Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Long-term Activity Ratios (Summary)
PepsiCo Inc., long-term (investment) activity ratios
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-27), 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).
An examination of long-term activity ratios reveals several noteworthy trends over the five-year period. Generally, a slight decline in asset utilization efficiency is apparent across most metrics, though the magnitude of change varies. The company demonstrates consistent revenue generation relative to its asset base, but the rate of generation appears to be modestly decreasing.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a consistent, albeit gradual, downward trend, decreasing from 3.55 in 2021 to 3.14 in 2025. This suggests a decreasing ability to generate sales revenue from its net fixed assets over time. The inclusion of operating lease right-of-use assets shows a similar pattern, declining from 3.25 to 2.79 over the same period, indicating a more pronounced decrease in efficiency when considering lease obligations.
- Total Asset Turnover
- The total asset turnover ratio initially increased from 0.86 in 2021 to 0.94 in 2022, before stabilizing around 0.91-0.92 for 2023 and 2024. A slight decrease to 0.87 is observed in 2025. This indicates a relatively stable, but slightly diminishing, ability to generate sales revenue from all assets. The initial increase in 2022 may be attributable to improved asset management or increased sales volume, but the subsequent leveling off and slight decline suggest a potential weakening in overall asset utilization.
- Equity Turnover
- The equity turnover ratio generally increased from 4.95 in 2021 to a peak of 5.09 in 2024, before decreasing to 4.60 in 2025. This suggests that the company was initially becoming more efficient in generating revenue from shareholder equity, but experienced a decline in efficiency in the most recent year. The decrease in 2025 could be due to a slower growth in revenue relative to equity, or an increase in equity without a corresponding increase in sales.
In summary, the observed trends suggest a gradual decrease in the efficiency with which assets and equity are utilized to generate revenue. While the changes are not dramatic, the consistent downward movement in several key ratios warrants further investigation to understand the underlying drivers and potential implications for future performance.
Net Fixed Asset Turnover
PepsiCo Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 Calculation
Net fixed asset turnover = Net revenue ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a consistent downward trend over the five-year period. While net revenue generally increased, the growth in property, plant, and equipment, net, outpaced revenue growth, resulting in declining efficiency in utilizing fixed assets to generate sales.
- Net Fixed Asset Turnover Trend
- The ratio decreased from 3.55 in 2021 to 3.14 in 2025. This represents a cumulative decline of approximately 11.5% over the observed timeframe.
Initially, the ratio remained relatively stable between 2021 and 2022, at 3.55 and 3.56 respectively, indicating a consistent level of fixed asset utilization. However, a noticeable decline began in 2023, with the ratio falling to 3.38. This downward momentum continued in subsequent years, reaching 3.28 in 2024 and further decreasing to 3.14 in 2025.
- Revenue and Fixed Asset Relationship
- Net revenue increased from US$79,474 million in 2021 to US$93,925 million in 2025, representing a total increase of approximately 18.2%.
- Over the same period, property, plant, and equipment, net, grew from US$22,407 million to US$29,905 million, a more substantial increase of roughly 33.5%.
- The proportionally larger increase in fixed assets compared to revenue suggests increased investment in productive capacity, but also indicates a diminishing return on those investments in terms of sales generated per dollar of fixed assets.
The observed trend warrants further investigation to determine the underlying causes. Potential factors could include overinvestment in fixed assets, inefficiencies in asset utilization, or a shift in business strategy that prioritizes long-term growth over short-term asset turnover. Continued monitoring of this ratio is recommended to assess the sustainability of this trend and its potential impact on overall profitability.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
PepsiCo Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenue ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
Analysis of the net fixed asset turnover ratio reveals a consistent downward trend over the five-year period. While net revenue has generally increased, the growth in net fixed assets has outpaced revenue growth, resulting in declining efficiency in utilizing fixed assets to generate sales.
- Net Revenue
- Net revenue experienced growth from US$79,474 million in 2021 to US$93,925 million in 2025. However, the rate of growth slowed in later years, with a more modest increase between 2023 and 2025 compared to the earlier period.
