PepsiCo Inc. (NASDAQ:PEP)

The analysis of the financial data reveals several notable trends and shifts in the asset composition over the observed periods.

Liquidity and Current Assets

The proportion of cash and cash equivalents relative to total assets demonstrated a general decline from the beginning of the period, falling from 13.04% to a low of approximately 5.13%-6.38% between 2022 and early 2023. However, it showed signs of recovery in later periods, reaching above 8% by 2025. Short-term investments remained a minor component, generally fluctuating below 1%, with occasional modest increases in the most recent periods. Accounts and notes receivable as a percentage of total assets showed a gradual increase, rising from just under 10% to around 12% in some quarters, indicating possibly higher sales on credit or delayed collections. Inventory levels rose moderately from around 4.2% to over 6% at their peak, with raw materials and packaging showing a steady incremental increase, suggesting growing investment in production inputs. Work-in-process remained relatively stable but low, below 0.15%, while finished goods inventory also increased slightly over time. Overall, current assets as a proportion of total assets experienced fluctuations around the mid-20% range, briefly dipping to as low as 23% and rising back close to 28% at a peak in 2023, reflecting somewhat variable liquidity positioning.

Long-Term and Noncurrent Assets

Property, plant, and equipment (PP&E) maintained a dominant share, consistently around 50% or slightly higher, increasing to about 55% in the latter periods. Accumulated depreciation showed a steady negative offset, stabilizing near -27% to -28% of total assets, leaving net PP&E in the range of approximately 22% to 28%, with a notable upward trend in recent periods indicating ongoing asset investments or slower asset write-downs. Intangible assets comprised a significant portion of total assets, although a declining trend was observed over time. Amortizable intangible assets decreased gradually from about 1.7% to nearly 1.1%, while goodwill remained relatively stable around 18%-20% but experienced a slight reduction toward the end. Other indefinite-lived intangible assets showed a more pronounced decrease from over 17% down to approximately 12.7%, contributing to the overall decreasing trend in total intangible assets from nearly 37% to close to 32%. Investments in noncontrolled affiliates declined steadily from above 3% to just below 2% by the end of the period, indicating either divestments or reclassifications. Deferred income taxes remained fairly stable around 4% to 5%. Other noncurrent assets increased steadily from under 4% to over 8%, suggesting accumulation of miscellaneous long-term holdings or capitalized expenses. Noncurrent assets as a share of total assets stayed consistently high, around 70% to 75%, underscoring the asset-heavy nature.

Summary of Asset Structure Changes

The asset base saw a modest shift away from liquid assets like cash and equivalents toward more invested and fixed assets, including PP&E and intangible assets. The increase in net PP&E indicates potential capital expenditure growth. Meanwhile, the reduction in intangible assets, especially indefinite-lived, reflects possible amortization or impairment events. The steady rise in inventories and accounts receivable suggests expanding operational activity or possibly slower turnover rates. Stability in deferred tax assets contrasts with the variability in other long-term assets. Overall, the asset composition presents an entity consolidating its investment in productive assets while managing liquidity and intangible assets conservatively.