Keurig Dr Pepper Inc. (NASDAQ:KDP)

Total Asset Turnover

The total asset turnover ratio showed a consistent upward trend from 0.15 in 2018 to 0.25 in 2021, indicating improved efficiency in utilizing assets to generate revenue over the period.

Current Ratio

The current ratio initially declined from 0.38 in 2018 to 0.31 in 2020, suggesting a weakening short-term liquidity position. However, in 2021, it increased significantly to 0.47, indicating a strengthened ability to meet short-term obligations.

Debt to Equity Ratio

The debt to equity ratio progressively decreased from 0.71 in 2018 to 0.50 in 2021, reflecting a reduction in the company’s reliance on debt financing relative to shareholders’ equity.

Debt to Capital Ratio

Consistent with the debt to equity trend, the debt to capital ratio declined from 0.42 in 2018 to 0.34 in 2021, signifying a gradual decrease in the proportion of debt in the company's capital structure.

Financial Leverage

Financial leverage showed a slow but steady decrease from 2.17 in 2018 to 2.03 in 2021, indicating a modest reduction in the extent to which assets are financed by debt.

Net Profit Margin

The net profit margin increased notably from 7.87% in 2018 to 16.92% in 2021, demonstrating marked improvement in profitability and operational efficiency. Although adjusted figures varied slightly, the overall trend also reflects significant profit growth.

Return on Equity (ROE)

ROE more than tripled from 2.6% in 2018 to 8.59% in 2021, indicating enhanced effectiveness in generating returns for shareholders. Adjusted ROE followed a similar upward trajectory, albeit with slightly lower values.

Return on Assets (ROA)

The ROA improved steadily from 1.2% in 2018 to 4.24% in 2021, reflecting better overall asset utilization to generate profits. Adjusted ROA also mirrors this positive trend with a slight fluctuation in 2020 before resuming growth.

Net Sales

Net sales exhibited a consistent upward trend over the four-year period. Starting at 7,442 million USD at the end of 2018, sales rose significantly to 11,120 million USD in 2019, reflecting a substantial increase. Growth continued more modestly with net sales reaching 11,618 million USD in 2020 and further increasing to 12,683 million USD by the end of 2021. This demonstrates a steady expansion in revenue generation year over year.

Total Assets

Total assets showed a slight but continuous increase over the period. From 48,918 million USD at the end of 2018, total assets edged upwards to 49,518 million USD in 2019, then to 49,779 million USD in 2020, and finally to 50,598 million USD in 2021. The growth in assets was relatively modest compared to the increase in net sales.

Reported Total Asset Turnover

The reported total asset turnover ratio demonstrated steady improvement throughout the four years. Beginning at 0.15 in 2018, it increased to 0.22 in 2019, then slightly to 0.23 in 2020, and reached 0.25 in 2021. This upward trajectory indicates enhanced efficiency in utilizing total assets to generate sales.

Adjusted Total Assets

The adjusted total assets closely mirror the total assets trend, with values starting at 49,146 million USD in 2018 and showing incremental growth each year to reach 50,563 million USD in 2021. This adjustment does not significantly alter the asset value trends over the period.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio follows the same pattern as the reported turnover, increasing from 0.15 in 2018 to 0.25 in 2021. This consistency suggests that adjustments made to total assets have maintained the same overall trend in asset utilization efficiency.

Current Assets

Current assets displayed a steady increase over the four-year period, rising from 2159 million US dollars in 2018 to 3057 million US dollars in 2021. This growth indicates an improvement in the company's short-term asset base, suggesting potentially enhanced liquidity or operational capacity.

Current Liabilities

Current liabilities increased from 5702 million US dollars in 2018 to a peak of 7694 million US dollars in 2020, before declining to 6485 million US dollars in 2021. This pattern suggests an initial accumulation of short-term obligations followed by a reduction, possibly reflecting strategic management of liabilities or debt repayment efforts in the most recent year.