- Property, Plant and Equipment, Net (including operating lease, right-of-use asset)
- The value of net property, plant, and equipment, including operating leases and right-of-use assets, has steadily increased from US$24,427 million in 2021 to US$33,650 million in 2025. This represents a substantial cumulative increase, indicating significant investment in fixed assets.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio decreased from 3.25 in 2021 to 2.79 in 2025. This indicates that the company is generating less revenue for each dollar invested in fixed assets. The decline has been gradual but consistent, suggesting a potential need to evaluate the efficiency of asset utilization or the effectiveness of capital expenditure decisions. The ratio decreased by approximately 14.2% over the period.
The observed trend suggests that while the company continues to grow its revenue base, it is becoming less efficient in converting its fixed asset investments into sales. Further investigation may be warranted to understand the drivers behind the increasing fixed asset base and the reasons for the declining turnover ratio. This could include analyzing specific asset investments, evaluating production capacity, and assessing the impact of changing market conditions.
Total Asset Turnover
PepsiCo Inc., total asset turnover calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Total Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 Calculation
Total asset turnover = Net revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited fluctuations over the five-year period. Initially, an increasing trend was observed, followed by a period of relative stability and a subsequent slight decline.
- Total Asset Turnover Trend
- The ratio began at 0.86 in 2021, increasing to 0.94 in 2022. This suggests improved efficiency in utilizing assets to generate revenue during that timeframe. The ratio then decreased slightly to 0.91 in 2023 and remained relatively stable at 0.92 in 2024. Finally, a modest decrease to 0.87 was recorded in 2025.
The increase from 2021 to 2022 indicates that the company was generating more revenue per dollar of assets. The subsequent stabilization and slight decline suggest that while asset utilization remained generally consistent, there was a minor reduction in efficiency in the most recent year observed. This could be attributable to factors such as increased investment in assets without a corresponding immediate increase in revenue, or a slowdown in revenue growth.
- Relationship to Revenue
- Net revenue increased consistently throughout the period, from US$79,474 million in 2021 to US$93,925 million in 2025. However, the growth in revenue did not consistently translate into a higher asset turnover ratio, particularly evident in the later years. This suggests that asset growth outpaced revenue growth to some extent.
The observed fluctuations in the total asset turnover ratio warrant further investigation to determine the underlying drivers. A deeper analysis, considering industry benchmarks and the company’s specific investment strategies, would provide a more comprehensive understanding of these trends.
Equity Turnover
PepsiCo Inc., equity turnover calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Total PepsiCo common shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Equity Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 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).
1 2025 Calculation
Equity turnover = Net revenue ÷ Total PepsiCo common shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally stable pattern with minor fluctuations. Net revenue consistently increased year-over-year, while shareholders’ equity also generally increased, though with a slight decrease in 2024. These movements influence the equity turnover ratio, which reflects how efficiently the company generates revenue from shareholders’ investments.
- Overall Trend
- The equity turnover ratio remained relatively consistent between 2021 and 2024, fluctuating between 4.94 and 5.09. A slight decrease to 4.60 is observed in 2025.
- Year-over-Year Changes
- From 2021 to 2022, the equity turnover ratio increased from 4.95 to 5.04, indicating a slightly improved efficiency in revenue generation relative to equity. A minor decrease to 4.94 occurred between 2022 and 2023. The ratio then increased again in 2024 to 5.09, before declining to 4.60 in 2025. This 2025 decrease coincides with a proportionally larger increase in shareholders’ equity compared to the increase in net revenue.
- Revenue and Equity Relationship
- Net revenue exhibited consistent growth throughout the period, increasing from US$79,474 million in 2021 to US$93,925 million in 2025. Total shareholders’ equity also generally increased, moving from US$16,043 million in 2021 to US$20,406 million in 2025, with a slight dip to US$18,041 million in 2024. The consistent revenue growth, coupled with the generally increasing equity base, suggests a stable business model. The decrease in equity turnover in 2025 suggests that the company required a larger equity base to generate a similar level of revenue compared to previous years.
In summary, the equity turnover ratio indicates a stable, though slightly decreasing, efficiency in utilizing shareholders’ equity to generate revenue. The 2025 decline warrants further investigation to determine if it represents a temporary fluctuation or a shift in the company’s operational efficiency.