Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
PepsiCo Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-05), 10-Q (reporting date: 2020-06-13), 10-Q (reporting date: 2020-03-21).
- Current Ratio
- The current ratio demonstrates a general declining trend from 1.1 in March 2020 to fluctuating levels around 0.8-0.9 in subsequent years. Peaks and troughs are observed periodically, with a notable dip to 0.8 at the end of 2022 and a modest recovery toward 0.89 by early 2024 before declining slightly again. This overall downward trend suggests a gradual decrease in the company’s short-term liquidity over the analyzed period.
- Quick Ratio
- The quick ratio follows a similar downward trajectory, starting at 0.89 in March 2020 and fluctuating mostly below 0.7 in the later periods. The ratio reaches its lowest point around 0.56 late in 2021, followed by minor recoveries and declines, maintaining values between 0.6 and 0.68 during 2023 and early 2024. These figures indicate a reduction in the most liquid assets relative to current liabilities, implying tighter liquidity conditions excluding inventory.
- Cash Ratio
- The cash ratio exhibits a pronounced decline from 0.51 in early 2020 to levels oscillating between 0.2 and 0.3 thereafter. The ratio reaches its lowest points at 0.2 towards the end of 2022 and remains relatively low through 2023, with a slight increase to approximately 0.31 in early 2023 and moderate fluctuations afterward. This trend highlights a diminishing proportion of cash and cash equivalents available to cover short-term liabilities, signaling a more constrained immediate liquidity position.
Current Ratio
PepsiCo Inc., current ratio calculation (quarterly data)
| Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 25, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | Dec 26, 2020 | Sep 5, 2020 | Jun 13, 2020 | Mar 21, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 26,288) | 25,826) | 26,852) | 25,703) | 26,005) | 26,950) | 28,649) | 24,954) | 22,427) | 21,539) | 23,543) | 22,633) | 22,342) | 21,783) | 23,710) | 21,597) | 21,196) | 23,001) | 24,060) | 23,189) | 24,268) | |||||||
| Current liabilities | 31,511) | 31,536) | 30,315) | 31,148) | 30,234) | 31,647) | 32,660) | 29,618) | 25,837) | 26,785) | 25,653) | 27,223) | 25,824) | 26,220) | 25,077) | 23,623) | 22,693) | 23,372) | 26,009) | 23,827) | 22,078) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 0.83 | 0.82 | 0.89 | 0.83 | 0.86 | 0.85 | 0.88 | 0.84 | 0.87 | 0.80 | 0.92 | 0.83 | 0.87 | 0.83 | 0.95 | 0.91 | 0.93 | 0.98 | 0.93 | 0.97 | 1.10 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 1.10 | 1.03 | 1.06 | 1.08 | 1.04 | 1.13 | 1.14 | 1.14 | 1.15 | 1.15 | 1.13 | 1.13 | 1.18 | 1.13 | 1.52 | 1.47 | 1.33 | 1.32 | 1.13 | 1.09 | 0.87 | |||||||
| Mondelēz International Inc. | 0.61 | 0.68 | 0.63 | 0.68 | 0.77 | 0.62 | 0.61 | 0.65 | 0.68 | 0.60 | 0.69 | 0.68 | 0.68 | 0.74 | 0.73 | 0.61 | 0.61 | 0.66 | 0.74 | 0.55 | 0.53 | |||||||
| Philip Morris International Inc. | 0.79 | 0.88 | 0.89 | 0.94 | 0.94 | 0.75 | 0.89 | 0.85 | 0.85 | 0.72 | 0.92 | 0.89 | 0.92 | 0.92 | 1.00 | 1.18 | 1.18 | 1.10 | 1.12 | 1.13 | 1.02 | |||||||
Based on: 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-05), 10-Q (reporting date: 2020-06-13), 10-Q (reporting date: 2020-03-21).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 26,288 ÷ 31,511 = 0.83
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in working capital management and liquidity over the observed periods.
- Current Assets
- Current assets exhibit fluctuations with periods of growth and decline. Initially, current assets decreased from $24,268 million in March 2020 to $21,196 million in March 2021, indicating some contraction in liquid resources. However, from mid-2021 onwards, there is a noticeable upward trend, peaking at $28,649 million in September 2023. Despite this peak, subsequent periods show a modest decline, stabilizing around $26,000 million toward early 2025. This suggests an overall improving but somewhat volatile asset base.
- Current Liabilities
- Current liabilities show a general increasing trend over the full timeline. Starting at $22,078 million in March 2020, liabilities rise steadily, reaching the highest value of $32,660 million in September 2023. Although there is some decrease following this peak, liabilities remain elevated, in the range of $31,000 million towards early 2025. This growing liability level reflects an increased short-term obligation or greater use of short-term financing.
- Current Ratio
- The current ratio, which measures liquidity by comparing current assets to current liabilities, remains below 1.0 throughout almost all periods, indicating that current liabilities consistently exceed current assets. Starting at 1.1 in March 2020, the ratio quickly drops below 1.0 by mid-2020 and mostly fluctuates between 0.8 and 0.9 thereafter. The lowest ratios occur near the end of 2022 and into 2024, with values around 0.82 to 0.83. This persistent sub-1 ratio points to tight liquidity and potential challenges in covering short-term liabilities solely with current assets.
In summary, the data presents a scenario where current liabilities have generally grown faster than current assets, resulting in a current ratio consistently below the threshold typically considered safe for liquidity. Despite some recovery in current assets in mid to late 2023, the current ratio remains under pressure, which might warrant closer management focus on working capital efficiency and liquidity risk mitigation strategies.
Quick Ratio
PepsiCo Inc., quick ratio calculation (quarterly data)
| Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 25, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | Dec 26, 2020 | Sep 5, 2020 | Jun 13, 2020 | Mar 21, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 8,268) | 8,505) | 7,308) | 6,353) | 8,047) | 9,711) | 10,017) | 6,116) | 4,770) | 4,954) | 6,415) | 5,405) | 6,561) | 5,596) | 6,506) | 5,449) | 5,661) | 8,185) | 9,094) | 8,927) | 11,089) | |||||||
| Short-term investments | 314) | 761) | 743) | 315) | 303) | 292) | 266) | 338) | 434) | 394) | 327) | 287) | 343) | 392) | 344) | 328) | 964) | 1,366) | 611) | 196) | 158) | |||||||
| Accounts and notes receivable, less allowance | 10,800) | 10,333) | 12,088) | 11,942) | 10,938) | 10,815) | 11,782) | 11,456) | 10,469) | 10,163) | 10,739) | 10,498) | 9,424) | 8,680) | 9,545) | 9,722) | 8,885) | 8,404) | 9,295) | 8,780) | 8,477) | |||||||
| Total quick assets | 19,382) | 19,599) | 20,139) | 18,610) | 19,288) | 20,818) | 22,065) | 17,910) | 15,673) | 15,511) | 17,481) | 16,190) | 16,328) | 14,668) | 16,395) | 15,499) | 15,510) | 17,955) | 19,000) | 17,903) | 19,724) | |||||||
| Current liabilities | 31,511) | 31,536) | 30,315) | 31,148) | 30,234) | 31,647) | 32,660) | 29,618) | 25,837) | 26,785) | 25,653) | 27,223) | 25,824) | 26,220) | 25,077) | 23,623) | 22,693) | 23,372) | 26,009) | 23,827) | 22,078) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 0.62 | 0.62 | 0.66 | 0.60 | 0.64 | 0.66 | 0.68 | 0.60 | 0.61 | 0.58 | 0.68 | 0.59 | 0.63 | 0.56 | 0.65 | 0.66 | 0.68 | 0.77 | 0.73 | 0.75 | 0.89 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 0.75 | 0.72 | 0.78 | 0.80 | 0.75 | 0.72 | 0.78 | 0.82 | 0.81 | 0.77 | 0.80 | 0.78 | 0.80 | 0.81 | 1.17 | 1.12 | 0.99 | 0.96 | 0.93 | 0.88 | 0.68 | |||||||
| Mondelēz International Inc. | 0.28 | 0.27 | 0.25 | 0.20 | 0.21 | 0.29 | 0.27 | 0.25 | 0.29 | 0.30 | 0.35 | 0.32 | 0.35 | 0.42 | 0.43 | 0.30 | 0.32 | 0.39 | 0.41 | 0.25 | 0.27 | |||||||
| Philip Morris International Inc. | 0.36 | 0.39 | 0.40 | 0.44 | 0.41 | 0.28 | 0.36 | 0.37 | 0.31 | 0.29 | 0.48 | 0.47 | 0.44 | 0.44 | 0.49 | 0.59 | 0.53 | 0.56 | 0.55 | 0.52 | 0.43 | |||||||
Based on: 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-05), 10-Q (reporting date: 2020-06-13), 10-Q (reporting date: 2020-03-21).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 19,382 ÷ 31,511 = 0.62
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibit notable fluctuations over the observed quarters. Starting from a high level of $19,724 million in March 2020, the value generally declines through late 2020 and early 2021, reaching a low point around $15,510 million in March 2021. Following this trough, there is a gradual recovery and increment with some volatility, peaking significantly at $22,065 million in September 2023. However, the value slightly decreases again afterward, ending near $19,382 million in March 2025. This pattern suggests periods of contraction followed by recovery and modest stability towards the end of the timeline.
- Current Liabilities
- Current liabilities show a generally increasing trend throughout the timeline. Starting at $22,078 million in March 2020, the liabilities rise with some volatility, reaching over $31,000 million after mid-2023. The growth reflects a sustained increase in near-term obligations, with occasional fluctuations but no substantial declines. This indicates a growing short-term financial commitment over the reported periods.
- Quick Ratio
- The quick ratio demonstrates a declining trend overall, starting at 0.89 in March 2020 and dropping below 0.7 by early 2021. It continues to fluctuate below 0.7 with a decline to as low as 0.56 in December 2021, indicating a weakening ability to cover current liabilities with liquid assets. Though minor recoveries appear intermittently, it remains below the initial levels, ending around 0.62 in March 2025. This trend points to a relative decrease in short-term liquidity and financial flexibility over the observed period.
- Combined Insights
- The data suggest that while total quick assets have experienced some recovery and volatility, they have not consistently kept pace with the steady increase in current liabilities. The declining quick ratio reinforces concerns about reduced liquidity relative to short-term obligations. This may imply increased financial pressure on the company's working capital management or a strategic shift in asset and liability structure that temporarily constrains liquidity ratios.
Cash Ratio
PepsiCo Inc., cash ratio calculation (quarterly data)
| Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 25, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | Dec 26, 2020 | Sep 5, 2020 | Jun 13, 2020 | Mar 21, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 8,268) | 8,505) | 7,308) | 6,353) | 8,047) | 9,711) | 10,017) | 6,116) | 4,770) | 4,954) | 6,415) | 5,405) | 6,561) | 5,596) | 6,506) | 5,449) | 5,661) | 8,185) | 9,094) | 8,927) | 11,089) | |||||||
| Short-term investments | 314) | 761) | 743) | 315) | 303) | 292) | 266) | 338) | 434) | 394) | 327) | 287) | 343) | 392) | 344) | 328) | 964) | 1,366) | 611) | 196) | 158) | |||||||
| Total cash assets | 8,582) | 9,266) | 8,051) | 6,668) | 8,350) | 10,003) | 10,283) | 6,454) | 5,204) | 5,348) | 6,742) | 5,692) | 6,904) | 5,988) | 6,850) | 5,777) | 6,625) | 9,551) | 9,705) | 9,123) | 11,247) | |||||||
| Current liabilities | 31,511) | 31,536) | 30,315) | 31,148) | 30,234) | 31,647) | 32,660) | 29,618) | 25,837) | 26,785) | 25,653) | 27,223) | 25,824) | 26,220) | 25,077) | 23,623) | 22,693) | 23,372) | 26,009) | 23,827) | 22,078) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.27 | 0.29 | 0.27 | 0.21 | 0.28 | 0.32 | 0.31 | 0.22 | 0.20 | 0.20 | 0.26 | 0.21 | 0.27 | 0.23 | 0.27 | 0.24 | 0.29 | 0.41 | 0.37 | 0.38 | 0.51 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 0.58 | 0.58 | 0.64 | 0.65 | 0.60 | 0.58 | 0.63 | 0.65 | 0.61 | 0.59 | 0.62 | 0.57 | 0.55 | 0.63 | 0.93 | 0.85 | 0.76 | 0.75 | 0.79 | 0.74 | 0.55 | |||||||
| Mondelēz International Inc. | 0.07 | 0.07 | 0.07 | 0.06 | 0.05 | 0.10 | 0.09 | 0.08 | 0.10 | 0.11 | 0.15 | 0.14 | 0.14 | 0.25 | 0.24 | 0.14 | 0.14 | 0.24 | 0.22 | 0.11 | 0.11 | |||||||
| Philip Morris International Inc. | 0.16 | 0.18 | 0.18 | 0.21 | 0.18 | 0.12 | 0.14 | 0.15 | 0.11 | 0.12 | 0.26 | 0.25 | 0.23 | 0.23 | 0.25 | 0.31 | 0.26 | 0.37 | 0.31 | 0.27 | 0.23 | |||||||
Based on: 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20), 10-K (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-05), 10-Q (reporting date: 2020-06-13), 10-Q (reporting date: 2020-03-21).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,582 ÷ 31,511 = 0.27
2 Click competitor name to see calculations.
The financial data indicates that total cash assets have experienced notable fluctuations over the periods analyzed. Initially, total cash assets were relatively high, peaking at 11,247 million USD in March 2020, followed by a decline to 5,204 million USD by March 2023. Subsequently, there was a recovery phase where total cash assets rose sharply to 10,283 million USD in September 2023 before gradually moderating to 8,582 million USD by March 2025.
Current liabilities have shown a general upward trend throughout the timeline. Starting at 22,078 million USD in March 2020, current liabilities generally increased with some periods of accelerated growth, reaching a peak of 32,660 million USD in September 2023. Following this peak, current liabilities remained elevated, fluctuating slightly around the mid-30,000 million USD range through to March 2025.
The cash ratio reveals a consistently low liquidity position relative to current liabilities over the entire period. The ratio began at 0.51 in March 2020, indicating 51 cents of cash per dollar of current liabilities, but quickly declined to below 0.30 from March 2021 onward for most periods. The lowest points were around 0.20 in early 2023, suggesting limited immediate liquidity. There was a noticeable improvement in the ratio during the end of 2023, reaching up to 0.32, but thereafter it declined again to fluctuate around 0.27 by early 2025.
Overall, the data suggests that while cash reserves dipped significantly in early periods, there was an attempt to rebuild liquidity towards late 2023. However, the sustained rise in current liabilities has kept liquidity measures constrained, with the cash ratio consistently below 0.5 for most of the period. This pattern indicates a potential strain on short-term financial flexibility, emphasizing the need for close monitoring of working capital management and possibly alternative liquidity sources.