PepsiCo Inc. (NASDAQ:PEP)

Total Asset Turnover

The reported total asset turnover ratio shows a generally increasing trend from 0.76 in 2020 to 0.92 in 2024, peaking at 0.94 in 2022 before a slight dip. The adjusted total asset turnover mirrors this pattern with values rising from 0.79 in 2020 to 0.96 in 2024, indicating consistent improvement in asset utilization efficiency over the period.

Current Ratio

The reported current ratio declines from 0.98 in 2020 to 0.82 in 2024, with minor fluctuations. The adjusted current ratio follows a similar downward trend, decreasing from 0.99 to 0.83, suggesting a slight reduction in short-term liquidity position throughout the years.

Debt to Equity Ratio

Reported debt to equity shows a notable decrease from 3.28 in 2020 to 2.28 in 2022, followed by a modest increase to 2.46 in 2024. Adjusted debt to equity figures reflect this trend with values dropping to 2.36 in 2022 and then rising to 2.65 by 2024. This pattern indicates that although the company reduced its leverage significantly by 2022, there has been a tendency to increase debt relative to equity in the subsequent years.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios reveal a steady decline from 0.77 in 2020 to around 0.69-0.70 in 2022, followed by a slight increase up to approximately 0.71-0.73 in 2024. Despite some recovery, leverage as a proportion of capital remains moderately below earlier levels, indicating cautious use of debt relative to overall capital structure.

Financial Leverage

The reported financial leverage decreases significantly from 6.91 in 2020 to 5.38 in 2022, then edges upward to 5.51 in 2024. Adjusted leverage echoes this trend with a drop from 6.43 to 5.02, followed by a modest increase to 5.3. This reflects a reduction in reliance on debt financing over the early years, with a slight increase more recently.

Net Profit Margin

The reported net profit margin fluctuates, starting at 10.12% in 2020, dipping to 9.59% in 2021, rising to 10.43% in 2024, and peaking at 10.31% in 2022. Adjusted net profit margin shows a peak at 10.81% in 2021, but a downward trend thereafter reaching 8.19% by 2024. This divergence may indicate adjustments affecting profitability measures differently, but overall, reported margins exhibit relative stability with modest growth at the end of the period.

Return on Equity (ROE)

The reported ROE declines from 52.92% in 2020 to 47.48% in 2021, then exhibits recovery to 53.09% by 2024. Adjusted ROE rises to 50.86% in 2021 but steadily decreases to 41.76% by 2024. The disparity suggests that while reported earnings relative to equity remain strong, adjusted results present a more conservative outlook with declining profitability on equity.

Return on Assets (ROA)

Reported ROA increases from 7.66% in 2020 to a high of 9.67% in 2022, followed by a slight reduction to 9.63% in 2024. Adjusted ROA peaks at 9.74% in 2021, then declines to 7.88% in 2024. This indicates that asset profitability has improved initially but has somewhat waned in recent years according to adjusted metrics, while reported data suggest sustained asset returns.

Net Revenue

Net revenue exhibited a consistent upward trend over the analyzed periods, increasing from US$70,372 million in 2020 to US$91,854 million in 2024. The growth rate was steady with notable increments each year, reflecting positive sales or pricing growth contributing to higher revenue generation.

Total Assets

Total assets showed relative stability from 2020 through 2022, fluctuating slightly around the US$92,000 million mark. A marked increase occurred in 2023, rising to US$100,495 million, followed by a slight decrease to US$99,467 million in 2024. This pattern suggests an expansion phase in 2023 with some asset reduction or revaluation in the subsequent year.

Reported Total Asset Turnover

The reported total asset turnover ratio improved consistently from 0.76 in 2020 to 0.94 in 2022, denoting enhanced efficiency in using assets to generate revenue during these years. A minor decline to 0.91 occurred in 2023, with a slight recovery to 0.92 in 2024. Overall, the ratio indicates a generally positive efficiency trend over the period.

Adjusted Total Assets

Adjusted total assets followed a similar trend to reported total assets, stable around US$88,000 million from 2020 through 2022, rising notably to US$96,196 million in 2023, then marginally decreasing to US$95,461 million in 2024. This adjusted measure reflects a more consistent asset base adjustment comparable with the reported figures.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio shows improvement from 0.79 in 2020 to a peak of 0.98 in 2022, indicating increasing operational efficiency in using adjusted assets to generate revenue. It slightly declined to 0.95 in 2023 and improved again to 0.96 in 2024, demonstrating maintained strong asset utilization efficiency even after adjustment.

