PepsiCo Inc. (NASDAQ:PEP)

Gross Profit Margin

The gross profit margin displayed a generally stable trend from the earliest available data in March 2020 (54.82%) to June 2025 (54.43%). There was a slight decline in the margin through 2021, reaching a low around 53.03% in late 2021 and early 2022. Subsequently, a gradual recovery occurred, peaking around 54.74% in late 2024 before slightly easing again by mid-2025. Overall, gross profitability remained consistent within a narrow range above 53% throughout the period.

Operating Profit Margin

The operating profit margin showed more variability compared to gross margin. From early 2020 levels around 14.3%, there was an upward trend into mid-2021 with a peak at 17.46%, representing enhanced operational efficiency or cost management during that time. However, a declining trend followed from late 2021 through 2023, hitting lows near 10.08%. After this trough, operating margin moderately recovered, fluctuating between 11% and 14% through 2024 and early 2025, but with a noticeable dip in mid-2025 at 11.44%. This indicates some volatility and challenges impacting operating profitability.

Net Profit Margin

The net profit margin trend paralleled the operating margin but with lower peaks and troughs. Starting near 10.12% in early 2020, it climbed to a peak of 12.57% in mid-2021, reflecting strong bottom-line profitability. Thereafter, the margin declined substantially to around 7.48% in early 2023, indicating increased costs or other factors reducing net income. A gradual improvement followed, stabilizing around 10% through 2024, but once again drooping to 8.23% by mid-2025. The data suggest fluctuating net profitability, influenced by both operational performance and possibly financial or tax expenses.

Return on Equity (ROE)

ROE started at a high level, approximately 52.92% in March 2020, signaling significant shareholder returns. This metric showed notable variability, reaching highs above 55% in mid-2021 and again in mid-2025, but also experiencing declines down to the high 30% range in early 2023 and just over 40% by mid-2025. The oscillations may correspond to changes in net profitability, equity base, or leverage. Despite fluctuations, the company consistently delivered robust returns on equity throughout the observed timeframe.

Return on Assets (ROA)

ROA exhibited an increasing trend from 7.66% in early 2020 to a peak near 10.93% by mid-2021, indicating improved asset utilization. Although a decline occurred in 2023 to about 7%, the ratio rebounded again in subsequent periods, maintaining levels mostly between 8% and 9.6% through 2024. A decline was noted again around mid-2025 to 7.17%. This pattern demonstrates fluctuations in asset efficiency, with periods of enhanced profitability relative to total assets followed by intermittent softness.

Net Revenue

The net revenue demonstrates a consistent upward trend across the observed quarters. Starting at 13,881 million USD in March 2020, there is a notable increase each quarter, reaching as high as 27,996 million USD by December 2022. Although some fluctuations occur, the general direction is positive with revenues stabilizing above 17,000 million USD in the most recent quarters, indicating steady growth in sales or service income over the period.

Gross Profit

Gross profit follows a pattern similar to net revenue, rising progressively from 7,754 million USD in March 2020 to a peak of 14,753 million USD in December 2023. The data reflects a strong upward trajectory, albeit with some variability, particularly visible in the mid-range quarters where some rises and dips occur. Overall, gross profit correlates well with net revenue increases, suggesting maintained or improving efficiency in production or service delivery.

Gross Profit Margin

The gross profit margin, available from March 2021 onward, remains relatively stable throughout the periods, fluctuating slightly around the 53% to 54.7% range. There are incremental improvements with margins increasing slightly from 53.03% in December 2021 to 54.74% in June 2025. This reflects consistent cost control relative to revenue, with the company managing to slightly enhance profitability over time on a margin basis.

Overall Analysis

The data indicates a company experiencing sustained and steady financial growth, both in gross profit and net revenue. The gross profit margin stability and minor improvements over time signify effective management of costs relative to revenue growth. The parallel movement of gross profit and net revenue suggests a balanced growth strategy that successfully converts sales increases into profit without sacrificing margin integrity. No abrupt declines or anomalies are evident, reflecting a consistent operational and financial performance across all observed quarters.

