PepsiCo Inc (PEP)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 12,155,000 | 11,576,000 | 11,623,000 | 10,142,000 | 10,208,000 |
| Long-term debt | US$ in thousands | 37,595,000 | 35,657,000 | 36,026,000 | 40,370,000 | 29,148,000 |
| Total stockholders’ equity | US$ in thousands | 18,503,000 | 17,149,000 | 16,043,000 | 13,454,000 | 14,786,000 |
| Return on total capital | 21.67% | 21.92% | 22.32% | 18.84% | 23.23% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $12,155,000K ÷ ($37,595,000K + $18,503,000K)
= 21.67%
PepsiCo Inc's return on total capital has shown a fluctuating trend over the past five years. In 2023, the return on total capital was 21.67%, slightly lower than the previous year's figure of 21.92% but still relatively strong. The company experienced a peak in 2021 with a return on total capital of 22.32%, indicating efficient utilization of its total capital to generate profits. In 2020, the return on total capital dipped to 18.84%, possibly due to economic challenges or internal factors impacting profitability. However, the return on total capital rebounded in 2019 to 23.23%, showcasing the company's ability to effectively deploy its capital resources for generating returns. Overall, PepsiCo Inc has demonstrated a consistent ability to generate favorable returns on its total capital, with fluctuations across the years reflecting varying market conditions and business performance.
Peer comparison
Dec 31, 2023