Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
PepsiCo Inc., long-term (investment) activity 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).
The analysis of the quarterly financial ratios over the observed periods reveals several notable trends in asset and equity utilization efficiencies.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates an overall upward trend beginning in March 2020, rising from approximately 3.29 to peak near 3.69 by the end of 2023. This suggests an increasing efficiency in utilizing fixed assets to generate sales during this timeframe. However, the ratio subsequently shows a declining pattern through 2024 and into early 2025, decreasing to about 3.24. This decline may indicate reduced efficiency or increased investment in fixed assets without corresponding sales growth in the most recent quarters.
- Total Asset Turnover
- The total asset turnover ratio exhibits a consistent improvement starting from a lower base of 0.76 around late 2020, rising steadily to reach approximately 0.95 by early 2023. This indicates better overall utilization of total assets in revenue generation during this period. The ratio then stabilizes, fluctuating slightly between 0.90 and 0.92 for the subsequent quarters up to early 2025, reflecting maintained asset use efficiency without significant gains or losses.
- Equity Turnover
- The equity turnover ratio shows greater volatility compared to the other ratios. From its initial high point of around 5.23 in early 2020, it experiences a downward trend through 2021, dipping to approximately 4.41 by the end of that year. The ratio recovers somewhat in 2022, rising to about 5.17, before declining again and fluctuating within the range of roughly 4.7 to 5.1 up to early 2025. These fluctuations suggest varying efficiency in generating revenue from shareholders' equity, potentially influenced by changes in equity base or operational performance.
In summary, the company initially improved its efficiency in utilizing fixed assets and total assets over the analyzed period, though recent quarters indicate some challenges in sustaining growth in fixed asset turnover. Total asset turnover shows more stable improvement followed by steady performance. Equity turnover remains more variable, implying changes in the balance between equity employed and sales output over time.
Net Fixed Asset Turnover
PepsiCo Inc., net fixed asset turnover 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) | ||||||||||||||||||||||||||||
| Net revenue | 17,919) | 27,784) | 23,319) | 22,501) | 18,250) | 27,850) | 23,453) | 22,322) | 17,846) | 27,996) | 21,971) | 20,225) | 16,200) | 25,248) | 20,189) | 19,217) | 14,820) | 22,455) | 18,091) | 15,945) | 13,881) | |||||||
| Property, plant and equipment, net | 28,213) | 28,008) | 27,188) | 27,042) | 26,792) | 27,039) | 24,853) | 24,500) | 24,228) | 24,291) | 22,800) | 22,694) | 22,017) | 22,407) | 21,257) | 21,619) | 21,249) | 21,369) | 19,726) | 19,187) | 18,980) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 3.24 | 3.28 | 3.38 | 3.40 | 3.43 | 3.38 | 3.69 | 3.68 | 3.63 | 3.56 | 3.67 | 3.61 | 3.67 | 3.55 | 3.61 | 3.45 | 3.36 | 3.29 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 4.50 | 4.57 | 4.70 | 4.89 | 4.95 | 4.95 | 5.08 | 4.55 | 4.42 | 4.37 | 4.58 | 4.37 | 4.10 | 3.90 | 3.76 | 3.45 | 3.13 | 3.06 | — | — | — | |||||||
| Mondelēz International Inc. | 3.73 | 3.84 | 3.73 | 3.79 | 3.77 | 3.72 | 3.87 | 3.67 | 3.60 | 3.49 | 3.53 | 3.41 | 3.24 | 3.32 | 3.27 | 3.14 | 3.09 | 2.94 | — | — | — | |||||||
| Philip Morris International Inc. | 5.10 | 5.18 | 4.93 | 5.02 | 4.99 | 4.68 | 4.98 | 4.74 | 4.72 | 4.73 | 5.65 | 5.33 | 5.26 | 5.09 | 5.07 | 5.03 | 4.89 | 4.51 | — | — | — | |||||||
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
Net fixed asset turnover
= (Net revenueQ1 2025
+ Net revenueQ4 2024
+ Net revenueQ3 2024
+ Net revenueQ2 2024)
÷ Property, plant and equipment, net
= (17,919 + 27,784 + 23,319 + 22,501)