Reported Current Ratio

The reported current ratio consistently remained below 1 throughout the period, indicating that current liabilities exceeded current assets. The ratio decreased from 0.38 in 2018 to 0.31 in 2020, reflecting a worsening liquidity position, but improved notably to 0.47 in 2021. Although this improvement in 2021 still indicates a tight liquidity margin, it represents a positive trend towards better coverage of short-term liabilities by current assets.

Adjusted Current Assets and Liabilities

Adjusted current assets and liabilities closely track their unadjusted counterparts, with minor differences in absolute values. Adjusted current assets increased steadily from 2167 million US dollars in 2018 to 3064 million US dollars in 2021, mirroring the trend seen in unadjusted assets. Adjusted current liabilities followed a similar pattern to reported liabilities, peaking in 2020 at 7670 million US dollars before declining to 6453 million US dollars in 2021.

Adjusted Current Ratio

The adjusted current ratio matches the reported current ratio for each period, indicating that adjustments made to assets and liabilities did not materially affect the liquidity ratio calculation. The ratio fell from 0.38 in 2018 to 0.31 in 2020, then recovered to 0.47 in 2021, reflecting an overall pattern of liquidity stress with recent improvement.

Summary of Trends

Overall, the data reveal a company experiencing liquidity challenges from 2018 to 2020, as evidenced by rising current liabilities outpacing current asset growth and resulting in decreasing current ratios. The year 2021 showed signs of recovery, with a significant increase in current assets and a reduction in liabilities leading to an improved current ratio. However, throughout the period, the current ratio remained below the standard benchmark of 1, suggesting ongoing pressure on the firm's short-term financial stability.

Total Debt

Total debt has shown a consistent downward trend over the four-year period. It decreased from 15,990 million US dollars at the end of 2018 to 12,582 million US dollars by the end of 2021, representing a steady reduction in the company's debt load.

Stockholders’ Equity

Stockholders’ equity has demonstrated a gradual increase each year, rising from 22,533 million US dollars in 2018 to 24,972 million US dollars in 2021. This indicates a strengthening in the company’s equity base over the analyzed timeline.

Reported Debt to Equity Ratio

The reported debt to equity ratio declined consistently, moving from 0.71 in 2018 to 0.50 in 2021. This trend suggests improved financial leverage, with a decreasing reliance on debt relative to equity financing.

Adjusted Total Debt

The adjusted total debt figures mirror the pattern of total debt, also showing a decline from 16,236 million US dollars at the end of 2018 to 13,266 million US dollars in 2021. This reaffirms the company’s ongoing efforts to reduce its overall debt obligations.

Adjusted Total Equity

Adjusted total equity similarly increased each year, from 28,475 million US dollars in 2018 to 30,955 million US dollars in 2021. This growth signals a continuous strengthening of the company's adjusted equity position.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio exhibits a downward trend, decreasing from 0.57 in 2018 to 0.43 in 2021. This consistent reduction indicates an improved capital structure, emphasizing a larger proportion of equity relative to debt.

The financial data reveals a consistent downward trend in the company's debt levels over the observed four-year period. Total debt decreased from $15,990 million in 2018 to $12,582 million in 2021, indicating a reduction of approximately 21%. This suggests a deliberate effort to deleverage or reduce borrowing.

Total capital figures remain relatively stable, showing a slight decline from $38,523 million to $37,554 million over the same timeframe. Despite this minor decrease, the stability in total capital reflects steady asset and equity levels without significant fluctuations.

Debt-to-capital ratios demonstrate improving leverage positions. The reported debt-to-capital ratio declined from 0.42 in 2018 to 0.34 in 2021, marking a 19% improvement. When adjusted figures are considered, the debt-to-capital ratio decreased from 0.36 to 0.30, confirming a consistent reduction in relative indebtedness when accounting for adjustments.

The adjusted total debt values follow a similar decreasing trajectory as reported debt, dropping from $16,236 million in 2018 to $13,266 million at the end of 2021. Adjusted total capital remains practically unchanged, reducing only slightly from $44,711 million to $44,221 million, reinforcing the notion of capital stability.

