Coca Cola

ROE Model

2022 2021 2020

Growth Rate in Sales 11.3% 17.1%

Operating Income 12,568 14,022 11,186

Sales 43,004 38,655 33,014
Operating Profit Margin (1) 29.2% 36.3% 33.9%

Sales 43,004 38,655 33,014

Invested Capital 75,811 79,049 75,363
Capital Turnover (2) 0.6 0.5 0.4

Pre-Tax Return on Invested Capital (3)=(1)×(2) 16.6% 17.7% 14.8%

Net Income 9,571 9,804 7,768

Income Before Tax 11,686 12,425 9,749
Tax Effect (4) 0.8 0.8 0.8
Effective Tax Rate 18.1% 21.1% 20.3%

Return on Invested Capital (5)=(3)×(4) 13.6% 14.0% 11.8%

Income Before Tax 11,686 12,425 9,749

Operating Income 12,568 14,022 11,186
Financial Cost Effect (6) 0.9 0.9 0.9

Invested Capital 75,811 79,049 75,363

Equity 25,826 24,860 21,284
Financial Structure Effect (7) 2.9 3.2 3.5

Financial Leverage Multiplier (8)=(6)×(7) 2.7 2.8 3.1

Return on Equity (9)=(5)×(8) 37.1% 39.4% 36.5%

PepsiCo

ROE Model

2022 2021 2020

Growth Rate in Sales 8.7% 12.9%

Operating Income 11,644 11,684 10,197

Sales 86,392 79,474 70,372
Operating Profit Margin (1) 13.5% 14.7% 14.5%

Sales 86,392 79,474 70,372

Invested Capital 68,816 70,465 73,326
Capital Turnover (2) 1.3 1.1 1.0

Pre-Tax Return on Invested Capital (3)=(1)×(2) 16.9% 16.6% 13.9%

Net Income 8,978 7,679 7,175

Income Before Tax 10,705 9,821 9,069
Tax Effect (4) 0.8 0.8 0.8
Effective Tax Rate 16.1% 21.8% 20.9%

Return on Invested Capital (5)=(3)×(4) 14.2% 13.0% 11.0%

Income Before Tax 10,705 9,821 9,069

Operating Income 11,644 11,684 10,197
Financial Cost Effect (6) 0.9 0.8 0.9

Invested Capital 68,816 70,465 73,326

Equity 17,273 16,151 13,552
Financial Structure Effect (7) 4.0 4.4 5.4

Financial Leverage Multiplier (8)=(6)×(7) 3.7 3.7 4.8

Return on Equity (9)=(5)×(8) 52.0% 47.5% 52.9%