Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
PepsiCo Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 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).
- Debt to Equity Ratio
- The debt to equity ratio exhibits a general declining trend from 3.13 in early 2021 to approximately 2.07 by late 2022, indicating a gradual reduction in reliance on debt relative to equity during this period. However, from late 2022 onward, the ratio fluctuates between 2.31 and 2.79, suggesting increased variability and a modest upward trend in leverage over equity in more recent quarters.
- Debt to Capital Ratio
- The debt to capital ratio shows a steady decrease from 0.76 in the first quarter of 2021 to a low of 0.67 around the third quarter of 2022. This decline points to a reduced proportion of debt in the company’s total capital structure during this timeframe. Subsequently, the ratio stabilizes near 0.70 with minor fluctuations, indicating a maintenance of capital structure balance in the most recent periods.
- Debt to Assets Ratio
- The debt to assets ratio follows a downward trend from 0.48 in early 2021 to approximately 0.42 by the third quarter of 2022, reflecting a decrease in debt relative to total assets. From this point, the ratio oscillates between 0.44 and 0.49, implying a slight increase and subsequent stabilization of debt levels against assets in later quarters.
- Financial Leverage Ratio
- Financial leverage decreases noticeably from 6.54 at the start of 2021 to around 4.98 by the third quarter of 2022, suggesting an improvement in the company’s use of equity relative to total assets. Thereafter, the ratio exhibits some volatility, rising to values around 5.50 to 5.72 in the latest quarters, indicating a partial reversal or adjustment in leverage intensity toward a higher level.
- Summary
- Overall, the analyzed ratios point to an initial phase of deleveraging and strengthening of equity positions through 2021 and mid-2022. Following this period, financial leverage and debt-related ratios show increased oscillation and a modest upward shift, reflecting a change toward greater or more variable debt utilization relative to equity, capital, and assets. This pattern may suggest strategic adjustments in the capital structure or responses to external financial conditions influencing borrowing and asset management policies.
Debt Ratios
Debt to Equity
PepsiCo Inc., debt to equity calculation (quarterly data)
| Sep 6, 2025 | Jun 14, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt obligations | 6,736) | 12,056) | 9,099) | 7,082) | 6,524) | 8,289) | 8,161) | 6,510) | 8,937) | 7,613) | 4,281) | 3,414) | 3,109) | 6,032) | 5,459) | 4,308) | 4,234) | 4,264) | 4,674) | ||||||
| Long-term debt obligations, excluding current maturities | 44,113) | 39,328) | 39,419) | 37,224) | 38,490) | 36,638) | 37,707) | 37,595) | 35,837) | 36,008) | 37,486) | 35,657) | 36,136) | 33,247) | 34,590) | 36,026) | 37,023) | 38,034) | 38,991) | ||||||
| Total debt | 50,849) | 51,384) | 48,518) | 44,306) | 45,014) | 44,927) | 45,868) | 44,105) | 44,774) | 43,621) | 41,767) | 39,071) | 39,245) | 39,279) | 40,049) | 40,334) | 41,257) | 42,298) | 43,665) | ||||||
| Total PepsiCo common shareholders’ equity | 19,388) | 18,418) | 18,389) | 18,041) | 19,453) | 19,446) | 19,047) | 18,503) | 18,806) | 17,685) | 17,042) | 17,149) | 18,977) | 18,553) | 18,202) | 16,043) | 15,872) | 15,299) | 13,947) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 2.62 | 2.79 | 2.64 | 2.46 | 2.31 | 2.31 | 2.41 | 2.38 | 2.38 | 2.47 | 2.45 | 2.28 | 2.07 | 2.12 | 2.20 | 2.51 | 2.60 | 2.76 | 3.13 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 1.52 | 1.73 | 1.87 | 1.79 | 1.74 | 1.69 | 1.61 | 1.62 | 1.53 | 1.60 | 1.68 | 1.62 | 1.74 | 1.82 | 1.68 | 1.86 | 1.88 | 1.89 | 2.21 | ||||||
| Mondelēz International Inc. | 0.81 | 0.80 | 0.76 | 0.66 | 0.71 | 0.71 | 0.67 | 0.69 | 0.70 | 0.74 | 0.79 | 0.85 | 0.81 | 0.70 | 0.70 | 0.69 | 0.72 | 0.69 | 0.72 | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 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).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Total PepsiCo common shareholders’ equity
= 50,849 ÷ 19,388 = 2.62
2 Click competitor name to see calculations.
The analysis of the financial data over the reported periods reveals significant fluctuations and trends in the company's leverage and equity position.
- Total debt
- The total debt exhibited a general downward trend from March 2021 through December 2022, decreasing from approximately $43.7 billion to $39.1 billion. However, starting from March 2023, the total debt increased notably, reaching a peak of around $51.4 billion by June 2025, before a slight decrease to approximately $50.8 billion in September 2025. This pattern indicates a phase of debt reduction followed by a considerable accumulation of liabilities in recent quarters.
- Total common shareholders’ equity
- Shareholders’ equity increased consistently from March 2021, rising from about $13.9 billion to a high of approximately $19.4 billion by September 2024. Notably, there was a decline during December 2024 to June 2025, where equity fell to roughly $18.0 billion, before a modest recovery to about $19.4 billion by September 2025. Overall, the equity growth was positive, showing increased capital value for shareholders across most periods.
- Debt to equity ratio
- The debt to equity ratio decreased steadily from 3.13 in March 2021 to a low of 2.07 in September 2022, reflecting an improving balance between debt and equity, primarily due to decreasing debt and growing equity. From December 2022 onward, the ratio reversed its trend and increased to 2.79 by June 2025, indicating a rise in leverage and increased relative debt burden compared to equity. This was followed by a slight reduction to 2.62 in September 2025. The ratio's movement thus reflects initial deleveraging efforts followed by renewed borrowing or increased debt levels relative to equity.
In summary, the data indicates an initial period of deleveraging with reduced debt and increased equity, improving financial stability. However, from early 2023 onward, the company has increased its debt substantially relative to equity, raising leverage and potential financial risk. The shareholder equity values remain relatively strong with some recent volatility. Continuous monitoring of leverage ratios is advisable given this shift toward higher debt levels in recent quarters.
Debt to Capital
PepsiCo Inc., debt to capital calculation (quarterly data)
| Sep 6, 2025 | Jun 14, 2025 | Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 25, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt obligations | 6,736) | 12,056) | 9,099) | 7,082) | 6,524) | 8,289) | 8,161) | 6,510) | 8,937) | 7,613) | 4,281) | 3,414) | 3,109) | 6,032) | 5,459) | 4,308) | 4,234) | 4,264) | 4,674) | ||||||
| Long-term debt obligations, excluding current maturities | 44,113) | 39,328) | 39,419) | 37,224) | 38,490) | 36,638) | 37,707) | 37,595) | 35,837) | 36,008) | 37,486) | 35,657) | 36,136) | 33,247) | 34,590) | 36,026) | 37,023) | 38,034) | 38,991) | ||||||
| Total debt | 50,849) | 51,384) | 48,518) | 44,306) | 45,014) | 44,927) | 45,868) | 44,105) | 44,774) | 43,621) | 41,767) | 39,071) | 39,245) | 39,279) | 40,049) | 40,334) | 41,257) | 42,298) | 43,665) | ||||||
| Total PepsiCo common shareholders’ equity | 19,388) | 18,418) | 18,389) | 18,041) | 19,453) | 19,446) | 19,047) | 18,503) | 18,806) | 17,685) | 17,042) | 17,149) | 18,977) | 18,553) | 18,202) | 16,043) | 15,872) | 15,299) | 13,947) | ||||||
| Total capital | 70,237) | 69,802) | 66,907) | 62,347) | 64,467) | 64,373) | 64,915) | 62,608) | 63,580) | 61,306) | 58,809) | 56,220) | 58,222) | 57,832) | 58,251) | 56,377) | 57,129) | 57,597) | 57,612) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.72 | 0.74 | 0.73 | 0.71 | 0.70 | 0.70 | 0.71 | 0.70 | 0.70 | 0.71 | 0.71 | 0.69 | 0.67 | 0.68 | 0.69 | 0.72 | 0.72 | 0.73 | 0.76 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 0.60 | 0.63 | 0.65 | 0.64 | 0.64 | 0.63 | 0.62 | 0.62 | 0.60 | 0.62 | 0.63 | 0.62 | 0.63 | 0.65 | 0.63 | 0.65 | 0.65 | 0.65 | 0.69 | ||||||
| Mondelēz International Inc. | 0.45 | 0.44 | 0.43 | 0.40 | 0.42 | 0.42 | 0.40 | 0.41 | 0.41 | 0.43 | 0.44 | 0.46 | 0.45 | 0.41 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | ||||||
| Philip Morris International Inc. | 1.28 | 1.30 | 1.28 | 1.35 | 1.25 | 1.25 | 1.26 | 1.31 | 1.25 | 1.25 | 1.23 | 1.26 | 1.51 | 1.48 | 1.52 | 1.57 | 1.57 | 1.62 | 1.65 | ||||||
Based on: 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 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).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 50,849 ÷ 70,237 = 0.72
2 Click competitor name to see calculations.
The analysis of the data reveals notable trends in the financial leverage of the company over the examined periods. Total debt exhibited a gradual decline from the beginning of the timeline until late 2022, decreasing from approximately $43.7 billion to around $39.1 billion. However, starting from early 2023, total debt began to rise consistently, reaching a peak near $51.4 billion by mid-2025 before experiencing a slight decrease toward the end of the period.