Overall, the data indicates a strategic move towards strengthening the balance sheet by lowering debt levels while maintaining a stable capital base. This improved capital structure reduces financial risk and may provide increased flexibility for future investments or financial obligations.

The financial data over the four-year period reveals several noteworthy trends in the company's asset base, equity position, and financial leverage metrics.

Total Assets

The total assets have exhibited a gradual increase each year, moving from $48,918 million in 2018 to $50,598 million by the end of 2021. This reflects steady growth in the company’s resource base over time.

Stockholders’ Equity

Shareholders’ equity has also risen consistently, increasing from $22,533 million in 2018 to $24,972 million in 2021. The upward trajectory indicates strengthening net worth and potentially greater retained earnings or capital contributions.

Reported Financial Leverage

The reported financial leverage ratio decreased gradually from 2.17 in 2018 to 2.03 in 2021, suggesting a slight reduction in reliance on debt relative to equity. This trend implies the company may be improving its capital structure by reducing financial risk or increasing equity financing.

Adjusted Total Assets

Adjusted total assets closely follow the trend of reported total assets, starting at $49,146 million in 2018 and reaching $50,563 million in 2021. The adjustments appear to have minimal impact on the overarching growth trend in asset size.

Adjusted Total Equity

Adjusted total equity shows a consistent upward trend, growing from $28,475 million in 2018 to $30,955 million in 2021. This adjustment leads to a higher equity base compared to reported figures, suggesting the adjustments account for elements that strengthen the equity position.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased from 1.73 in 2018 to 1.63 in 2021, mirroring the trend observed in the reported leverage ratio but at a lower absolute level. This indicates a conservative leverage profile when adjustments are considered, with a gradual reduction in leverage suggesting improved financial stability.

Overall, the data demonstrates moderate growth in both assets and equity, combined with a declining trend in financial leverage ratios. These patterns imply that the company is expanding its asset base while concurrently enhancing equity and reducing debt dependence, which may contribute to a stronger financial position and potentially lower financial risk.

The analyzed data reveals several notable financial trends over the four-year period.

Net Income Attributable to KDP

This figure demonstrates consistent growth from 2018 through 2021. It increased from $586 million in 2018 to $2,146 million in 2021, nearly quadrupling over the period. The growth rate accelerated particularly between 2020 and 2021.

Net Sales

Net sales show a steady upward trajectory across the years. Starting at $7,442 million in 2018, they rose to $12,683 million in 2021, indicating robust revenue expansion. The increase from 2018 to 2019 was especially significant, followed by continued but more moderate growth in subsequent years.

Reported Net Profit Margin

The reported net profit margin improved progressively, moving from 7.87% in 2018 to 16.92% in 2021. This suggests enhancing profitability efficiency, with the most pronounced margin expansion recorded in the final year.

Adjusted Net Income Including Non-controlling Interest

Adjusted net income fluctuated in the early years, starting at $305 million in 2018, surging to $1,452 million in 2019, then dipping slightly to $1,260 million in 2020 before rising again to $2,067 million in 2021. This pattern indicates some variability likely due to adjustments but ultimately reflects strong earnings growth by 2021.

Adjusted Net Profit Margin

The adjusted net profit margin mirrored the fluctuations observed in adjusted net income. It rose sharply from 4.1% in 2018 to 13.06% in 2019, declined to 10.85% in 2020, and then increased strongly to 16.3% in 2021. The overall trend reflects improved profitability when adjusted for non-controlling interests but with some year-to-year variations.

Overall, the data indicates a positive performance trend characterized by growing net sales, sharply increased net income, and improving profit margins, especially by the end of the period. The fluctuations in adjusted metrics suggest some variations possibly related to one-time items or accounting adjustments, but the general trajectory confirms enhanced operational efficiency and profitability.

Net Income Attributable to KDP

There is a clear upward trend in net income over the four-year period. Starting from 586 million US dollars in 2018, net income more than doubled to 1254 million in 2019. The positive momentum continued, albeit at a slower pace, reaching 1325 million in 2020. A substantial increase occurred in 2021, with net income rising sharply to 2146 million US dollars. This indicates improving profitability and effective management of the company’s operations over time.

