PepsiCo Inc. (NASDAQ:PEP)

Current assets exhibited fluctuations over the five-year period. Initial values decreased from 2021 to 2022, followed by a substantial increase through 2023. A slight decrease occurred in 2024, with a subsequent increase observed in 2025, resulting in the highest value within the observed timeframe.

Adjusted current assets mirrored the trend of reported current assets, though the absolute values differed. The adjusted figures also decreased from 2021 to 2022, increased significantly through 2023, decreased slightly in 2024, and increased again in 2025, reaching the highest value in the series.

Trend Analysis - Current Assets

A decline in current assets is noted between December 25, 2021 (US$21,783 million) and December 31, 2022 (US$21,539 million), representing a decrease of approximately 1.1%. This was followed by a considerable increase to US$26,950 million by December 30, 2023, a rise of roughly 25.1%. A minor decrease to US$25,826 million occurred in 2024, before a final increase to US$27,949 million in 2025, representing a 7.8% increase from the prior year.

Trend Analysis - Adjusted Current Assets

Adjusted current assets experienced a similar pattern. A decrease from US$21,930 million in 2021 to US$21,689 million in 2022 (a decrease of approximately 0.9%) was followed by a substantial increase to US$27,125 million in 2023, a growth of approximately 24.9%. A slight decrease to US$26,182 million occurred in 2024, and a subsequent increase to US$28,179 million in 2025, representing a 7.6% increase from the prior year.

Relationship between Current and Adjusted Values

The difference between current assets and adjusted current assets remains relatively consistent throughout the period, generally ranging between US$150 million and US$200 million. This suggests that the adjustments being made are systematic and do not represent large-scale revisions to the underlying asset values. The adjustments appear to consistently increase the reported current asset value.

Overall Observation

The overall trend indicates a strengthening of the current asset position from 2022 through 2025, despite a minor dip in 2024. The consistent adjustments suggest a recurring refinement of the initial current asset valuation.

Total assets exhibited fluctuations over the five-year period. Initially, a slight decrease is observed between 2021 and 2022, followed by a substantial increase in 2023. This increase is partially offset by a decrease in 2024, before concluding with another increase in 2025. Adjusted total assets mirrored this pattern, though the magnitude of change was consistently lower.

Overall Trend

Both total assets and adjusted total assets demonstrate an overall upward trend from 2021 to 2025. However, this trend is not linear, with intermediate periods of decline. The adjusted figures consistently remain below the reported total assets.

Year-over-Year Changes

A decrease in both total and adjusted assets occurred from 2021 to 2022, representing a contraction of approximately 0.2% and 0.1% respectively. A significant expansion is then noted from 2022 to 2023, with total assets increasing by 8.9% and adjusted assets by 9.1%. The period from 2023 to 2024 saw a contraction, with total assets decreasing by 1.0% and adjusted assets by 1.0%. Finally, from 2024 to 2025, both metrics increased, with total assets growing by 8.0% and adjusted assets by 7.9%.

Difference Between Total and Adjusted Assets

The difference between total assets and adjusted total assets remained relatively consistent throughout the period, ranging from approximately US$4.18 billion in 2021 to US$4.31 billion in 2025. This suggests that the adjustments applied are systematic and do not vary significantly with the overall level of assets. The consistent difference implies a recurring item or set of items are being adjusted for.

The fluctuations in total assets, coupled with the consistent difference between total and adjusted figures, warrant further investigation into the nature of the adjustments being made. The substantial growth observed in 2023 and 2025 suggests potential acquisitions, significant capital investments, or other factors driving asset expansion.

Total liabilities exhibited fluctuations over the five-year period. Initially decreasing from 2021 to 2022, they subsequently increased through 2023, 2024, and 2025. Adjusted total liabilities mirrored this pattern, though the magnitude of change differed. A consistent pattern emerges where adjusted total liabilities are lower than reported total liabilities across all observed years.

Overall Trend in Total Liabilities

Total liabilities decreased from US$76,226 million in 2021 to US$74,914 million in 2022, representing a decline of approximately 1.7%. An upward trend then commenced, with liabilities reaching US$81,858 million in 2023, US$81,296 million in 2024, and culminating in US$86,852 million in 2025. The largest year-over-year increase occurred between 2024 and 2025.

Overall Trend in Adjusted Total Liabilities

Adjusted total liabilities followed a similar trajectory, decreasing from US$71,329 million in 2021 to US$70,585 million in 2022, a decrease of roughly 1.0%. They then increased to US$77,766 million in 2023, US$77,448 million in 2024, and US$82,724 million in 2025. The decrease between 2023 and 2024 was minimal, and the subsequent increase to 2025 was substantial.

Difference Between Total and Adjusted Liabilities

The difference between total liabilities and adjusted total liabilities remained consistently positive throughout the period, ranging from approximately US$4,900 million to US$5,100 million. This suggests the adjustments consistently reduce the reported liability figure. The gap narrowed slightly between 2022 and 2024, before widening again in 2025.

The increases in both total and adjusted liabilities from 2022 onwards warrant further investigation to determine the underlying drivers, such as increased debt financing, accrual of obligations, or changes in deferred revenue recognition. The consistent application of adjustments suggests a systematic difference in how liabilities are presented versus a potentially more conservative or refined calculation.

Total PepsiCo common shareholders’ equity exhibited an overall upward trajectory between 2021 and 2025. However, the rate of increase was not consistent throughout the period. Adjusted total equity mirrored this general trend, with minor variations.

