a relatively stable ROE, ranging between 49.78% and 55.85%. This indicates that the company was generating consistent profitability in relation to its shareholders' equity during this period.
However, there was a noticeable decrease in ROE in the subsequent quarters, with a decline from 55.85% in March 2022 to 38.62% in March 2023. This suggests a decrease in profitability relative to shareholders' equity during this period.
There was a partial recovery in the ROE from March 2023 to December 2024, where the ratio ranged between 44.08% and 53.09%. This indicates an improvement in profitability compared to the low point in March 2023.
Overall, PepsiCo Inc's ROE has shown fluctuations over the analyzed periods, reflecting variations in the company's profitability relative to shareholders' equity. It is important for investors and stakeholders to closely monitor these changes to assess the company's financial performance and efficiency in generating returns for its shareholders.
Peer comparison
Dec 31, 2024