Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

PepsiCo Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 27, 2025	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021
Short-term debt obligations	6,861)	7,082)	6,510)	3,414)	4,308)
Accounts payable	11,704)	10,997)	11,635)	10,732)	9,834)
Accrued marketplace spending	3,512)	3,458)	3,523)	3,637)	3,087)
Accrued compensation and benefits	2,230)	2,256)	2,687)	2,519)	2,324)
Dividends payable	1,967)	1,885)	1,767)	1,610)	1,508)
Current operating lease liabilities	719)	642)	556)	483)	446)
Other current liabilities	5,771)	5,216)	4,969)	4,390)	3,960)
Accounts payable and other current liabilities	25,903)	24,454)	25,137)	23,371)	21,159)
Liabilities held for sale	—)	—)	—)	—)	753)
Current liabilities	32,764)	31,536)	31,647)	26,785)	26,220)
Long-term debt obligations, excluding current maturities	42,321)	37,224)	37,595)	35,657)	36,026)
Deferred income taxes	3,802)	3,484)	3,895)	4,133)	4,826)
Other liabilities	7,965)	9,052)	8,721)	8,339)	9,154)
Noncurrent liabilities	54,088)	49,760)	50,211)	48,129)	50,006)
Total liabilities	86,852)	81,296)	81,858)	74,914)	76,226)
Common stock, par value 1⅔¢ per share	23)	23)	23)	23)	23)
Capital in excess of par value	4,451)	4,385)	4,261)	4,134)	4,001)
Retained earnings	72,788)	72,266)	70,035)	67,800)	65,165)
Accumulated other comprehensive loss	(15,024)	(17,612)	(15,534)	(15,302)	(14,898)
Repurchased common stock, in excess of par value	(41,832)	(41,021)	(40,282)	(39,506)	(38,248)
Total PepsiCo common shareholders’ equity	20,406)	18,041)	18,503)	17,149)	16,043)
Noncontrolling interests	141)	130)	134)	124)	108)
Total equity	20,547)	18,171)	18,637)	17,273)	16,151)
Total liabilities and equity	107,399)	99,467)	100,495)	92,187)	92,377)

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).

PepsiCo’s liabilities and stockholders’ equity demonstrate notable shifts between 2021 and 2025. Total liabilities increased substantially over the period, while total equity also grew, though at a comparatively slower rate. A closer examination reveals specific areas driving these changes.

Short-Term Debt & Accounts Payable: Short-term debt obligations exhibited volatility, decreasing initially in 2022 before rising in 2023 and 2024, and then decreasing slightly in 2025. Accounts payable consistently increased from 2021 to 2025, indicating a potential increase in reliance on trade credit or higher purchasing volumes. Accrued marketplace spending remained relatively stable, with minor fluctuations throughout the period. Accrued compensation and benefits decreased in 2024 and 2025 after a steady increase, potentially reflecting workforce adjustments or changes in benefit plans. Dividends payable showed a consistent upward trend, suggesting a commitment to returning value to shareholders.
Current vs. Noncurrent Liabilities: Current liabilities generally increased from 2021 to 2025, with a significant jump in 2023. This increase was driven by growth in accounts payable and other current liabilities. Noncurrent liabilities also increased, particularly between 2024 and 2025, primarily due to a rise in long-term debt obligations. The proportion of total liabilities represented by noncurrent liabilities remained relatively stable, hovering around 60-65%.
Equity Components: Common stock remained constant throughout the period. Capital in excess of par value experienced modest growth, while retained earnings demonstrated a consistent upward trend, reflecting accumulated profits. Accumulated other comprehensive loss increased in magnitude from 2021 to 2023, then decreased in 2025, potentially due to changes in foreign currency translation adjustments or pension liabilities. Repurchased common stock consistently increased, indicating ongoing share buyback programs. Total PepsiCo common shareholders’ equity increased steadily, but at a slower pace than the growth in total liabilities.
Overall Financial Position: Total liabilities and equity increased significantly from US$92.377 billion in 2021 to US$107.399 billion in 2025. The increase in total liabilities outpaced the growth in total equity, resulting in a slightly higher proportion of the company’s funding coming from debt and other obligations. The company maintained a positive equity position throughout the period, but the increasing reliance on liabilities warrants continued monitoring.

The observed trends suggest PepsiCo is actively managing its financial structure, utilizing both debt and equity financing. The consistent growth in retained earnings indicates profitability, while the share repurchase program suggests confidence in future performance. However, the increasing level of liabilities requires ongoing assessment to ensure financial stability and flexibility.

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PepsiCo Inc. (NASDAQ:PEP)

Balance Sheet: Liabilities and Stockholders’ Equity