The business behind the dividend
| Measure | KDP | Median | Formula |
|---|---|---|---|
| Return on equity | 8.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 9.1% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $2.05bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.50bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 21.5% | 15.0% | Operating income ÷ revenue |
| Net margin | 12.5% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.55x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 6.02x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.64x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.96x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 8.1% | 5.9% | 8.5% | 5.7% | 8.6% | 5.6% | 5.4% | 2.6% | 14.5% | 5.5% | 5.7% |
| Return on capital employed | 9.1% | 6.8% | 8.7% | 7.1% | 7.9% | 6.6% | 6.5% | 3.3% | 11.1% | — | 7.1% |
| Operating margin | 21.5% | 16.9% | 21.5% | 18.5% | 22.8% | 21.3% | 21.4% | 16.6% | 20.7% | 21.0% | 21.0% |
| Net margin | 12.5% | 9.4% | 14.7% | 10.2% | 16.9% | 11.4% | 11.3% | 7.9% | 16.1% | 8.9% | 11.3% |
| Debt to equity | 0.55x | 0.57x | 0.43x | 0.46x | 0.47x | 0.57x | 0.57x | 0.65x | 0.69x | — | 0.57x |
| Current ratio | 0.64x | 0.49x | 0.38x | 0.47x | 0.47x | 0.31x | 0.35x | 0.38x | 0.52x | — | 0.47x |
| Cash conversion | 0.96x | 1.54x | 0.61x | 1.98x | 1.34x | 1.85x | 1.97x | 2.75x | 0.96x | 4.63x | 1.54x |
How it compares in consumer staples
Among the 38 consumer staples companies here measured on free cash flow, Keurig Dr Pepper pays out less than 7 of them. The median for that group is 65.1%, against this company’s 83.1%.
Closest on free cash flow
- Mondelez International (MDLZ) 76.9%
- Clorox (CLX) 79.1%
- General Mills (GIS) 80.9%
- Philip Morris International (PM) 80.9%
Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →