PepsiCo Inc (PEP)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 12,155,000 | 11,189,000 | 10,503,000 | 8,865,000 | 11,576,000 | 13,515,000 | 13,406,000 | 14,589,000 | 11,623,000 | 11,604,000 | 11,427,000 | 10,577,000 | 10,142,000 | 9,940,000 | 9,742,000 | 9,477,000 | 9,726,000 | 10,234,000 | 10,549,000 | 10,364,000 |
| Long-term debt | US$ in thousands | 37,595,000 | — | — | — | 35,657,000 | — | — | — | 36,026,000 | — | — | — | 40,370,000 | — | — | — | 29,148,000 | — | — | 28,295,000 |
| 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 |
| Return on total capital | 21.67% | 59.50% | 59.39% | 52.02% | 21.92% | 71.22% | 72.26% | 80.15% | 22.32% | 73.11% | 74.69% | 75.84% | 18.84% | 73.72% | 77.99% | 70.38% | 22.14% | 72.43% | 74.28% | 24.21% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 significant fluctuations over the periods examined. The return on total capital ranged from a low of 18.84% in March 2021 to a high of 80.15% in March 2022. The company's return on total capital averaged around 60%, indicating that the company is generating a strong return on the total capital invested in its operations.
The variability in the return on total capital could be attributed to factors such as changes in profitability, asset efficiency, and capital structure over the periods analyzed. The higher returns recorded in some periods suggest that PepsiCo has effectively utilized its total capital to generate profits, while the lower returns may indicate challenges or fluctuations in the company's operations during those periods.
Overall, PepsiCo's return on total capital reflects its ability to generate profits relative to the total capital employed in its business activities. Investors and stakeholders may find this metric useful in assessing the company's performance and efficiency in utilizing its resources to create value.
Peer comparison
Dec 31, 2023