The financial data presents a series of fluctuations in operating profit, net revenue, and operating profit margin over multiple quarterly periods.

Operating Profit

The operating profit exhibits notable volatility across the quarters. Initial periods show moderate profits with values such as 1,924 million USD in early 2020, rising to peaks around 3,159 million USD towards late 2021. However, there are significant dips, notably to 815 million USD in late 2022 and 1,683 million USD in late 2023. Despite these troughs, some recovery periods follow, indicated by subsequent increases reaching above 4,000 million USD in late 2023 and 2024. Towards mid-2025, the operating profit decreases moderately again to below 2,000 million USD.

Net Revenue

Net revenue demonstrates a consistent upward trend over the observed timeframe. Starting from approximately 13,881 million USD in early 2020, revenues rise steadily, showing quarter-on-quarter growth and reaching figures close to 25,000 million USD by late 2021. After a slight dip during late 2022, net revenue resumes growth, maintaining levels mostly between 17,000 and 28,000 million USD in subsequent quarters, with some fluctuations but overall an increasing trend up to mid-2025.

Operating Profit Margin

The operating profit margin percentages, available from early 2021 onwards, show relative stability around a mid-to-high teens range, fluctuating between approximately 10% and 17%. Notable variations include a decline to about 10.08% in mid-2023 followed by a recovery period where margins increase back towards the 13-14% range through 2024. The margin trends indicate that while profitability relative to revenue is somewhat stable, it experiences periods of contraction and expansion that correspond with the observed operating profit fluctuations.

In summary, net revenue steadily grows over the analyzed quarters, reflecting consistent sales or top-line expansion. Operating profit, however, shows considerable volatility, suggesting variable cost control or changes in operational efficiency. Correspondingly, the operating profit margin oscillates but remains in a moderate range, indicating that profitability as a proportion of revenues experiences cyclical pressures yet maintains a stable overall level. These patterns point to a dynamic operating environment with strengths in revenue generation but challenges in sustaining consistent profitability across periods.

Net Income Attributable to PepsiCo

The net income figures demonstrate significant volatility across the observed periods. Initially, net income rose from $1,338 million in March 2020 to a peak of $2,358 million by June 2021. Subsequently, a marked decline occurred, reaching a low of $518 million in December 2022. Thereafter, net income rebounded, peaking again around $3,092 million in September 2023 before exhibiting another downturn towards the end of the timeline, ending at approximately $1,263 million by June 2025. This pattern suggests cyclical fluctuations potentially influenced by external market conditions or extraordinary items impacting profitability.

Net Revenue

Net revenue showed a generally increasing trend throughout the periods. Starting at $13,881 million in March 2020, revenues increased steadily, with notably consistent quarter-over-quarter growth, reaching $27,996 million by December 2022. Despite some fluctuations, such as a slight dip at certain points (e.g., from $27,996 million in late 2022 to about $27,784 million in late 2024), the overall trajectory indicates robust revenue generation and expansion over the timespan.

Net Profit Margin

The net profit margin, available from late 2020 onwards, exhibited relative stability, oscillating primarily between 7.48% and 12.57%. Margins peaked around 12.57% in June 2022, indicating a period of strong profitability relative to revenue. This was followed by a general margin decline to approximately 8.23% towards mid-2025. Despite fluctuations, the margin maintains a healthy range above 8% for most of the periods, reflecting efficient cost control and profitability management in relation to revenue fluctuations.

Overall Observations

The financial data presents a picture of strong revenue growth accompanied by fluctuating profitability. Revenue trends suggest successful market performance with increasing sales. However, net income volatility and profit margin fluctuations imply underlying challenges possibly related to cost management, pricing strategies, or external economic factors. The cyclical nature of net income despite stable revenue growth warrants further inquiry into expense patterns and operational efficiency to better understand the drivers behind profitability swings.

