Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

Calculation

PepsiCo Inc., ROA, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The Return on Assets (ROA) exhibited considerable fluctuation over the period from 2005 to 2025. Initially, the ROA demonstrated an upward trajectory, peaking at 18.85% in 2006 before experiencing a decline and subsequent stabilization in the mid-to-high single digits for several years. A significant surge occurred in 2018, followed by a return to more moderate levels, and a final increase in the most recent years.

Initial Growth and Subsequent Moderation (2005-2011)
From 2005 to 2006, the ROA increased substantially, moving from 12.85% to 18.85%. This initial growth was followed by a gradual decline, settling around 8-9% between 2008 and 2011. This period suggests a potential stabilization of asset utilization efficiency, although at a lower level than the peak observed in 2006.
Volatility and Peak in 2018
The years 2012 through 2017 showed relatively consistent ROA values, generally fluctuating between approximately 7.83% and 9.67%. A dramatic increase in ROA was observed in 2018, reaching 16.12%. This substantial rise warrants further investigation to determine the underlying drivers, such as significant improvements in net income or asset management. However, this peak was not sustained.
Recent Performance (2019-2025)
Following the 2018 peak, the ROA decreased to 9.31% in 2019. It then experienced a period of moderate fluctuation, with values ranging from 7.66% to 9.67% between 2020 and 2023. The ROA concluded the period with values of 9.03%, 9.63%, and 7.67% in 2022, 2023, and 2025 respectively. This suggests a recent trend of moderate performance with a slight decline in the final year.

The observed fluctuations in ROA likely reflect changes in both net income attributable to the company and the total asset base. The significant increase in total assets in 2010 and 2020, coupled with varying net income levels, contributed to the observed ROA patterns. Further analysis, incorporating industry benchmarks and competitor performance, would provide a more comprehensive understanding of the company’s asset utilization efficiency.


Comparison to Competitors

PepsiCo Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Food, Beverage & Tobacco)


Comparison to Industry (Consumer Staples)