Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

PepsiCo Inc., liquidity ratios

 
Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
Current ratio 1.24 1.10 0.96 1.11 1.44
Quick ratio 0.93 0.80 0.62 0.80 1.00
Cash ratio 0.54 0.39 0.24 0.40 0.47

Source: Based on data from PepsiCo Inc. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. PepsiCo Inc.'s current ratio improved from 2011 to 2012 and from 2012 to 2013.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. PepsiCo Inc.'s quick ratio improved from 2011 to 2012 and from 2012 to 2013.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. PepsiCo Inc.'s cash ratio improved from 2011 to 2012 and from 2012 to 2013.

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Current Ratio

PepsiCo Inc., current ratio calculation, comparison to benchmarks

 
Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
Selected Financial Data (USD $ in millions)
Current assets 22,203  18,720  17,441  17,569  12,571 
Current liabilities 17,839  17,089  18,154  15,892  8,756 
Ratio
Current ratio1 1.24 1.10 0.96 1.11 1.44
Benchmarks
Current Ratio, Competitors
Coca-Cola Co. 1.13 1.09 1.05 1.17 1.28
Current Ratio, Sector
Soft Drinks 1.17 1.09 1.01 1.14 1.34
Current Ratio, Industry
Consumer Goods 1.15 1.14 1.12 1.16 1.09

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 22,203 ÷ 17,839 = 1.24

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. PepsiCo Inc.'s current ratio improved from 2011 to 2012 and from 2012 to 2013.

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Quick Ratio

PepsiCo Inc., quick ratio calculation, comparison to benchmarks

 
Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 9,375  6,297  4,067  5,943  3,943 
Short-term investments 303  322  358  426  192 
Accounts and notes receivable, net 6,954  7,041  6,912  6,323  4,624 
Total quick assets 16,632  13,660  11,337  12,692  8,759 
Current liabilities 17,839  17,089  18,154  15,892  8,756 
Ratio
Quick ratio1 0.93 0.80 0.62 0.80 1.00
Benchmarks
Quick Ratio, Competitors
Coca-Cola Co. 0.90 0.77 0.78 0.85 0.95
Quick Ratio, Sector
Soft Drinks 0.92 0.78 0.71 0.83 0.97
Quick Ratio, Industry
Consumer Goods 0.80 0.77 0.78 0.81 0.72

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 16,632 ÷ 17,839 = 0.93

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. PepsiCo Inc.'s quick ratio improved from 2011 to 2012 and from 2012 to 2013.

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Cash Ratio

PepsiCo Inc., cash ratio calculation, comparison to benchmarks

 
Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010 Dec 26, 2009
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 9,375  6,297  4,067  5,943  3,943 
Short-term investments 303  322  358  426  192 
Total cash assets 9,678  6,619  4,425  6,369  4,135 
Current liabilities 17,839  17,089  18,154  15,892  8,756 
Ratio
Cash ratio1 0.54 0.39 0.24 0.40 0.47
Benchmarks
Cash Ratio, Competitors
Coca-Cola Co. 0.73 0.59 0.58 0.61 0.67
Cash Ratio, Sector
Soft Drinks 0.66 0.52 0.43 0.51 0.59
Cash Ratio, Industry
Consumer Goods 0.38 0.37 0.39 0.40 0.32

Source: Based on data from PepsiCo Inc. Annual Reports

2013 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 9,678 ÷ 17,839 = 0.54

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. PepsiCo Inc.'s cash ratio improved from 2011 to 2012 and from 2012 to 2013.

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