Current Assets

Current assets exhibited a generally stable pattern from 2020 to 2024, with values fluctuating slightly. Starting at 23,001 million USD in 2020, there was a minor decline over the next two years, reaching 21,539 million USD in 2022, followed by a notable increase to 26,950 million USD in 2023, and a slight reduction to 25,826 million USD in 2024.

Current Liabilities

Current liabilities demonstrated a consistent upward trend throughout the period. Beginning at 23,372 million USD in 2020, liabilities rose yearly, peaking at 31,647 million USD in 2023 before slightly decreasing to 31,536 million USD in 2024, indicating growing short-term obligations over the five-year span.

Reported Current Ratio

The reported current ratio showed a downward trajectory from 0.98 in 2020 to its lowest point of 0.80 in 2022, reflecting decreasing short-term liquidity. There was a modest recovery in 2023 to 0.85, but it marginally declined again to 0.82 in 2024, suggesting persistent pressure on the company's ability to cover current liabilities with current assets.

Adjusted Current Assets

Adjusted current assets mirrored the trend seen in current assets, starting at 23,202 million USD in 2020, decreasing over the next two years to 21,689 million USD in 2022, then rising to 27,125 million USD in 2023 and slightly falling to 26,182 million USD in 2024. This adjustment did not markedly alter the observed pattern of asset levels.

Adjusted Current Ratio

The adjusted current ratio followed a similar pattern to the reported ratio, starting close to parity at 0.99 in 2020, declining to 0.81 in 2022, experiencing a rebound to 0.86 in 2023, and then declining slightly to 0.83 in 2024. The adjustment yields a marginally higher ratio than the reported figures but confirms the trend of liquidity challenges during the period.

Total Debt

The total debt exhibited a decreasing trend from 44,150 million USD in 2020 to 39,071 million USD in 2022. However, there was a reversal of this trend starting in 2023, with total debt increasing to 44,105 million USD in 2023 and further to 44,306 million USD in 2024.

Total PepsiCo Common Shareholders’ Equity

Shareholders' equity showed consistent growth from 13,454 million USD in 2020 to a peak of 18,503 million USD in 2023, before slightly declining to 18,041 million USD in 2024. The overall trajectory indicates strengthening equity positions over the five-year period.

Reported Debt to Equity Ratio

The reported debt to equity ratio decreased substantially from 3.28 in 2020 to 2.28 in 2022, reflecting improved leverage and equity strengthening relative to debt. However, from 2023 onward, the ratio increased marginally to 2.38 in 2023 and 2.46 in 2024, suggesting a slight increase in leverage.

Adjusted Total Debt

Adjusted total debt mirrored the trend of total debt, decreasing from 45,843 million USD in 2020 to 41,487 million USD in 2022, followed by a consistent rise to 47,061 million USD in 2023 and 47,751 million USD in 2024. This indicates an increase in debt obligations when accounting for adjustments starting in 2023.

Adjusted Total Equity

Adjusted equity increased steadily from 13,792 million USD in 2020 to 18,430 million USD in 2023, then slightly decreased to 18,013 million USD in 2024. The similarity to the reported equity trend suggests consistent equity valuation adjustments.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio improved significantly from 3.32 in 2020 to 2.36 in 2022, indicating better financial leverage management. However, this ratio rose to 2.55 in 2023 and to 2.65 in 2024, illustrating a trend of increased financial leverage or debt relative to equity in the most recent years.

Total Debt

The total debt showed a decline from 44,150 million USD in 2020 to 39,071 million USD in 2022. However, it increased again in 2023 to 44,105 million USD and slightly rose to 44,306 million USD in 2024, indicating a reduction phase followed by a recovery in debt levels.

Total Capital

Total capital decreased marginally from 57,604 million USD in 2020 to 56,220 million USD in 2022. Afterward, it increased significantly to 62,608 million USD in 2023 and slightly decreased to 62,347 million USD in 2024, reflecting a period of capital contraction followed by expansion.

