PepsiCo Inc (PEP)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 7, 2019 | Mar 23, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 12,133,000 | 12,865,000 | 12,585,000 | 12,515,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 14,786,000 | 14,129,000 | 14,202,000 | 14,518,000 |
| ROE | 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% | 82.06% | 91.05% | 88.61% | 86.20% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $9,074,000K ÷ $18,503,000K
= 49.04%
PepsiCo Inc's return on equity (ROE) has displayed variability over the past few years, with fluctuations observed from as low as 38.62% in March 2023 to as high as 91.05% in September 2018. The ROE indicates how effectively the company is utilizing shareholder equity to generate profits, and a higher ROE generally suggests efficient use of capital.
The downward trend seen in recent quarters, such as the decrease from 51.29% in September 2021 to 44.08% in September 2023, may raise concerns about the company's ability to generate returns on equity. However, it is important to note that the ROE has remained above 40% consistently, indicating that PepsiCo has generally been effective in generating profits relative to shareholders' equity.
It is essential for investors and stakeholders to delve deeper into the financial performance and operational aspects of PepsiCo to understand the drivers behind the fluctuations in ROE. Monitoring trends in ROE over time can provide valuable insights into the company's financial health and its ability to create value for shareholders.
Peer comparison
Dec 31, 2023