÷ 28,213 = 3.24
2 Click competitor name to see calculations.
- Net Revenue Trends
- The net revenue exhibited a general upward trajectory from March 2020 through December 2023, increasing from $13,881 million to $27,850 million. This upward trend experienced consistent quarterly gains with minor fluctuations. However, starting from March 2024, net revenue displayed a modest decline, falling to $17,919 million by the last recorded period in March 2025. While the revenue growth from 2020 through 2023 suggests strong sales performance and market expansion, the slight decrease in 2024 and early 2025 indicates potential market pressures or cyclical factors affecting sales.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment steadily increased over the entire period. Starting at $18,980 million in March 2020, it rose consistently to reach $28,213 million by March 2025. This continuous investment in fixed assets indicates ongoing capital expenditures aimed at capacity expansion or modernization. The upward trend suggests a strategic focus on maintaining and enhancing production capabilities and infrastructure.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, available from December 2020 onwards, initially demonstrated a positive trend, rising from 3.29 to a peak of approximately 3.69 in December 2023. This increase indicates improved efficiency in generating revenue from fixed assets over time. However, from March 2024 forward, the ratio declined progressively to 3.24 by March 2025. This decline may point to reduced asset utilization effectiveness or a lag between asset investments and revenue realization.
- Comprehensive Insights
- The analyzed data shows a period of strong growth in net revenue accompanied by consistent capital investments in fixed assets up to late 2023. The initial rise in the net fixed asset turnover ratio during this period reflects efficient use of assets to drive revenue. However, the decline in both net revenue and asset turnover ratio in 2024 and early 2025 suggests emerging operational challenges or market headwinds impacting overall performance and asset productivity. The continuous increase in property, plant, and equipment values despite declining revenue efficiency highlights potential timing mismatches in capital deployment and revenue generation cycles.
Total Asset Turnover
PepsiCo Inc., total asset turnover 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) | ||||||||||||||||||||||||||||
| Net revenue | 17,919) | 27,784) | 23,319) | 22,501) | 18,250) | 27,850) | 23,453) | 22,322) | 17,846) | 27,996) | 21,971) | 20,225) | 16,200) | 25,248) | 20,189) | 19,217) | 14,820) | 22,455) | 18,091) | 15,945) | 13,881) | |||||||
| Total assets | 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) | 92,918) | 92,041) | 89,525) | 85,062) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | 0.90 | 0.92 | 0.91 | 0.92 | 0.92 | 0.91 | 0.92 | 0.94 | 0.95 | 0.94 | 0.89 | 0.88 | 0.87 | 0.86 | 0.82 | 0.81 | 0.78 | 0.76 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 0.46 | 0.47 | 0.44 | 0.46 | 0.46 | 0.47 | 0.46 | 0.45 | 0.45 | 0.46 | 0.46 | 0.44 | 0.43 | 0.41 | 0.42 | 0.40 | 0.37 | 0.38 | — | — | — | |||||||
| Mondelēz International Inc. | 0.53 | 0.53 | 0.50 | 0.49 | 0.47 | 0.50 | 0.50 | 0.47 | 0.45 | 0.44 | 0.45 | 0.45 | 0.43 | 0.43 | 0.42 | 0.42 | 0.41 | 0.39 | — | — | — | |||||||
| Philip Morris International Inc. | 0.59 | 0.61 | 0.56 | 0.55 | 0.55 | 0.54 | 0.54 | 0.54 | 0.52 | 0.51 | 0.78 | 0.78 | 0.76 | 0.76 | 0.74 | 0.74 | 0.73 | 0.64 | — | — | — | |||||||
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
Total asset turnover
= (Net revenueQ1 2025
+ Net revenueQ4 2024
+ Net revenueQ3 2024
+ Net revenueQ2 2024)
÷ Total assets
= (17,919 + 27,784 + 23,319 + 22,501)
÷ 101,737 = 0.90
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding net revenue, total assets, and total asset turnover ratios over the observed periods.
- Net Revenue
-
Net revenue exhibits a generally increasing trend interspersed with seasonal fluctuations corresponding to quarterly periods. Initial quarters in 2020 show a gradual increase from $13,881 million in March to $22,455 million in December. This upward trend is followed by a cyclical pattern through subsequent years where revenues tend to peak in the fourth quarter of each year, reaching values such as $25,248 million in December 2021 and $27,996 million in December 2022.
First quarter revenues typically dip relative to the preceding fourth quarter, as seen in multiple years, e.g., from $27,996 million in December 2022 down to $17,846 million in March 2023. Despite this, over the entirety of the dataset, there is a steady increase in net revenues observed from early 2020 to the projected figures in 2025. For example, the first quarter net revenue increased gradually from $13,881 million in March 2020 to $17,919 million in March 2025, indicating long-term growth potential despite short-term seasonal declines.
- Total Assets
-
Total assets have shown relative stability with slight upward trends over the period. Starting at $85,062 million in March 2020, the asset base gradually increased to around $100,000 million by late 2023 and early 2024. Some quarter-to-quarter fluctuations are present but are not pronounced. Notably, towards the end of the dataset, total assets hover close to the $100 billion mark, reflecting a stable or modestly expanding asset base.