Reported Debt to Capital Ratio

The debt to capital ratio declined steadily from 0.77 in 2020 to 0.69 in 2022, suggesting an improvement in the company’s capital structure by reducing debt relative to total capital. From 2022 onwards, the ratio increased moderately to 0.7 in 2023 and 0.71 in 2024.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported total debt, decreasing from 45,843 million USD in 2020 to 41,487 million USD in 2022, then rising to 47,061 million USD in 2023 and 47,751 million USD in 2024. This pattern indicates adjustments did not significantly alter the overall debt trend.

Adjusted Total Capital

Adjusted total capital remained relatively stable from 59,635 million USD in 2020 to 59,035 million USD in 2022. Subsequently, it increased markedly to 65,491 million USD in 2023 and further to 65,764 million USD in 2024, indicating a strengthening of the capital base on an adjusted basis.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio mirrored the reported ratio's trend, reducing from 0.77 in 2020 to 0.70 in 2022 and then increasing slightly to 0.72 in 2023 and 0.73 in 2024, signifying a modest rise in leverage after an initial deleveraging period.

Total Assets

Total assets demonstrated a relatively stable pattern from 2020 through 2022, with values around 92,000 million US dollars. A notable increase occurred in 2023, reaching approximately 100,495 million US dollars, followed by a slight decline in 2024 to about 99,467 million US dollars.

Total Common Shareholders’ Equity

Common shareholders’ equity showed a consistent upward trend from 13,454 million US dollars in 2020 to 18,503 million US dollars in 2023, indicating growth in equity over the period. However, a minor decrease to 18,041 million US dollars was observed in 2024.

Reported Financial Leverage

Reported financial leverage steadily declined from 6.91 in 2020 to 5.38 in 2022, suggesting a reduction in leverage or increased equity relative to debt during this period. The ratio then slightly increased in 2023 to 5.43 and to 5.51 in 2024, indicating a moderate rise in leverage in the last two years.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, remaining stable around 88,000 million US dollars from 2020 to 2022 then increasing sharply in 2023 to 96,196 million US dollars and slightly decreasing to 95,461 million US dollars in 2024.

Adjusted Total Equity

Adjusted total equity increased steadily from 13,792 million US dollars in 2020 to a peak of 18,430 million US dollars in 2023, with a slight decline to 18,013 million US dollars in 2024, mirroring the trend seen in reported equity figures.

Adjusted Financial Leverage

The adjusted financial leverage ratio declined from 6.43 in 2020 to 5.02 in 2022, indicating improved financial stability and lower leverage. Subsequently, it rose slightly to 5.22 in 2023 and 5.3 in 2024, reflecting a modest increase in leverage similar to the reported financial leverage trend.

Net Income Attributable to PepsiCo

The net income shows a generally upward trend over the five-year period. Starting at 7,120 million US dollars in 2020, it increased steadily to 7,618 million in 2021, followed by a significant rise to 8,910 million in 2022. The growth continued but at a slower pace, reaching 9,074 million in 2023 and 9,578 million in 2024. This pattern indicates sustained profitability improvement over the years.

Net Revenue

Net revenue also exhibits a consistent increase year-over-year from 70,372 million US dollars in 2020 to 91,854 million in 2024. The growth rate appears strong between 2020 and 2022, with a slightly slower increase observed in 2023 and 2024. This steady rise in revenue aligns with the upward trend seen in net income, suggesting effective revenue generation and potential market expansion or price adjustments.

Reported Net Profit Margin

The reported net profit margin fluctuated moderately but remained around 10 percent throughout the period. Starting at 10.12% in 2020, it experienced a slight dip to 9.59% in 2021, then rebounded to 10.31% in 2022. It decreased again to 9.92% in 2023 before rising to 10.43% in 2024. These fluctuations imply some variability in cost management or pricing effectiveness but generally demonstrate stable profitability relative to revenue.

Adjusted Net Income

Adjusted net income showed more variation compared to reported net income. It increased significantly from 6,210 million in 2020 to 8,588 million in 2021, then declined to 8,011 million in 2022. This was followed by a partial recovery to 8,568 million in 2023 before falling notably to 7,522 million in 2024. The volatility suggests that adjustments to net income, potentially related to one-time items or non-operational factors, affected profitability in specific years.

Adjusted Net Profit Margin

The adjusted net profit margin mirrors the volatility seen in adjusted net income. It rose sharply from 8.82% in 2020 to 10.81% in 2021, then dropped to 9.27% in 2022. The margin remained relatively stable at 9.37% in 2023 before declining to 8.19% in 2024, the lowest in the period considered. This downward trend in 2024 may indicate increased costs or other negative impacts not reflected in the reported net profit margin.