Total capital showed less volatility in comparison, with fluctuations occurring within a relatively narrower range. Initially, total capital hovered near $57.6 billion, experienced minor decreases and increases throughout the early periods, and subsequently increased steadily from early 2023 onward. By mid-2025, total capital approached approximately $70.2 billion, indicating incremental growth over the full span.
The debt to capital ratio, reflecting the proportion of debt within the company's capital structure, followed a distinct pattern aligned with the movements of total debt and capital. This ratio decreased from 0.76 to a low of 0.67 by late 2022, suggesting a reduction in leverage during that timeframe. Subsequently, from early 2023, the ratio trended upward, stabilizing around the 0.70 to 0.74 range and peaking at 0.74 in mid-2025 before exhibiting a slight decline. This indicates a tendency toward increased leverage in the latter periods, although remaining below the highest initial level.
Overall, the company demonstrated a period of deleveraging through 2022, followed by a strategic increase in leverage through 2023 to 2025. The increase in total capital alongside rising debt levels suggests active management of the capital structure, possibly to support growth or investment initiatives during the later period. The debt to capital ratio's relative stability within the 0.67 to 0.74 range indicates moderate leverage without extreme volatility.
- Total Debt
- Decreased from $43.7 billion (Mar 2021) to $39.1 billion (Dec 2022), then increased to $51.4 billion (Jun 2025), followed by a slight reduction.
- Total Capital
- Fluctuated modestly near $57.6 billion initially, then increased steadily to approximately $70.2 billion by mid-2025.
- Debt to Capital Ratio
- Declined from 0.76 to 0.67 by late 2022, then rose back to around 0.74 by mid-2025, showing an overall oscillation that indicates changes in financial leverage strategy.
Debt to Assets
PepsiCo Inc., debt to assets calculation (quarterly data)
| Sep 6, 2025 | Jun 14, 2025 | Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 25, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt obligations | 6,736) | 12,056) | 9,099) | 7,082) | 6,524) | 8,289) | 8,161) | 6,510) | 8,937) | 7,613) | 4,281) | 3,414) | 3,109) | 6,032) | 5,459) | 4,308) | 4,234) | 4,264) | 4,674) | ||||||
| Long-term debt obligations, excluding current maturities | 44,113) | 39,328) | 39,419) | 37,224) | 38,490) | 36,638) | 37,707) | 37,595) | 35,837) | 36,008) | 37,486) | 35,657) | 36,136) | 33,247) | 34,590) | 36,026) | 37,023) | 38,034) | 38,991) | ||||||
| Total debt | 50,849) | 51,384) | 48,518) | 44,306) | 45,014) | 44,927) | 45,868) | 44,105) | 44,774) | 43,621) | 41,767) | 39,071) | 39,245) | 39,279) | 40,049) | 40,334) | 41,257) | 42,298) | 43,665) | ||||||
| Total assets | 106,558) | 105,345) | 101,737) | 99,467) | 100,513) | 99,533) | 100,040) | 100,495) | 99,953) | 95,906) | 93,042) | 92,187) | 94,461) | 93,103) | 92,962) | 92,377) | 93,254) | 92,385) | 91,224) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.48 | 0.49 | 0.48 | 0.45 | 0.45 | 0.45 | 0.46 | 0.44 | 0.45 | 0.45 | 0.45 | 0.42 | 0.42 | 0.42 | 0.43 | 0.44 | 0.44 | 0.46 | 0.48 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 0.45 | 0.47 | 0.48 | 0.44 | 0.44 | 0.43 | 0.43 | 0.43 | 0.41 | 0.42 | 0.44 | 0.42 | 0.43 | 0.45 | 0.44 | 0.45 | 0.46 | 0.47 | 0.50 | ||||||
| Mondelēz International Inc. | 0.30 | 0.29 | 0.28 | 0.26 | 0.27 | 0.27 | 0.25 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.32 | 0.29 | 0.29 | 0.29 | 0.30 | 0.29 | 0.29 | ||||||
| Philip Morris International Inc. | 0.75 | 0.75 | 0.76 | 0.74 | 0.74 | 0.75 | 0.77 | 0.73 | 0.76 | 0.77 | 0.76 | 0.70 | 0.67 | 0.68 | 0.70 | 0.67 | 0.70 | 0.72 | 0.74 | ||||||
Based on: 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 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).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 50,849 ÷ 106,558 = 0.48
2 Click competitor name to see calculations.
The financial data over the observed periods indicate several noteworthy trends concerning debt management and asset growth. The total debt exhibits an overall fluctuating pattern with an initial downward trend from approximately 43,665 million USD to a low near 39,071 million USD. However, from early 2023 onward, total debt increases notably, peaking near 51,384 million USD before slightly declining towards the latest period.
