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PepsiCo PEP Return on invested capital

Return on invested capital at other companies

Coca-Cola logo
Coca-ColaKO
18.2%+2.3pp
General Mills logo
General MillsGIS
12.8%-0.7pp
Hershey logo
HersheyHSY
11.7%-21.4pp
Monster Beverage logo
Monster BeverageMNST
27.2%+0.6pp
Mondelez International logo
Mondelez InternationalMDLZ
10%-2.0pp
Keurig Dr Pepper logo
Keurig Dr PepperKDP
7.8%+2.5pp

Other financials

Income statement

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Revenue$19.4B+8.5%
Gross profit$10.7B+7.4%
Operating income$3.2B+24.4%
Net income$2.3B+26.9%
EPS (diluted)$1.70+27.8%

Balance sheet

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Cash & equivalents$10.6B+26.8%
Total debt$52.7B+8.7%
Total equity$21.4B+16.3%
Total assets$110.65B+8.8%

Cash flow

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Operating cash flow$41.0M+104%
CapEx$447.0M-25.9%
Free cash flow-$406.0M+74.2%

Valuation

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Market cap$193.52B+3.2%
Enterprise value$235.7B+3.5%
P/E22.2×+2.2×
P/S0.0×

Profitability

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Gross margin54.1%-0.7pp
Operating margin12.7%-1.2pp
Net margin9.1%-1.1pp

Returns & leverage

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Return on equity43.9%-6.1pp
Debt / equity2.5×-0.2×
Current ratio0.9×+0.1×

Where this comes from

Calculated from PepsiCo’s reported figures.

Based on trailing twelve months.

The official record: PepsiCo’s 10-Q, filed April 16, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is PepsiCo's return on invested capital?
PepsiCo (PEP) reported return on invested capital of 16.1% in Q1 2026.
How has PepsiCo's return on invested capital changed year-over-year?
PepsiCo's return on invested capital decreased by 9.6% year-over-year, from 17.8% to 16.1%.
What is the long-term trend for PepsiCo's return on invested capital?
Over 4 years (2021 to 2025), PepsiCo's return on invested capital has grown at a -3.4% compound annual growth rate (CAGR), from 69.9% to 61%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.