Stock Analysis on Net

Keurig Dr Pepper Inc. (NASDAQ:KDP)

This company has been moved to the archive! The financial data has not been updated since July 28, 2022.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Keurig Dr Pepper Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,588 1,786 1,753 903
Invested capital2 44,109 43,835 44,138 44,635
Performance Ratio
ROIC3 5.87% 4.08% 3.97% 2.02%
Benchmarks
ROIC, Competitors4
Altria Group Inc. 6.66% 12.64% -1.13%
Coca-Cola Co. 13.95% 11.43% 11.99%
PepsiCo Inc. 13.79% 12.03% 14.37%
Philip Morris International Inc. 34.81% 28.01% 26.60%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,588 ÷ 44,109 = 5.87%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Keurig Dr Pepper Inc. ROIC improved from 2019 to 2020 and from 2020 to 2021.

Decomposition of ROIC

Keurig Dr Pepper Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2021 5.87% = 26.19% × 0.29 × 77.93%
Dec 31, 2020 4.08% = 20.64% × 0.27 × 74.49%
Dec 31, 2019 3.97% = 21.20% × 0.25 × 74.34%
Dec 31, 2018 2.02% = 17.26% × 0.17 × 70.32%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2021 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Keurig Dr Pepper Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,588 1,786 1,753 903
Add: Cash operating taxes2 733 612 605 381
Net operating profit before taxes (NOPBT) 3,321 2,398 2,358 1,284
 
Net sales 12,683 11,618 11,120 7,442
Profitability Ratio
OPM3 26.19% 20.64% 21.20% 17.26%
Benchmarks
OPM, Competitors4
Altria Group Inc. 19.17% 30.97% 7.75%
Coca-Cola Co. 33.91% 32.86% 29.41%
PepsiCo Inc. 14.80% 14.87% 15.55%
Philip Morris International Inc. 41.44% 40.45% 36.52%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 3,321 ÷ 12,683 = 26.19%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Keurig Dr Pepper Inc. OPM deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Turnover of Capital (TO)

Keurig Dr Pepper Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net sales 12,683 11,618 11,120 7,442
Invested capital1 44,109 43,835 44,138 44,635
Efficiency Ratio
TO2 0.29 0.27 0.25 0.17
Benchmarks
TO, Competitors3
Altria Group Inc. 0.78 0.63 0.59
Coca-Cola Co. 0.48 0.44 0.51
PepsiCo Inc. 1.14 1.00 1.13
Philip Morris International Inc. 1.07 0.90 0.95

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Invested capital. See details »

2 2021 Calculation
TO = Net sales ÷ Invested capital
= 12,683 ÷ 44,109 = 0.29

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Keurig Dr Pepper Inc. TO improved from 2019 to 2020 and from 2020 to 2021.

Effective Cash Tax Rate (CTR)

Keurig Dr Pepper Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,588 1,786 1,753 903
Add: Cash operating taxes2 733 612 605 381
Net operating profit before taxes (NOPBT) 3,321 2,398 2,358 1,284
Tax Rate
CTR3 22.07% 25.51% 25.66% 29.68%
Benchmarks
CTR, Competitors4
Altria Group Inc. 55.22% 35.24% 124.76%
Coca-Cola Co. 14.55% 20.29% 19.32%
PepsiCo Inc. 18.12% 19.44% 18.26%
Philip Morris International Inc. 21.71% 22.89% 23.53%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 733 ÷ 3,321 = 22.07%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Keurig Dr Pepper Inc. CTR decreased from 2019 to 2020 and from 2020 to 2021.