Total assets demonstrate a steady upward trajectory across the periods. Starting around 91,224 million USD, asset values generally rise with some minor fluctuations, reaching approximately 106,558 million USD by the final reported quarter. This reflects consistent asset expansion despite variations in total debt levels.
- Debt to Assets Ratio
- The ratio of total debt to total assets begins at a relatively high level of 0.48 and shows a gradual decline during the initial periods, reaching lows near 0.42. This signifies an improvement in the balance between liabilities and assets, implying better solvency or a reduction in leverage. Nevertheless, from early 2023, there is a visible increase in the debt to assets ratio, climbing back to approximately 0.49 before adjusting slightly downward. This trend indicates renewed leverage or an increased reliance on debt financing relative to asset base.
- Overall Analysis
- The early decrease in both total debt and debt to assets ratio suggests deliberate efforts to deleverage or optimize the capital structure. The concurrent growth in assets supports a strengthening asset base which could enhance financial stability. Conversely, the later periods show increased debt coinciding with a rise in the leverage ratio, which may reflect strategic borrowing, capital expenditures, or other financial decisions impacting risk exposure.
- Implications
- The shifting patterns of debt and asset metrics highlight dynamic financial management. Increased leverage in recent quarters warrants attention regarding debt servicing capabilities and potential impacts on financial flexibility. The expansion of assets remains a positive sign, yet the balance between debt and assets should be monitored to ensure ongoing fiscal health.
Financial Leverage
PepsiCo Inc., financial leverage calculation (quarterly data)
| Sep 6, 2025 | Jun 14, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 106,558) | 105,345) | 101,737) | 99,467) | 100,513) | 99,533) | 100,040) | 100,495) | 99,953) | 95,906) | 93,042) | 92,187) | 94,461) | 93,103) | 92,962) | 92,377) | 93,254) | 92,385) | 91,224) | ||||||
| Total PepsiCo common shareholders’ equity | 19,388) | 18,418) | 18,389) | 18,041) | 19,453) | 19,446) | 19,047) | 18,503) | 18,806) | 17,685) | 17,042) | 17,149) | 18,977) | 18,553) | 18,202) | 16,043) | 15,872) | 15,299) | 13,947) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 5.50 | 5.72 | 5.53 | 5.51 | 5.17 | 5.12 | 5.25 | 5.43 | 5.31 | 5.42 | 5.46 | 5.38 | 4.98 | 5.02 | 5.11 | 5.76 | 5.88 | 6.04 | 6.54 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 3.39 | 3.65 | 3.88 | 4.05 | 4.01 | 3.91 | 3.76 | 3.77 | 3.71 | 3.78 | 3.86 | 3.85 | 4.05 | 4.05 | 3.79 | 4.10 | 4.09 | 4.05 | 4.42 | ||||||
| Mondelēz International Inc. | 2.73 | 2.71 | 2.67 | 2.54 | 2.59 | 2.64 | 2.73 | 2.52 | 2.48 | 2.51 | 2.58 | 2.65 | 2.55 | 2.40 | 2.41 | 2.37 | 2.43 | 2.41 | 2.45 | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 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).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Total PepsiCo common shareholders’ equity
= 106,558 ÷ 19,388 = 5.50
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends in the financial position over the observed periods.
- Total Assets
- Total assets showed a general upward trend over the periods examined. Beginning at approximately 91,224 million US dollars, total assets increased steadily, reaching over 106,000 million US dollars by the latest quarter. Though there were some fluctuations, such as a slight decline around the end of 2022, the overall trajectory was positive, indicating consistent growth in asset base across the timeframe.
- Total Common Shareholders’ Equity
- Common shareholders’ equity also exhibited growth but with more variability compared to total assets. Starting at around 13,947 million US dollars, equity rose substantially through early 2022, peaking near 19,453 million US dollars. Thereafter, a notable decline occurred toward late 2024 and early 2025, followed by a mild recovery by the latest quarter recorded. This pattern suggests periods of equity build-up interspersed with some reductions, potentially due to dividend payments, share repurchases, or losses.
- Financial Leverage
- Financial leverage, measured as a ratio, declined from a high of 6.54 early in the first period to about 4.98 by the third quarter of 2022, reflecting a reduction in the relative proportion of debt financing compared to equity. However, after this period, leverage increased again, consistently hovering between approximately 5.1 and 5.7, with the latest value around 5.5. This indicates a partial reversal of the deleveraging trend and suggests a somewhat higher reliance on debt relative to equity in the more recent quarters.
Overall, the company’s asset base expanded steadily while equity growth showed some fluctuations, leading to variable financial leverage levels. The initial substantial improvement in leverage metrics was followed by a moderate increase, implying changing strategies or market conditions affecting capital structure decisions. These shifts in leverage combined with equity fluctuations highlight important considerations regarding financial risk and capital management over the reported periods.