Debt to Equity
since 2005
Calculation
PepsiCo Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt obligations1 | ÷ | Total PepsiCo shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 28, 2024 | 2.46 | = | 44,306) | ÷ | 18,041) |
| Dec 30, 2023 | 2.38 | = | 44,105) | ÷ | 18,503) |
| Dec 31, 2022 | 2.28 | = | 39,071) | ÷ | 17,149) |
| Dec 25, 2021 | 2.51 | = | 40,334) | ÷ | 16,043) |
| Dec 26, 2020 | 3.28 | = | 44,150) | ÷ | 13,454) |
| Dec 28, 2019 | 2.17 | = | 32,068) | ÷ | 14,786) |
| Dec 29, 2018 | 2.23 | = | 32,321) | ÷ | 14,518) |
| Dec 30, 2017 | 3.61 | = | 39,281) | ÷ | 10,889) |
| Dec 31, 2016 | 3.33 | = | 36,945) | ÷ | 11,095) |
| Dec 26, 2015 | 2.79 | = | 33,284) | ÷ | 11,923) |
| Dec 27, 2014 | 1.66 | = | 28,897) | ÷ | 17,438) |
| Dec 28, 2013 | 1.22 | = | 29,639) | ÷ | 24,279) |
| Dec 29, 2012 | 1.27 | = | 28,359) | ÷ | 22,294) |
| Dec 31, 2011 | 1.30 | = | 26,773) | ÷ | 20,588) |
| Dec 25, 2010 | 1.18 | = | 24,897) | ÷ | 21,164) |
| Dec 26, 2009 | 0.47 | = | 7,864) | ÷ | 16,804) |
| Dec 27, 2008 | 0.68 | = | 8,227) | ÷ | 12,106) |
| Dec 29, 2007 | 0.24 | = | 4,203) | ÷ | 17,234) |
| Dec 30, 2006 | 0.18 | = | 2,824) | ÷ | 15,368) |
| Dec 31, 2005 | 0.37 | = | 5,202) | ÷ | 14,251) |
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 financial data reveals significant fluctuations and evolving trends in the company's capital structure over the examined period.
- Total debt obligations
- The total debt obligations exhibited considerable volatility. Initially, debt obligations decreased sharply from 5,202 million USD in 2005 to 2,824 million USD in 2006, then rose and fell through 2009. A marked increase occurred starting in 2010, reaching a peak of 44,150 million USD by 2020. Despite some declines between 2020 and 2023, the debt level remained elevated, ending close to 44,306 million USD in 2024. This pattern suggests periods of significant borrowing, possibly for expansion or restructuring initiatives, with debt remaining substantially higher compared to the initial years.
- Total PepsiCo shareholders’ equity
- Shareholders’ equity showed a more moderate trend with occasional declines. From 14,251 million USD in 2005, equity rose to a high of 24,279 million USD by 2013. However, a notable decline followed 2013, dropping to 10,889 million USD by 2017. After this trough, equity gradually increased again, reaching a peak of 18,503 million USD in 2023 before slightly decreasing to 18,041 million USD in 2024. Overall, equity levels demonstrated volatility but with gradual recovery in the latter years.
- Debt to equity ratio
- The debt to equity ratio indicates a clear trend of rising leverage with fluctuations. Initially low at 0.37 in 2005 and dropping to 0.18 in 2006, the ratio increased sharply during 2008 to 2009, reflecting higher debt relative to equity. From 2010, the ratio climbed notably, peaking between 2016 and 2018 at over 3.3, indicating debt was more than triple the equity during these years. Although the ratio declined somewhat from 2019 onwards, it stabilized around 2.3 to 2.5 by 2024, highlighting persistent reliance on debt financing relative to equity capital.
In summary, the data depicts a company that has substantially increased its debt over the past two decades with considerable variability in equity. The leverage, as expressed by the debt to equity ratio, escalated significantly, pointing to an increased financial risk profile. The partial reduction in leverage in recent years may indicate efforts toward deleveraging or equity strengthening, but debt levels remain comparatively high. This evolving financial structure requires careful monitoring to balance growth objectives with risk management.
