Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
PepsiCo Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | PepsiCo Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | PepsiCo Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | PepsiCo Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | PepsiCo Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | PepsiCo Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Gross Profit Margin
PepsiCo Inc., gross profit margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 50,110) | 49,590) | 45,816) | 42,399) | 38,575) | |
| Net revenue | 91,854) | 91,471) | 86,392) | 79,474) | 70,372) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 54.55% | 54.21% | 53.03% | 53.35% | 54.82% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | — | 59.52% | 58.14% | 60.27% | 59.31% | |
| Mondelēz International Inc. | 39.12% | 38.22% | 35.92% | 39.19% | 39.30% | |
| Philip Morris International Inc. | 64.81% | 63.35% | 64.10% | 68.06% | 66.65% | |
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).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 50,110 ÷ 91,854 = 54.55%
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. | PepsiCo Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
PepsiCo Inc., operating profit margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | 12,887) | 11,986) | 11,512) | 11,162) | 10,080) | |
| Net revenue | 91,854) | 91,471) | 86,392) | 79,474) | 70,372) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 14.03% | 13.10% | 13.33% | 14.04% | 14.32% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | — | 24.72% | 25.37% | 26.67% | 27.25% | |
| Mondelēz International Inc. | 17.41% | 15.28% | 11.22% | 16.20% | 14.50% | |
| Philip Morris International Inc. | 35.38% | 32.85% | 38.56% | 41.32% | 40.66% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | — | 19.36% | 19.83% | 21.93% | 21.81% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | — | 7.32% | 8.45% | 8.49% | 8.18% | |
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).
1 2024 Calculation
Operating profit margin = 100 × Operating profit ÷ Net revenue
= 100 × 12,887 ÷ 91,854 = 14.03%
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. | PepsiCo Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net Profit Margin
PepsiCo Inc., net profit margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 9,578) | 9,074) | 8,910) | 7,618) | 7,120) | |
| Net revenue | 91,854) | 91,471) | 86,392) | 79,474) | 70,372) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 10.43% | 9.92% | 10.31% | 9.59% | 10.12% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | — | 23.42% | 22.19% | 25.28% | 23.47% | |
| Mondelēz International Inc. | 12.65% | 13.77% | 8.63% | 14.97% | 13.37% | |
| Philip Morris International Inc. | 18.63% | 22.21% | 28.49% | 29.00% | 28.08% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | — | 15.62% | 15.68% | 17.28% | 16.69% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | — | 5.47% | 6.12% | 6.21% | 6.23% | |
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).
1 2024 Calculation
Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × 9,578 ÷ 91,854 = 10.43%
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. | PepsiCo Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Equity (ROE)
PepsiCo Inc., ROE calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 9,578) | 9,074) | 8,910) | 7,618) | 7,120) | |
| Total PepsiCo common shareholders’ equity | 18,041) | 18,503) | 17,149) | 16,043) | 13,454) | |
| Profitability Ratio | ||||||
| ROE1 | 53.09% | 49.04% | 51.96% | 47.48% | 52.92% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Coca-Cola Co. | — | 41.30% | 39.59% | 42.48% | 40.14% | |
| Mondelēz International Inc. | 17.12% | 17.50% | 10.11% | 15.21% | 12.89% | |
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | — | 52.90% | 51.06% | 53.84% | 55.44% | |
| ROE, Industry | ||||||
| Consumer Staples | — | 30.71% | 32.10% | 31.40% | 30.98% | |
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).
1 2024 Calculation
ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo common shareholders’ equity
= 100 × 9,578 ÷ 18,041 = 53.09%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | PepsiCo Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Assets (ROA)
PepsiCo Inc., ROA calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to PepsiCo | 9,578) | 9,074) | 8,910) | 7,618) | 7,120) | |
| Total assets | 99,467) | 100,495) | 92,187) | 92,377) | 92,918) | |
| Profitability Ratio | ||||||
| ROA1 | 9.63% | 9.03% | 9.67% | 8.25% | 7.66% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Coca-Cola Co. | — | 10.97% | 10.29% | 10.36% | 8.87% | |
| Mondelēz International Inc. | 6.73% | 6.95% | 3.82% | 6.41% | 5.24% | |
| Philip Morris International Inc. | 11.42% | 11.96% | 14.67% | 22.06% | 17.98% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | — | 9.72% | 9.51% | 10.44% | 9.04% | |
| ROA, Industry | ||||||
| Consumer Staples | — | 8.28% | 8.95% | 8.75% | 8.24% | |
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).
1 2024 Calculation
ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 9,578 ÷ 99,467 = 9.63%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | PepsiCo Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |