Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

PepsiCo Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 28, 2024 53.09% = 9.63% × 5.51
Dec 30, 2023 49.04% = 9.03% × 5.43
Dec 31, 2022 51.96% = 9.67% × 5.38
Dec 25, 2021 47.48% = 8.25% × 5.76
Dec 26, 2020 52.92% = 7.66% × 6.91

Based on: 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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

PepsiCo Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 28, 2024 53.09% = 10.43% × 0.92 × 5.51
Dec 30, 2023 49.04% = 9.92% × 0.91 × 5.43
Dec 31, 2022 51.96% = 10.31% × 0.94 × 5.38
Dec 25, 2021 47.48% = 9.59% × 0.86 × 5.76
Dec 26, 2020 52.92% = 10.12% × 0.76 × 6.91

Based on: 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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

PepsiCo Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 28, 2024 53.09% = 0.81 × 0.88 × 14.70% × 0.92 × 5.51
Dec 30, 2023 49.04% = 0.80 × 0.89 × 13.96% × 0.91 × 5.43
Dec 31, 2022 51.96% = 0.84 × 0.90 × 13.61% × 0.94 × 5.38
Dec 25, 2021 47.48% = 0.78 × 0.83 × 14.78% × 0.86 × 5.76
Dec 26, 2020 52.92% = 0.79 × 0.88 × 14.59% × 0.76 × 6.91

Based on: 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).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

PepsiCo Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 28, 2024 9.63% = 10.43% × 0.92
Dec 30, 2023 9.03% = 9.92% × 0.91
Dec 31, 2022 9.67% = 10.31% × 0.94
Dec 25, 2021 8.25% = 9.59% × 0.86
Dec 26, 2020 7.66% = 10.12% × 0.76

Based on: 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).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

PepsiCo Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 28, 2024 9.63% = 0.81 × 0.88 × 14.70% × 0.92
Dec 30, 2023 9.03% = 0.80 × 0.89 × 13.96% × 0.91
Dec 31, 2022 9.67% = 0.84 × 0.90 × 13.61% × 0.94
Dec 25, 2021 8.25% = 0.78 × 0.83 × 14.78% × 0.86
Dec 26, 2020 7.66% = 0.79 × 0.88 × 14.59% × 0.76

Based on: 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).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

PepsiCo Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 28, 2024 10.43% = 0.81 × 0.88 × 14.70%
Dec 30, 2023 9.92% = 0.80 × 0.89 × 13.96%
Dec 31, 2022 10.31% = 0.84 × 0.90 × 13.61%
Dec 25, 2021 9.59% = 0.78 × 0.83 × 14.78%
Dec 26, 2020 10.12% = 0.79 × 0.88 × 14.59%

Based on: 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).

The primary reason for the increase in net profit margin ratio over 2024 year is the increase in operating profitability measured by EBIT margin ratio.