Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Keurig Dr Pepper Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Keurig Dr Pepper Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Keurig Dr Pepper Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Keurig Dr Pepper Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Keurig Dr Pepper Inc. ROE improved from 2019 to 2020 and from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Keurig Dr Pepper Inc. ROA improved from 2019 to 2020 and from 2020 to 2021. |
Gross Profit Margin
Keurig Dr Pepper Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross profit | 6,977) | 6,486) | 6,342) | 3,882) | |
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Profitability Ratio | |||||
| Gross profit margin1 | 55.01% | 55.83% | 57.03% | 52.16% | |
| Benchmarks | |||||
| Gross Profit Margin, Competitors2 | |||||
| Altria Group Inc. | 53.79% | 49.80% | 50.62% | — | |
| Coca-Cola Co. | 60.27% | 59.31% | 60.77% | — | |
| PepsiCo Inc. | 53.35% | 54.82% | 55.13% | — | |
| Philip Morris International Inc. | 68.06% | 66.65% | 64.73% | — | |
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 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 6,977 ÷ 12,683 = 55.01%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Keurig Dr Pepper Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
Keurig Dr Pepper Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income from operations | 2,894) | 2,480) | 2,378) | 1,237) | |
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Profitability Ratio | |||||
| Operating profit margin1 | 22.82% | 21.35% | 21.38% | 16.62% | |
| Benchmarks | |||||
| Operating Profit Margin, Competitors2 | |||||
| Altria Group Inc. | 44.44% | 41.57% | 41.12% | — | |
| Coca-Cola Co. | 26.67% | 27.25% | 27.06% | — | |
| PepsiCo Inc. | 14.04% | 14.32% | 15.32% | — | |
| Philip Morris International Inc. | 41.32% | 40.66% | 35.33% | — | |
| Operating Profit Margin, Sector | |||||
| Food, Beverage & Tobacco | 26.21% | 26.30% | 25.88% | — | |
| Operating Profit Margin, Industry | |||||
| Consumer Staples | 9.14% | 8.89% | 8.07% | — | |
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 2021 Calculation
Operating profit margin = 100 × Income from operations ÷ Net sales
= 100 × 2,894 ÷ 12,683 = 22.82%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Keurig Dr Pepper Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Profit Margin
Keurig Dr Pepper Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income attributable to KDP | 2,146) | 1,325) | 1,254) | 586) | |
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Profitability Ratio | |||||
| Net profit margin1 | 16.92% | 11.40% | 11.28% | 7.87% | |
| Benchmarks | |||||
| Net Profit Margin, Competitors2 | |||||
| Altria Group Inc. | 9.51% | 17.08% | -5.15% | — | |
| Coca-Cola Co. | 25.28% | 23.47% | 23.94% | — | |
| PepsiCo Inc. | 9.59% | 10.12% | 10.89% | — | |
| Philip Morris International Inc. | 29.00% | 28.08% | 24.11% | — | |
| Net Profit Margin, Sector | |||||
| Food, Beverage & Tobacco | 16.50% | 17.31% | 13.89% | — | |
| Net Profit Margin, Industry | |||||
| Consumer Staples | 6.06% | 6.32% | 4.09% | — | |
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 2021 Calculation
Net profit margin = 100 × Net income attributable to KDP ÷ Net sales
= 100 × 2,146 ÷ 12,683 = 16.92%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Keurig Dr Pepper Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Return on Equity (ROE)
Keurig Dr Pepper Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income attributable to KDP | 2,146) | 1,325) | 1,254) | 586) | |
| Stockholders’ equity | 24,972) | 23,829) | 23,257) | 22,533) | |
| Profitability Ratio | |||||
| ROE1 | 8.59% | 5.56% | 5.39% | 2.60% | |
| Benchmarks | |||||
| ROE, Competitors2 | |||||
| Altria Group Inc. | — | 157.34% | -20.78% | — | |
| Coca-Cola Co. | 42.48% | 40.14% | 46.99% | — | |
| PepsiCo Inc. | 47.48% | 52.92% | 49.47% | — | |
| Philip Morris International Inc. | — | — | — | — | |
| ROE, Sector | |||||
| Food, Beverage & Tobacco | 106.01% | 118.96% | 77.88% | — | |
| ROE, Industry | |||||
| Consumer Staples | 35.45% | 35.90% | 22.50% | — | |
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 2021 Calculation
ROE = 100 × Net income attributable to KDP ÷ Stockholders’ equity
= 100 × 2,146 ÷ 24,972 = 8.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Keurig Dr Pepper Inc. ROE improved from 2019 to 2020 and from 2020 to 2021. |
Return on Assets (ROA)
Keurig Dr Pepper Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income attributable to KDP | 2,146) | 1,325) | 1,254) | 586) | |
| Total assets | 50,598) | 49,779) | 49,518) | 48,918) | |
| Profitability Ratio | |||||
| ROA1 | 4.24% | 2.66% | 2.53% | 1.20% | |
| Benchmarks | |||||
| ROA, Competitors2 | |||||
| Altria Group Inc. | 6.26% | 9.42% | -2.62% | — | |
| Coca-Cola Co. | 10.36% | 8.87% | 10.33% | — | |
| PepsiCo Inc. | 8.25% | 7.66% | 9.31% | — | |
| Philip Morris International Inc. | 22.06% | 17.98% | 16.76% | — | |
| ROA, Sector | |||||
| Food, Beverage & Tobacco | 10.83% | 10.05% | 8.61% | — | |
| ROA, Industry | |||||
| Consumer Staples | 8.82% | 8.60% | 5.79% | — | |
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 2021 Calculation
ROA = 100 × Net income attributable to KDP ÷ Total assets
= 100 × 2,146 ÷ 50,598 = 4.24%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Keurig Dr Pepper Inc. ROA improved from 2019 to 2020 and from 2020 to 2021. |