Stockholders’ Equity

Stockholders’ equity shows steady growth across the years under review. It increased from 22,533 million US dollars at the end of 2018 to 24,972 million by the end of 2021. Although the growth rate is moderate compared to net income, the consistent increase indicates ongoing retention of earnings and capital accumulation, reflecting a stable financial foundation.

Reported Return on Equity (ROE)

Reported ROE exhibits a significant improvement, rising from 2.6% in 2018 to 8.59% in 2021. This improvement reflects enhanced efficiency in utilizing shareholder equity to generate profits. The ROE nearly doubled between 2018 and 2019, then maintained incremental gains through to 2021. The upward trajectory aligns with the rising net income and equity figures, highlighting improved returns for shareholders.

Adjusted Net Income Including Non-controlling Interest

The adjusted net income shows more volatility than the reported net income. It started at 305 million US dollars in 2018 and increased sharply to 1452 million in 2019. However, there was a decline in 2020 to 1260 million, followed by a recovery to 2067 million in 2021. This pattern suggests that certain non-operational or irregular items may have influenced profitability in 2020, but the overall trend remains positive by 2021.

Adjusted Total Equity

Adjusted total equity demonstrates gradual growth similar to stockholders’ equity. It rose from 28,475 million US dollars in 2018 to 30,955 million in 2021. The steady increase in adjusted equity supports the company’s capacity to absorb fluctuations in income and maintain a strong capital base.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE follows a pattern akin to the adjusted net income, starting at a low point of 1.07% in 2018 and increasing to 4.96% in 2019. It then decreased to 4.22% in 2020 before rebounding to 6.68% in 2021. The fluctuations indicate periods of varying operational performance when considering adjustments, but the overall direction is upward, signifying improving profitability in relation to adjusted equity.

The financial data reveal several key trends in the company's profitability and asset utilization over the four-year period under review.

Net Income Attributable to the Company

The net income attributable to the company demonstrated a consistent upward trajectory. Starting at 586 million US dollars in 2018, it more than doubled by 2019 to 1,254 million US dollars. This was followed by a moderate increase to 1,325 million US dollars in 2020 and a more substantial rise to 2,146 million US dollars in 2021.

Total Assets

Total assets showed a gradual increase from 48,918 million US dollars in 2018 to 50,598 million US dollars in 2021. The asset base remained relatively stable with steady, albeit modest, growth each year.

Reported Return on Assets (ROA)

The reported ROA improved significantly over the period, beginning at 1.2% in 2018 and rising to 4.24% in 2021. This indicates enhanced efficiency in generating earnings from the asset base over time, with a particularly marked improvement between 2020 and 2021.

Adjusted Net Income Including Non-controlling Interest

Adjusted net income showed a substantial increase from 305 million US dollars in 2018 to 1,452 million US dollars in 2019. However, it declined to 1,260 million US dollars in 2020 before rebounding to 2,067 million US dollars in 2021. This fluctuation may reflect one-off items or adjustments that influenced net income during the period.

Adjusted Total Assets

Adjusted total assets mirrored the trend of total assets, slightly declining from 49,146 million US dollars in 2018 to 49,498 million US dollars in 2019, then trending upwards thereafter to 50,563 million US dollars in 2021.

Adjusted Return on Assets (Adjusted ROA)

The adjusted ROA followed a pattern similar to the reported ROA, increasing notably from 0.62% in 2018 to a peak of 2.93% in 2019. It then declined slightly to 2.53% in 2020 before rising again to 4.09% in 2021. This indicates overall improvement in operational efficiency after excluding non-controlling interests and other adjustments, despite some year-to-year variation.

Overall, the data demonstrates an improving profitability trend and enhanced asset utilization efficiency. Both reported and adjusted metrics reveal that the company has increased its capacity to generate net income from its assets, particularly in the latest year examined. Although adjusted net income exhibited some volatility, the underlying upward trend appears solid.