1. Analyze three items on the income statement (or income statement-based financial ratios; see the list on p. 3) for your base company for the last three years and discuss whether the companys performance related to these items appear to be improving, deteriorating, or remaining stable. Justify your answer.

Income Statement-based ratios: show calculations - ROE - ROA - PM, GPM - Interest coverage - Change in revenue

KEURIG DR PEPPER INC. CONSOLIDATED STATEMENTS OF INCOME 2018 Year Ended December 31, 2020 2019 11,618 $ 11.120 $ 5,132 4.778 6,486 6,342 3,978 3.962 67 (39) 2 2,480 2,378 604 654 7.442 3.560 3.882 2,635 10 (in Millions, except per share data) Net sales Cost of sales Gross profit Selling, general and administrative expenses Impairment of intangible assets Other operating (income) expense, net Income from operations Interest expense Interest expense - related party Loss on early extinguishment of debt Impairment of investments and note receivable Other expense (income), net Income before provision for income taxes Provision for income taxes Net income Less: Net income attributable to non-controlling interest Net income attributable to KDP 1.237 401 51 13 11 4 102 17 1,753 428 1,325 19 1,694 440 1,254 (19) 791 202 589 1,325 1.254 $ 586 $ $ 0.94 0.93 0.89 0.88 0.54 0.53 Earnings per common share: Basic Diluted Weighted average common shares outstanding: Basic Diluted 1,4072 1,422.1 1,406.7 1.419.1 1,086.3 1,097.6 KEURIG DR PEPPER INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2020 Year Ended December 31, 2019 1,325 $ 1.254 $ 2018 589 (9) 230 (225) (in millions) Net income Other comprehensive income Foreign currency translation adjustments Net change in pension and post-retirement liability, net of tax of $1, S(1), and so respectively Net change in cash flow hedges, net of tax of S1, $and $0, respectively Total other comprehensive income (loss) Comprehensive income Comprehensive income attributable to non-controlling interest Comprehensive income attributable to KDP (4) (14) (27) 1,298 234 1,488 (229) 360 (3) 357 1,298 $ 1,488 $