Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2008
- Current Ratio since 2008
- Price to Earnings (P/E) since 2008
- Price to Sales (P/S) since 2008
- Analysis of Revenues
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Profitability Ratios (Summary)
Keurig Dr Pepper Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Gross Profit Margin
- The gross profit margin shows a downward trend over the observed quarterly periods, starting from 57.03% in March 2020 and declining steadily to 52.99% by June 2022. This indicates a gradual reduction in the proportion of revenue retained after accounting for the cost of goods sold.
- Operating Profit Margin
- The operating profit margin displays some fluctuation but generally exhibits an upward movement. Beginning at 21.38% in March 2020, it experienced slight decreases in mid-2020, followed by steady growth peaking at 25.04% in March 2022 before declining slightly to 23.04% in June 2022. This suggests improving operational efficiency or better control over operating expenses in most periods.
- Net Profit Margin
- The net profit margin shows a significant improvement throughout the quarters. Starting at 11.28% in March 2020, the figure rises progressively to a high of 18.71% in March 2022, before a modest decline to 16.39% in June 2022. This reflects enhanced profitability at the bottom line, possibly due to cost management, revenue growth, or other non-operating income factors.
- Return on Equity (ROE)
- Return on equity has steadily increased from 5.39% in March 2020 to a peak of 9.43% in March 2022. A slight reduction to 8.57% follows in June 2022. This overall trend indicates improving effectiveness in generating profit from shareholders' equity over time.
- Return on Assets (ROA)
- Return on assets follows a pattern similar to ROE. The margin rose from 2.53% in March 2020 to a high of 4.7% in March 2022, with a small decrease to 4.23% in June 2022. This progression signals enhanced efficiency in asset utilization to generate profits.
Return on Sales
Return on Investment
Gross Profit Margin
Keurig Dr Pepper Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Gross profit | |||||||||||||||||||
| Net sales | |||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||
| Benchmarks | |||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Gross profit margin = 100
× (Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals fluctuations and certain trends in net sales, gross profit, and gross profit margin over the analyzed periods.
- Net Sales
- Net sales exhibited a generally upward trend from the first quarter of 2019 through the second quarter of 2022. Starting at $2,504 million in March 2019, sales increased with occasional short-term fluctuations, reaching $3,554 million by June 2022. This represents a significant overall growth, with notable acceleration occurring especially in the post-2020 periods.
- Gross Profit
- Gross profit followed a similar pattern to net sales, increasing from $1,398 million in March 2019 to $1,776 million in June 2022. While generally on an upward trajectory, gross profit saw some periods of stagnation or minor decline, such as during early 2020, likely due to external factors impacting costs or sales efficiency. However, it rebounded thereafter, peaking in late 2021 before a slight decline and subsequent recovery in mid-2022.
- Gross Profit Margin
- The gross profit margin percentage shows a subtle downward trend over the available periods starting from March 2020 through June 2022. The margin began around 57.03% in early 2020 and gradually decreased to approximately 52.99% by mid-2022. This decline suggests rising costs of goods sold relative to sales or changes in sales mix, exerting pressure on profitability at the gross level despite increasing sales volumes.
Overall, the data reflects growth in revenue and gross profit, albeit with a contraction in gross profitability ratio. This dynamic points to challenges in cost management or competitive pricing while maintaining sales expansion efforts.
Operating Profit Margin
Keurig Dr Pepper Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Income from operations | |||||||||||||||||||
| Net sales | |||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||
| Benchmarks | |||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Income from operationsQ2 2022
+ Income from operationsQ1 2022
+ Income from operationsQ4 2021
+ Income from operationsQ3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Income from operations
-
The income from operations exhibits notable fluctuations over the analyzed periods. Initially, from March 2019 to December 2019, there is a rising trend from 498 million USD to a peak of 713 million USD. Subsequently, during 2020, the income shows considerable variability with a decline to 466 million USD in March 2020 followed by a recovery peaking at 753 million USD in September 2020. Through 2021, the income remains relatively strong, oscillating between 640 and 795 million USD, before experiencing a decrease in June 2022 to 572 million USD. Overall, the income demonstrates resilience despite some quarterly volatility.
- Net sales
-
Net sales present a generally upward trajectory across the periods considered. Beginning at 2.504 billion USD in March 2019, sales increase steadily to 2.934 billion USD by December 2019. In 2020, net sales initially decline to 2.613 billion USD in March, coincident with a dip in income from operations, but recover progressively to reach 3.121 billion USD by December 2020. This growth trend continues into 2021, with quarterly sales rising from 2.902 billion USD to 3.391 billion USD by December 2021, and further increasing to 3.554 billion USD in June 2022. The data indicates consistent sales growth over time, with temporary setbacks corresponding to early 2020.
- Operating profit margin
-
The operating profit margin exhibits improvement over the periods with data available, starting from 21.38% in March 2020 and experiencing minor fluctuations around this range through 2020. A notable increase is observed in 2021 where the margin rises steadily from 21.35% in March to 23.2% in September, maintaining this elevated level towards the end of the year. By the first half of 2022, the margin further climbs, reaching 25.04% in March before settling at 23.04% in June. This suggests an enhancement in operational efficiency or cost management leading to improved profitability despite the variation in income and sales.
- Overall Insights
-
The overall financial trends reflect a period of initial growth in both net sales and income from operations until the onset of 2020, where a decline is evident, likely due to external factors impacting early 2020 results. However, following the initial downturn, the company shows a strong recovery characterized by sustained sales growth and increased operating margins, indicating improved operational effectiveness. The rising operating profit margin, alongside growing net sales, implies the company has managed to enhance profitability even when income from operations shows some quarterly volatility. The decline in income from operations in mid-2022 alongside continued sales growth might warrant further analysis to understand cost structure changes or other impacting factors.
Net Profit Margin
Keurig Dr Pepper Inc., net profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Net income attributable to KDP | |||||||||||||||||||
| Net sales | |||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||
| Benchmarks | |||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net income attributable to KDPQ2 2022
+ Net income attributable to KDPQ1 2022
+ Net income attributable to KDPQ4 2021
+ Net income attributable to KDPQ3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The quarterly financial data reveals notable fluctuations and trends in net income, net sales, and net profit margin over the periods analyzed. The net income attributable to the company displays a variable pattern with a significant decline observed in the first quarter of 2020, dropping from 406 million USD in December 2019 to 156 million USD in March 2020. Subsequently, net income recovers and increases steadily, reaching a peak of 843 million USD in December 2021, before declining again to 218 million USD in June 2022.
Net sales demonstrate a general upward trajectory with some periodic fluctuations. Starting from 2,504 million USD in March 2019, sales grow consistently to reach 3,554 million USD by June 2022. There is a slight dip noticeable specifically in the first quarter of 2020, corresponding with the contraction in net income, but the overall trend remains positive and indicates expansion in the company's sales volume or pricing power over the analyzed span.
The net profit margin, available from the end of 2019 onwards, shows a compelling upward trend, increasing from 11.28% in March 2020 to a high of 18.71% in March 2022. This improvement suggests enhanced profitability and possibly improved operational efficiency or cost management, despite some variability afterwards, as the margin declines somewhat to 16.39% by June 2022.
- Net Income
- Experienced a sharp drop at the beginning of 2020, likely influenced by external challenges impacting profitability, followed by a strong recovery culminating in a record high at the end of 2021. The decline in mid-2022 indicates increased volatility or challenges faced during this period.
- Net Sales
- Display a steady increase throughout the period, reflecting growth in revenue generation. The slight sales dip in early 2020 parallels the decline in net income, suggesting a broader market or operational impact during that specific time frame.
- Net Profit Margin
- Shows significant improvement over the quarters post-2019, implying that the company improved its profit efficiency, possibly through cost control or higher-margin activities. The peak margin was recorded in early 2022, with a minor decrease noted subsequently.
Overall, the data indicates that after an initial challenge in early 2020, both sales and profitability metrics improved substantively, highlighting an effective recovery and stronger financial performance. However, the mid-2022 decline in net income and margin suggests potential emerging pressures that may require further monitoring and analysis.