Summary

Overall, the financial data illustrates growth in both net income and net revenue, signifying expanding operations and effective revenue growth strategies. Profitability as measured by reported net profit margin has remained relatively stable, with minor fluctuations. In contrast, adjusted profit figures display more pronounced variability, signaling that non-recurring or irregular factors have periodically influenced profitability. The decline in adjusted profit margin in the final year warrants further scrutiny to understand underlying causes such as cost pressures or changes in non-operational items.

Net Income Attributable to PepsiCo

There is a consistent upward trend in net income over the five-year period, increasing from $7,120 million in 2020 to $9,578 million in 2024. This reflects a steady growth in profitability.

Total Common Shareholders’ Equity

Shareholders' equity shows a steady increase from $13,454 million in 2020, peaking at $18,503 million in 2023, before experiencing a slight decline to $18,041 million in 2024. Overall, the equity base has expanded considerably over the period.

Reported Return on Equity (ROE)

The reported ROE exhibits some fluctuations but remains strong, ranging from a low of 47.48% in 2021 to a high of 53.09% in 2024. The ROE declined in 2021, rebounded in 2022, dipped in 2023, and rose again in 2024, indicating variability in net income relative to shareholders' equity.

Adjusted Net Income

Adjusted net income shows more variability compared to reported net income. It increased sharply in 2021 to $8,588 million, dropped in 2022 to $8,011 million, fluctuated in 2023 at $8,568 million, and then declined notably to $7,522 million in 2024. This suggests that non-recurring or special items impacting adjusted figures varied over time.

Adjusted Total Equity

Adjusted equity follows a pattern similar to total equity, rising from $13,792 million in 2020 to a peak of $18,430 million in 2023 before decreasing slightly to $18,013 million in 2024. This trend indicates overall growth in equity but with slight contraction in the final year.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE increased significantly in 2021 to 50.86% from 45.03% in 2020, then declined over the next three years, reaching 41.76% in 2024. This consistent decline contrasts with the reported ROE pattern and may reflect less favorable performance when special items are excluded or changes in equity structure.

The financial data indicates several notable trends over the analyzed period. Net income attributable to the company shows a consistent upward trajectory, increasing from US$7,120 million in 2020 to US$9,578 million in 2024. This suggests overall growth in profitability during the five-year span.

Total assets exhibit relative stability with minor fluctuations. The value decreased slightly from US$92,918 million in 2020 to US$92,187 million in 2022, followed by a significant increase to US$100,495 million in 2023 before slightly declining to US$99,467 million in 2024. This pattern indicates some asset growth, particularly in the period between 2022 and 2023.

Reported Return on Assets (ROA) demonstrates an improving trend from 7.66% in 2020 to a peak of 9.67% in 2022. A slight decrease to 9.03% occurred in 2023, followed by a recovery to 9.63% in 2024. This fluctuation aligns with the changes in net income and total assets, reflecting generally enhanced efficiency in asset utilization for generating income.

Adjusted net income shows more variability, rising from US$6,210 million in 2020 to US$8,588 million in 2021, then declining to US$7,522 million by 2024. This suggests that adjustments made to net income may reveal underlying volatility or the impact of non-recurring items influencing reported earnings.

Adjusted total assets follow a similar pattern to the unadjusted figure but at slightly lower absolute values, starting at US$88,747 million in 2020, dipping marginally through 2022, then rising to US$96,196 million in 2023 before a small decline to US$95,461 million in 2024. This trajectory corroborates asset growth with adjustments considered.

Adjusted ROA peaked at 9.74% in 2021, declined thereafter to 7.88% in 2024. This decline indicates that, after adjustments, return on asset efficiency diminished over time, contrasting with the reported ROA trend. The divergence between reported and adjusted ROA highlights potential impacts of accounting adjustments on the assessment of asset profitability.

Profitability

Net income increased steadily, signaling ongoing growth in earnings.

Adjusted net income displayed more fluctuations, suggesting variability in underlying profitability.

Asset Base

Total assets remained relatively stable with a notable increase in 2023.

Adjusted total assets mirrored this trend at slightly lower absolute levels.

Efficiency (ROA)

Reported ROA improved overall, indicating enhanced asset utilization.

Adjusted ROA peaked early and declined toward the end of the period, suggesting reduced efficiency when adjustments are made.