Comparison to Competitors
PepsiCo Inc., debt to equity, long-term trends, comparison to competitors
| PepsiCo Inc. | Coca-Cola Co. | Mondelēz International Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|
| Dec 28, 2024 | 2.46 | 1.79 | 0.66 | — |
| Dec 30, 2023 | 2.38 | 1.62 | 0.69 | — |
| Dec 31, 2022 | 2.28 | 1.62 | 0.85 | — |
| Dec 25, 2021 | 2.51 | 1.86 | 0.69 | — |
| Dec 26, 2020 | 3.28 | 2.22 | 0.73 | — |
| Dec 28, 2019 | 2.17 | 2.25 | 0.68 | — |
| Dec 29, 2018 | 2.23 | 2.56 | 0.72 | — |
| Dec 30, 2017 | 3.61 | 2.79 | 0.68 | — |
| Dec 31, 2016 | 3.33 | 1.98 | 0.68 | — |
| Dec 26, 2015 | 2.79 | 1.73 | 0.55 | — |
| Dec 27, 2014 | 1.66 | 1.38 | 0.60 | — |
| Dec 28, 2013 | 1.22 | 1.12 | 0.53 | — |
| Dec 29, 2012 | 1.27 | 0.99 | 0.60 | — |
| Dec 31, 2011 | 1.30 | 0.90 | 0.76 | 80.98 |
| Dec 25, 2010 | 1.18 | 0.76 | 0.80 | 4.71 |
| Dec 26, 2009 | 0.47 | 0.48 | 0.73 | 2.70 |
| Dec 27, 2008 | 0.68 | 0.45 | 0.91 | 1.59 |
| Dec 29, 2007 | 0.24 | 0.43 | 0.77 | — |
| Dec 30, 2006 | 0.18 | 0.27 | 0.36 | — |
| Dec 31, 2005 | 0.37 | 0.35 | 0.36 | — |
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)
PepsiCo Inc., debt to equity, long-term trends, comparison to sector (food, beverage & tobacco)
| PepsiCo Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 28, 2024 | 2.46 | 2.62 |
| Dec 30, 2023 | 2.38 | 2.49 |
| Dec 31, 2022 | 2.28 | 2.44 |
| Dec 25, 2021 | 2.51 | 2.28 |
| Dec 26, 2020 | 3.28 | 2.90 |
| Dec 28, 2019 | 2.17 | 2.51 |
| Dec 29, 2018 | 2.23 | 2.82 |
| Dec 30, 2017 | 3.61 | 3.31 |
| Dec 31, 2016 | 3.33 | 2.76 |
| Dec 26, 2015 | 2.79 | 2.32 |
| Dec 27, 2014 | 1.66 | 1.86 |
| Dec 28, 2013 | 1.22 | 1.36 |
| Dec 29, 2012 | 1.27 | 1.23 |
| Dec 31, 2011 | 1.30 | 1.15 |
| Dec 25, 2010 | 1.18 | 1.02 |
| Dec 26, 2009 | 0.47 | 0.74 |
| Dec 27, 2008 | 0.68 | 0.80 |
| Dec 29, 2007 | 0.24 | 0.52 |
| Dec 30, 2006 | 0.18 | 0.29 |
| Dec 31, 2005 | 0.37 | 0.36 |
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 Industry (Consumer Staples)
PepsiCo Inc., debt to equity, long-term trends, comparison to industry (consumer staples)
| PepsiCo Inc. | Consumer Staples | |
|---|---|---|
| Dec 28, 2024 | 2.46 | 1.11 |
| Dec 30, 2023 | 2.38 | 1.15 |
| Dec 31, 2022 | 2.28 | 1.07 |
| Dec 25, 2021 | 2.51 | 1.07 |
| Dec 26, 2020 | 3.28 | 1.24 |
| Dec 28, 2019 | 2.17 | 1.18 |
| Dec 29, 2018 | 2.23 | 1.11 |
| Dec 30, 2017 | 3.61 | 1.20 |
| Dec 31, 2016 | 3.33 | 1.09 |
| Dec 26, 2015 | 2.79 | 1.00 |
| Dec 27, 2014 | 1.66 | 0.96 |
| Dec 28, 2013 | 1.22 | 0.87 |
| Dec 29, 2012 | 1.27 | 0.83 |
| Dec 31, 2011 | 1.30 | 0.80 |
| Dec 25, 2010 | 1.18 | 0.74 |
| Dec 26, 2009 | 0.47 | 0.69 |
| Dec 27, 2008 | 0.68 | 0.68 |
| Dec 29, 2007 | 0.24 | 0.55 |
| Dec 30, 2006 | 0.18 | 0.52 |
| Dec 31, 2005 | 0.37 | 0.59 |
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).