Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

$24.99

Current Ratio
since 2005

Microsoft Excel

Paying user area


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Calculation

PepsiCo Inc., current ratio, long-term trends, calculation

Microsoft Excel

Based on: 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), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The analysis of the annual financial data reveals several noteworthy trends and changes over the examined period. The focus is on current assets, current liabilities, and the resulting current ratio, which serves as an indicator of short-term liquidity.

Current Assets
Current assets demonstrate a generally increasing trend from 2005 through 2017, rising from 10,454 million US dollars in 2005 to a peak of 31,027 million US dollars in 2017. After this peak, current assets display some volatility and a general decline, dropping to 21,893 million US dollars in 2018 and fluctuating in subsequent years, before reaching 25,826 million US dollars by the end of 2024.
Current Liabilities
Current liabilities exhibit an overall upward movement across the timeline with some fluctuations. They start at 9,406 million US dollars in 2005 and increase sharply to 18,154 million by 2011. After a slight dip, the liabilities continue to rise with marked increases in later years, culminating in a value of 31,536 million US dollars in 2024. This steady growth, especially post-2010, reflects increasing short-term obligations.
Current Ratio
The current ratio, representing the ability to cover short-term liabilities with short-term assets, fluctuates notably. Early years indicate a relatively stable or slightly strong liquidity position, with the ratio generally above 1 until a decline begins after 2013. The lowest ratios are observed from 2018 onwards, with values consistently below 1, reaching as low as 0.80 in 2022 and slightly recovering to 0.82 by 2024. This downward trend suggests a weakening liquidity position, signaling potential challenges in meeting short-term liabilities without additional financing or asset liquidation.

In summary, while current assets increased significantly in the first decade, their growth plateaued and partially reversed in later years. Concurrently, current liabilities have grown considerably, especially after 2010, outpacing asset growth in the latter period. Consequently, the current ratio's decline below unity in recent years suggests a decrease in short-term financial stability. This trend highlights increasing pressure on the company's working capital management and the potential need for strategies aimed at improving liquidity.


Comparison to Competitors

PepsiCo Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

Based on: 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), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Food, Beverage & Tobacco)


Comparison to Industry (Consumer Staples)