Return on Equity (ROE)
Keurig Dr Pepper Inc., ROE calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Net income attributable to KDP | |||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||
| ROE1 | |||||||||||||||||||
| Benchmarks | |||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
ROE = 100
× (Net income attributable to KDPQ2 2022
+ Net income attributable to KDPQ1 2022
+ Net income attributable to KDPQ4 2021
+ Net income attributable to KDPQ3 2021)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data over the observed periods reveals several notable trends regarding profitability and equity performance. Net income attributable to the company demonstrates a general upward trajectory with some fluctuations. Beginning at 230 million USD in March 2019, net income increased steadily to reach a peak of 843 million USD in December 2021. However, there is a subsequent decline to 218 million USD by June 2022, indicating a recent reduction in profitability.
Stockholders’ equity has shown a consistent, gradual increase throughout the entire timeline. Starting at approximately 22,674 million USD in March 2019, the equity value rose steadily to peak around 25,511 million USD in March 2022. A slight decrease to 25,391 million USD in June 2022 follows this peak, yet overall, equity has grown moderately over the period, reflecting accumulation of retained earnings and possible capital investments.
Return on Equity (ROE), which measures profitability relative to shareholders' equity, was calculated starting from March 2020. Initially, ROE was 5.39%, slightly declining to 5.08% in September 2020, but then consistently increased over subsequent quarters. It reached a high of 9.43% in March 2022 before dipping to 8.57% in June 2022. This trend indicates improving efficiency in generating profits from equity, with a recent minor retreat consistent with the observed decline in net income.
In summary, the company has exhibited growth in net income and equity over the majority of the evaluated periods, supported by improving ROE until early 2022. The declines noted in the most recent quarter across net income and ROE suggest some emerging challenges or market conditions impacting profitability. Nevertheless, the overall pattern reflects a generally positive financial performance with increasing returns to shareholders prior to the last quarter.
Return on Assets (ROA)
Keurig Dr Pepper Inc., ROA calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Net income attributable to KDP | |||||||||||||||||||
| Total assets | |||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||
| ROA1 | |||||||||||||||||||
| Benchmarks | |||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
ROA = 100
× (Net income attributable to KDPQ2 2022
+ Net income attributable to KDPQ1 2022
+ Net income attributable to KDPQ4 2021
+ Net income attributable to KDPQ3 2021)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net income attributable to KDP
- The net income figures show notable variability across the quarterly periods. Initially, from March 2019 to December 2019, there is a general upward trend, starting at 230 million and peaking at 406 million USD. A significant dip occurs in the first quarter of 2020, falling to 156 million, likely reflecting challenging conditions at that time. Following this decline, net income demonstrates a strong recovery and consistent growth through the end of 2021, reaching a high point of 843 million USD in December 2021. However, the data then indicates a sharp decrease in net income for the first half of 2022, dropping to 218 million by June 2022.
- Total assets
- Total assets remained relatively stable over the period from March 2019 to June 2022. Starting at 49,291 million USD in early 2019, the value fluctuates marginally throughout the quarters but exhibits a slight overall increase, reaching 51,428 million USD by mid-2022. This stability suggests a consistent asset base with modest growth, without significant acquisitions or disposals impacting the balance sheet drastically.
- Return on Assets (ROA)
- ROA values are available starting from December 2019 and reveal an upward trend. Beginning at 2.53%, ROA remains relatively steady through the first half of 2020, ranging between 2.37% and 2.66%. From late 2020 onwards, ROA increases progressively, hitting a peak of 4.7% in March 2022. There is a slight decline in June 2022 to 4.23%, but overall, the trend indicates improving asset efficiency and profitability over the observed periods.
- Summary of Trends and Insights
- The financial data suggests that profitability, as measured by net income, experienced volatility influenced potentially by external factors, including a sharp downturn in early 2020 followed by a strong rebound and record highs in late 2021. Asset levels remained stable with a mild upward trajectory, supporting the company's operational base. The improving ROA indicates enhanced effectiveness in utilizing assets to generate earnings, particularly notable through 2021 and early 2022. The decline in net income in early 2022 warrants attention as it contrasts with the ongoing improvement in ROA, possibly indicating margin pressures or other operational challenges despite efficient asset use.