10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
PepsiCo's 10-Year ROIIC % for the quarter that ended in Dec. 2023 was 12.71%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for PepsiCo's 10-Year ROIIC % or its related term are showing as below:
PEP's 10-Year ROIIC % is ranked better than 63% of 100
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 7.06
vs PEP: 12.71
PepsiCo 10-Year ROIIC % Historical Data
The historical data trend for PepsiCo's 10-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of PepsiCo's 10-Year ROIIC %
For the Beverages - Non-Alcoholic subindustry, PepsiCo's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PepsiCo's 10-Year ROIIC % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where PepsiCo's 10-Year ROIIC % falls into.
PepsiCo 10-Year ROIIC % Calculation
PepsiCo's 10-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 10354.9347 (Dec. 2023) - 7408.797 (Dec. 2013) )
/
( 88267 (Dec. 2023) - 65096 (Dec. 2013) )
=
2946.1377
/
23171
=
12.71%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
PepsiCo (NAS:PEP) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
PepsiCo 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of PepsiCo's 10-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy offerings. Convenience foods account for approximately 55% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the United States and overseas. International markets make up 40% of total sales and one third of operating profits.
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