Net Income attributable to PepsiCo

The net income exhibits significant volatility across the observed periods. Initially, net income rose from 1,338 million USD in March 2020 to a peak of 2,291 million USD in September 2020, followed by a decline towards the end of 2020. In 2021, net income fluctuated, with a notable high of 4,261 million USD in March 2022, suggesting an unusually strong quarter, but subsequently dropped sharply to 518 million USD by December 2022. In 2023 and early 2024, net income demonstrated recovery with peaks near 3,092 million USD in September 2023 and maintained values around 3,000 million USD into late 2024. However, the final quarters of 2024 and into mid-2025 reflect a declining trend, settling near 1,263 million USD by June 2025.

Total PepsiCo common shareholders' equity

Shareholders’ equity shows a general upward trend over the entire period, starting at 13,465 million USD in March 2020 and gradually increasing to peak values exceeding 19,400 million USD during 2024. Some minor fluctuations and slight declines occur, such as a decrease from roughly 18,977 million USD to 17,149 million USD between late 2022 and early 2023. Despite these fluctuations, the overall equity base expanded steadily, reflecting ongoing capital retention or equity financing activities over the timeframe.

Return on Equity (ROE)

The ROE figures commence from March 2021, exhibiting levels consistently above 38%, frequently exceeding 50%, indicative of strong profitability relative to shareholders’ equity. ROE peaks near 55.85% in mid-2022 and sustains elevated levels through most quarters, albeit with some volatility. The lowest noted values occur in early and mid-2023, around 38-44%, followed by a recovery back to approximately 50% in 2024. Towards mid-2025, ROE shows a declining trajectory, concluding at approximately 40.99%. These fluctuations in ROE broadly correspond with the net income variations, while the equity base remains relatively stable or increasing.

Overall insights

The financial data indicates a company experiencing considerable net income fluctuations on a quarterly basis, with occasional sharp increases and declines. However, the equity base has steadily grown over the observed period, suggesting solid balance sheet strength. The return on equity, remaining mostly robust and often exceeding 40%, reflects efficient use of shareholders’ equity to generate profit despite the income volatility. The inconsistency in net income may be attributed to operational challenges, market conditions, or other non-specified factors impacting quarterly profitability. The data suggests vigilance is warranted as the recent declining net income and ROE towards mid-2025 may indicate emerging pressures on profitability.

The financial data exhibits various trends in net income and total assets, alongside the return on assets (ROA) percentage over multiple quarterly periods. The analysis highlights fluctuations, growth periods, and periods of decline within these key indicators.

Net Income Attributable to PepsiCo

The net income figures demonstrate significant volatility across the quarters observed. Initially, net income shows an upward trajectory from $1,338 million to a peak of $2,358 million by mid-2021, followed by a sharp decline to $1,322 million by the end of 2021. Subsequently, there is a notable rebound reaching $4,261 million in early 2022, which marks the highest point in the series. However, a steep decline follows, dropping to $518 million by the end of 2022. Through 2023 and into early 2024, net income recovers again, reaching levels above $3 billion on several occasions, but toward the later periods, it trends downward steadily, falling to $1,263 million by mid-2025. This volatility indicates external or operational factors affecting profitability considerably quarter-to-quarter.

Total Assets

Total assets remain relatively stable with a gradual increasing trend over the periods. Starting at approximately $85 billion, assets increase steadily, surpassing $100 billion by early 2024 and reaching about $105 billion by mid-2025. This suggests consistent investment or asset accumulation, reflecting possible expansion or asset appreciation, even when net income is fluctuating.

Return on Assets (ROA)

ROA percentages, available intermittently, reveal strong and generally positive returns, fluctuating mostly between 7% and 10%. The initial available value is 7.66%, rising to a peak of 10.93% around mid-2022, indicating highly efficient asset utilization during this period. Despite some variability, ROA stays mostly above 7%, showing sustained operational effectiveness. Notably, ROA dips to around 7.07% at one point but recovers above 9% subsequently, signaling ongoing profitable management of assets despite net income volatility.

In conclusion, asset levels show steady growth, while profitability (net income) experiences considerable variation. The ROA maintains positive levels confirming that despite fluctuations in income, the company manages to generate satisfactory returns from its asset base. The diverse net income pattern suggests potential external market or internally driven performance shocks impacting earnings irregularly over time.