Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

PepsiCo Inc., adjusted financial ratios

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Activity Ratio
Total Asset Turnover
Reported 0.91 0.94 0.86 0.76 0.86
Adjusted 0.95 0.98 0.90 0.79 0.90
Liquidity Ratio
Current Ratio
Reported 0.85 0.80 0.83 0.98 0.86
Adjusted 0.86 0.81 0.84 0.99 0.87
Solvency Ratios
Debt to Equity
Reported 2.38 2.28 2.51 3.28 2.17
Adjusted 2.55 2.36 2.51 3.32 2.26
Debt to Capital
Reported 0.70 0.69 0.72 0.77 0.68
Adjusted 0.72 0.70 0.72 0.77 0.69
Financial Leverage
Reported 5.43 5.38 5.76 6.91 5.31
Adjusted 5.22 5.02 5.22 6.43 5.00
Profitability Ratios
Net Profit Margin
Reported 9.92% 10.31% 9.59% 10.12% 10.89%
Adjusted 9.37% 9.27% 10.81% 8.82% 12.52%
Return on Equity (ROE)
Reported 49.04% 51.96% 47.48% 52.92% 49.47%
Adjusted 46.49% 45.65% 50.86% 45.03% 56.61%
Return on Assets (ROA)
Reported 9.03% 9.67% 8.25% 7.66% 9.31%
Adjusted 8.91% 9.09% 9.74% 7.00% 11.32%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. PepsiCo Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. PepsiCo Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. PepsiCo Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. PepsiCo Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 PepsiCo Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. PepsiCo Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. PepsiCo Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. PepsiCo Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

PepsiCo Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Net revenue 91,471 86,392 79,474 70,372 67,161
Total assets 100,495 92,187 92,377 92,918 78,547
Activity Ratio
Total asset turnover1 0.91 0.94 0.86 0.76 0.86
Adjusted
Selected Financial Data (US$ in millions)
Net revenue 91,471 86,392 79,474 70,372 67,161
Adjusted total assets2 96,196 88,133 88,214 88,747 74,293
Activity Ratio
Adjusted total asset turnover3 0.95 0.98 0.90 0.79 0.90

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Total asset turnover = Net revenue ÷ Total assets
= 91,471 ÷ 100,495 = 0.91

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 91,471 ÷ 96,196 = 0.95

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. PepsiCo Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 26,950 21,539 21,783 23,001 17,645
Current liabilities 31,647 26,785 26,220 23,372 20,461
Liquidity Ratio
Current ratio1 0.85 0.80 0.83 0.98 0.86
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 27,125 21,689 21,930 23,202 17,750
Current liabilities 31,647 26,785 26,220 23,372 20,461
Liquidity Ratio
Adjusted current ratio3 0.86 0.81 0.84 0.99 0.87

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 26,950 ÷ 31,647 = 0.85

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 27,125 ÷ 31,647 = 0.86

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. PepsiCo Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 44,105 39,071 40,334 44,150 32,068
Total PepsiCo common shareholders’ equity 18,503 17,149 16,043 13,454 14,786
Solvency Ratio
Debt to equity1 2.38 2.28 2.51 3.28 2.17
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 47,061 41,487 42,378 45,843 33,628
Adjusted total equity3 18,430 17,548 16,885 13,792 14,854
Solvency Ratio
Adjusted debt to equity4 2.55 2.36 2.51 3.32 2.26

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Debt to equity = Total debt ÷ Total PepsiCo common shareholders’ equity
= 44,105 ÷ 18,503 = 2.38

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 47,061 ÷ 18,430 = 2.55

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. PepsiCo Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 44,105 39,071 40,334 44,150 32,068
Total capital 62,608 56,220 56,377 57,604 46,854
Solvency Ratio
Debt to capital1 0.70 0.69 0.72 0.77 0.68
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 47,061 41,487 42,378 45,843 33,628
Adjusted total capital3 65,491 59,035 59,263 59,635 48,482
Solvency Ratio
Adjusted debt to capital4 0.72 0.70 0.72 0.77 0.69

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 44,105 ÷ 62,608 = 0.70

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 47,061 ÷ 65,491 = 0.72

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. PepsiCo Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 100,495 92,187 92,377 92,918 78,547
Total PepsiCo common shareholders’ equity 18,503 17,149 16,043 13,454 14,786
Solvency Ratio
Financial leverage1 5.43 5.38 5.76 6.91 5.31
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 96,196 88,133 88,214 88,747 74,293
Adjusted total equity3 18,430 17,548 16,885 13,792 14,854
Solvency Ratio
Adjusted financial leverage4 5.22 5.02 5.22 6.43 5.00

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Financial leverage = Total assets ÷ Total PepsiCo common shareholders’ equity
= 100,495 ÷ 18,503 = 5.43

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 96,196 ÷ 18,430 = 5.22

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 PepsiCo Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Adjusted Net Profit Margin

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to PepsiCo 9,074 8,910 7,618 7,120 7,314
Net revenue 91,471 86,392 79,474 70,372 67,161
Profitability Ratio
Net profit margin1 9.92% 10.31% 9.59% 10.12% 10.89%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 8,568 8,011 8,588 6,210 8,409
Net revenue 91,471 86,392 79,474 70,372 67,161
Profitability Ratio
Adjusted net profit margin3 9.37% 9.27% 10.81% 8.82% 12.52%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to PepsiCo ÷ Net revenue
= 100 × 9,074 ÷ 91,471 = 9.92%

2 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 8,568 ÷ 91,471 = 9.37%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. PepsiCo Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to PepsiCo 9,074 8,910 7,618 7,120 7,314
Total PepsiCo common shareholders’ equity 18,503 17,149 16,043 13,454 14,786
Profitability Ratio
ROE1 49.04% 51.96% 47.48% 52.92% 49.47%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 8,568 8,011 8,588 6,210 8,409
Adjusted total equity3 18,430 17,548 16,885 13,792 14,854
Profitability Ratio
Adjusted ROE4 46.49% 45.65% 50.86% 45.03% 56.61%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
ROE = 100 × Net income attributable to PepsiCo ÷ Total PepsiCo common shareholders’ equity
= 100 × 9,074 ÷ 18,503 = 49.04%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 8,568 ÷ 18,430 = 46.49%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. PepsiCo Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to PepsiCo 9,074 8,910 7,618 7,120 7,314
Total assets 100,495 92,187 92,377 92,918 78,547
Profitability Ratio
ROA1 9.03% 9.67% 8.25% 7.66% 9.31%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 8,568 8,011 8,588 6,210 8,409
Adjusted total assets3 96,196 88,133 88,214 88,747 74,293
Profitability Ratio
Adjusted ROA4 8.91% 9.09% 9.74% 7.00% 11.32%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
ROA = 100 × Net income attributable to PepsiCo ÷ Total assets
= 100 × 9,074 ÷ 100,495 = 9.03%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 8,568 ÷ 96,196 = 8.91%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. PepsiCo Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.