Overall Equity Trend

From 2021 to 2022, total shareholders’ equity increased by US$1,106 million, representing a growth rate of approximately 6.9%. This growth continued from 2022 to 2023, with an increase of US$1,354 million, or roughly 7.9%. A slight decrease was observed between 2023 and 2024, with equity falling by US$462 million, a decline of approximately 2.5%. The period from 2024 to 2025 saw a substantial increase of US$2,365 million, or about 13.1%.

Adjusted Equity Trend

Adjusted total equity followed a similar pattern. It rose by US$663 million from 2021 to 2022 (approximately 4.0%), then by US$982 million from 2022 to 2023 (roughly 5.6%). A decrease of US$427 million occurred between 2023 and 2024, representing a decline of about 2.3%. Finally, adjusted equity increased by US$2,351 million from 2024 to 2025, a growth rate of approximately 13.0%.

Relationship Between Reported and Adjusted Equity

The difference between total shareholders’ equity and adjusted total equity remained relatively consistent across the observed period, fluctuating between approximately US$800 million and US$860 million. This suggests that the adjustments made to equity are systematic and do not represent large, unpredictable changes. The adjustments consistently result in a higher reported equity value.

The decrease in both total and adjusted equity between 2023 and 2024 warrants further investigation to understand the underlying causes. However, the strong recovery and growth observed between 2024 and 2025 indicate a positive trend in equity accumulation.

Over the five-year period examined, both reported and adjusted financial figures demonstrate consistent growth. Total reported debt increased from US$40,334 million in 2021 to US$49,182 million in 2025, with fluctuations observed in intervening years. Similarly, total PepsiCo common shareholders’ equity exhibited an upward trajectory, rising from US$16,043 million to US$20,406 million over the same timeframe. Total reported capital also increased, moving from US$56,377 million to US$69,588 million.

Adjusted figures largely mirror the trends observed in the reported values, though with differing magnitudes. Adjusted total debt grew from US$42,378 million in 2021 to US$53,028 million in 2025. Adjusted total equity increased from US$16,885 million to US$20,364 million during the period. Adjusted total capital rose from US$59,263 million to US$73,392 million.

Debt to Equity Ratio (Reported)

The reported debt to equity ratio increased from 2.51 in 2021 to 2.68 in 2025. This indicates a growing reliance on debt financing relative to equity. Intermediate years show some variation, with a low of 2.43 in 2022 and a high of 2.73 in 2023.

Debt to Equity Ratio (Adjusted)

The adjusted debt to equity ratio also increased, moving from 2.50 in 2021 to 2.60 in 2025. The adjusted ratio consistently remains slightly lower than the reported ratio, suggesting the adjustments primarily relate to equity components. Similar to the reported ratio, fluctuations are present, with a low of 2.45 in 2022 and a high of 2.71 in 2023.

Capital Structure Composition

The proportion of debt within the total capital structure increased slightly over the period. In 2021, debt comprised approximately 71.6% of total reported capital, rising to 70.8% in 2025. The adjusted figures show a similar pattern, with debt representing 71.4% of adjusted capital in 2021 and 72.2% in 2025. This suggests a modest shift towards greater debt financing.

Adjustments Impact

The differences between reported and adjusted figures are relatively consistent across all years. The adjustments consistently increase both total debt and total equity, but to a greater extent for debt. This suggests the adjustments may relate to the recognition of certain liabilities or the reclassification of equity items. The impact of these adjustments remains stable over the observed period.

In summary, the capitalization structure demonstrates a trend of increasing debt and equity, with a slight increase in the proportion of debt financing. The adjustments made to the financial figures consistently increase both debt and equity, indicating a systematic difference in accounting treatment or classification.

Net income attributable to PepsiCo demonstrated an initial increase followed by a decline over the five-year period. Reported net income grew from US$7,618 million in 2021 to US$8,910 million in 2022, representing a substantial year-over-year increase. This was followed by a more modest increase to US$9,074 million in 2023, then a further increase to US$9,578 million in 2024. However, 2025 saw a significant decrease in reported net income, falling to US$8,240 million.

Adjusted net income exhibited a different pattern. While reported net income increased through 2024, adjusted net income decreased from US$8,588 million in 2021 to US$8,011 million in 2022. A subsequent increase was observed in 2023, reaching US$8,568 million, but this was followed by a decrease to US$7,522 million in 2024. Notably, adjusted net income experienced a substantial increase in 2025, reaching US$10,744 million.

Trend Analysis - Reported Net Income

A generally upward trend in reported net income is evident from 2021 to 2024, with a notable reversal in 2025. The 2025 decline represents a significant deviation from the prior trend.

Trend Analysis - Adjusted Net Income

Adjusted net income demonstrates more volatility. Initial decline from 2021 to 2022 is followed by increases in 2023 and a decrease in 2024. The substantial increase in 2025 suggests the impact of significant adjustments made during that period.

Relationship between Reported and Adjusted Net Income

The difference between reported and adjusted net income varies considerably across the period. In 2021, adjusted net income exceeded reported net income by US$970 million. This relationship reversed in 2022, with reported net income exceeding adjusted net income by US$900 million. The divergence between the two metrics widened in 2024, with reported net income exceeding adjusted net income by US$2,056 million. However, in 2025, adjusted net income significantly surpassed reported net income by US$2,504 million, indicating substantial adjustments were made to arrive at the adjusted figure.

Implications of Adjustments

The substantial fluctuations in adjusted net income, particularly the significant increase in 2025, suggest the presence of noteworthy non-recurring items or accounting adjustments impacting the reported results. Further investigation into the nature of these adjustments is warranted to understand their underlying drivers and potential implications for future performance.