This stability in asset magnitude suggests controlled asset management and limited volatility in the company's invested resources despite fluctuations in revenue.
- Total Asset Turnover Ratio
-
The total asset turnover ratio, available from September 2020 onwards, shows a clear trend of gradual improvement. Beginning at 0.76, the ratio steadily increases through subsequent quarters, peaking around 0.94 to 0.95 in early to mid-2023. This trajectory indicates improved efficiency in generating revenue from the asset base during this phase.
After reaching this peak, the turnover ratio maintains values in the low 0.9 range through late 2024 and into 2025, reflecting sustained operational efficiency. The trend suggests enhanced utilization of assets to drive revenue and a possibly more effective management of resources during this recent period.
In summary, the data indicates a consistent expansion in net revenue with expected seasonal variations, a stable to modestly increasing asset base, and improving asset efficiency as evidenced by the rising and stabilizing asset turnover ratio. The company appears to be managing growth while maintaining operational efficiency, particularly notable from 2020 through to the projections in 2025.
Equity Turnover
PepsiCo Inc., equity turnover calculation (quarterly data)
| Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 25, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | Dec 26, 2020 | Sep 5, 2020 | Jun 13, 2020 | Mar 21, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net revenue | 17,919) | 27,784) | 23,319) | 22,501) | 18,250) | 27,850) | 23,453) | 22,322) | 17,846) | 27,996) | 21,971) | 20,225) | 16,200) | 25,248) | 20,189) | 19,217) | 14,820) | 22,455) | 18,091) | 15,945) | 13,881) | |||||||
| Total PepsiCo common shareholders’ equity | 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) | 13,454) | 13,483) | 12,491) | 13,465) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | 4.98 | 5.09 | 4.73 | 4.73 | 4.82 | 4.94 | 4.87 | 5.10 | 5.17 | 5.04 | 4.41 | 4.41 | 4.44 | 4.95 | 4.83 | 4.88 | 5.11 | 5.23 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | 1.79 | 1.89 | 1.75 | 1.80 | 1.74 | 1.76 | 1.71 | 1.70 | 1.72 | 1.78 | 1.86 | 1.80 | 1.62 | 1.68 | 1.70 | 1.64 | 1.64 | 1.71 | — | — | — | |||||||
| Mondelēz International Inc. | 1.41 | 1.35 | 1.30 | 1.30 | 1.27 | 1.27 | 1.24 | 1.19 | 1.17 | 1.17 | 1.14 | 1.09 | 1.04 | 1.02 | 1.02 | 1.01 | 1.00 | 0.96 | — | — | — | |||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Equity turnover
= (Net revenueQ1 2025
+ Net revenueQ4 2024
+ Net revenueQ3 2024
+ Net revenueQ2 2024)
÷ Total PepsiCo common shareholders’ equity
= (17,919 + 27,784 + 23,319 + 22,501)
÷ 18,389 = 4.98
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends across the periods analyzed. Net revenue demonstrates a generally increasing pattern over time, with some fluctuations. After an initial rise from March 2020 to December 2020, revenues declined in the subsequent quarter of March 2021, followed by a steady upward trajectory reaching a peak in December 2023. However, slight decreases are observed in the latest periods, suggesting some variability in sales performance.
Total common shareholders’ equity exhibits a less pronounced but sustained growth trend throughout the periods. Starting at a moderate level in early 2020, equity fluctuates slightly but largely increases until peaking around late 2022 and early 2023. After this, a mild decline appears in the latest quarters, indicating potential changes in retained earnings or capital structure.
Equity turnover ratio data is available from late 2020 onward and shows a relatively stable but mildly declining trend overall. The ratio starts above 5.0, decreases gradually over time to values near 4.7, and fluctuates slightly around this level in recent periods. This pattern suggests a modest reduction in the efficiency of generating revenue from shareholders’ equity.
- Net Revenue
- Consistently increased from early 2020 through late 2023, peaking at nearly 28,000 million US dollars, followed by marginal declines in the most recent quarters.
- Total Shareholders’ Equity
- Displayed steady growth with minor oscillations, reaching its highest levels near late 2022–early 2023 before experiencing slight decreases in subsequent periods.
- Equity Turnover Ratio
- Exhibits a gradual downward trend from approximately 5.23 to around 4.7, indicating a small decline in revenue generation efficiency relative to equity.
Overall, the data suggests robust revenue growth alongside moderate expansion of equity, though the diminishing equity turnover ratio could imply some deterioration in capital utilization efficiency. The latest marginal decreases in net revenue and equity may warrant further examination to understand underlying causes.