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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- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
PepsiCo Inc., long-term (investment) activity ratios
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| 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: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
The analysis of the annual financial data reveals several trends in asset and equity utilization over the examined periods.
- Net Fixed Asset Turnover
- This ratio shows a general increase from 3.29 in 2020 to a peak of 3.56 in 2022, indicating improved efficiency in generating sales from fixed assets during this period. However, a slight decline is observed thereafter, descending to 3.28 by the end of 2024, suggesting a modest reduction in asset utilization efficiency.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The trend for this measure mirrors the net fixed asset turnover, starting at 3.05 in 2020 with incremental growth to 3.25 in 2021. There is a plateau around 3.24 in 2022, followed by a gradual decline to 2.93 in 2024. This indicates somewhat lower efficiency when leased assets are included, with a decreasing trend noticeable in later years.
- Total Asset Turnover
- Total asset turnover improved steadily from 0.76 in 2020 to 0.94 in 2022, reflecting enhanced overall asset utilization to generate revenue. After peaking, it slightly declined to 0.91 in 2023 but rose marginally to 0.92 in 2024, indicating relative stability in the latest periods, though not reaching previous peak efficiency again.
- Equity Turnover
- Equity turnover starts at a high level of 5.23 in 2020, then declines to 4.95 in 2021, suggesting a decrease in sales generated per unit of shareholder equity. The ratio fluctuates moderately thereafter, reaching 5.09 in 2024. This indicates a recovery trend, but still maintains values slightly below the starting point, suggesting variability in the efficiency of equity utilization.
Net Fixed Asset Turnover
PepsiCo Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| 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: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Net fixed asset turnover = Net revenue ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue exhibits a consistent upward trend over the five-year period. Starting from US$70,372 million in 2020, revenue increased to US$79,474 million in 2021, followed by continued growth to US$86,392 million in 2022. The upward trajectory persisted through 2023 with US$91,471 million and slightly moderated in 2024 to US$91,854 million. Overall, this reflects a steady expansion in sales, with the rate of growth appearing to decelerate slightly in the final year.
- Property, Plant and Equipment, Net
- This asset category demonstrates consistent investment and expansion. The net value of property, plant, and equipment increased annually from US$21,369 million in 2020 to US$22,407 million in 2021, US$24,291 million in 2022, US$27,039 million in 2023, and US$28,008 million in 2024. The steady rise suggests ongoing capital expenditure and asset acquisition or enhancements over the period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures the efficiency in generating sales from fixed assets, shows some variability. It increased from 3.29 in 2020 to 3.55 in 2021 and remained stable at 3.56 in 2022. However, in 2023 it declined to 3.38 and further reduced to 3.28 in 2024. This pattern indicates that despite rising fixed assets, the efficiency in utilizing those assets to generate revenue has slightly decreased over the last two years.
- Overall Insights
- The financial data reveal consistent revenue growth accompanied by ongoing investment in fixed assets. However, the declining asset turnover ratio in recent years suggests a potential decrease in operational efficiency relating to asset usage. This may warrant further analysis to understand underlying factors such as capacity utilization, asset aging, or shifts in production processes. The company appears to be expanding its asset base steadily, but managing to sustain proportionate revenue growth with these increased investments may require closer attention going forward.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
PepsiCo Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 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.
- Net Revenue
- The net revenue shows a consistent upward trend from 2020 to 2024. Starting at $70,372 million in 2020, it increased steadily each year, reaching $91,854 million by 2024. Although growth appears to slow down slightly after 2023, the overall increase across the five-year period is significant, indicating sustained business expansion or improved sales performance.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment, including operating lease and right-of-use assets, also exhibits a continuous increase throughout the period. Beginning at $23,039 million in 2020, it rises annually, reaching $31,391 million in 2024. This consistent growth suggests ongoing investment in long-term assets, possibly reflecting capacity expansion or modernization initiatives.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a fluctuating but generally declining trend between 2020 and 2024. It starts at 3.05 in 2020, increases slightly to a peak of 3.25 in 2021, then experiences a gradual decrease to 2.93 by 2024. This decline indicates that while fixed asset investments have increased, the efficiency of asset utilization to generate revenue has diminished over the later years, possibly due to lagging revenue growth relative to asset base expansion or changes in asset productivity.
Total Asset Turnover
PepsiCo Inc., total asset turnover calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Total asset turnover = Net revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends for the company. Net revenue shows a consistent upward trajectory, increasing each year from approximately 70.4 billion US dollars in 2020 to around 91.9 billion US dollars in 2024. This steady growth indicates sustained revenue generation capacity and possibly expanded market presence or product demand over the years.
Total assets remained relatively stable during the initial years, with a slight decrease from about 92.9 billion in 2020 to 92.2 billion in 2022. However, a noticeable increase occurred in 2023, reaching approximately 100.5 billion US dollars, followed by a minor decline to about 99.5 billion US dollars in 2024. This pattern may suggest strategic investment or asset acquisition around 2023, with a slight consolidation or revaluation afterward.
The total asset turnover ratio, a measure of efficiency in utilizing assets to generate revenue, generally improved from 0.76 in 2020 to 0.94 in 2022. This indicates enhanced operational efficiency over that period. Although there was a slight dip to 0.91 in 2023, the ratio rebounded slightly to 0.92 in 2024. Despite minor fluctuations, the overall trend points to more effective asset use in generating sales over the analyzed period.
- Net Revenue
- Consistently increased yearly, reflecting steady growth from $70.4B to $91.9B over five years.
- Total Assets
- Stable with slight decline during 2020-2022, followed by a significant rise in 2023, then a small decline in 2024.
- Total Asset Turnover
- Improved efficiency from 0.76 to 0.94 between 2020 and 2022; slight fluctuations but overall strong operational efficiency maintained through 2024.
Equity Turnover
PepsiCo Inc., equity turnover calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Equity turnover = Net revenue ÷ Total PepsiCo common shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue shows a consistent upward trend over the five-year period. Starting at approximately 70.4 billion US dollars in 2020, it increased each year, reaching around 91.9 billion US dollars by 2024. The growth rate shows a strong increase from 2020 to 2021 and continuous, though more moderate, growth through 2024.
- Total Common Shareholders’ Equity
- Total shareholders’ equity also exhibited an overall growth trend, rising from about 13.5 billion US dollars in 2020 to a peak of approximately 18.5 billion US dollars in 2023. However, there was a slight decline in 2024, with the equity reducing to around 18.0 billion US dollars. This indicates a general strengthening of the equity base with a minor retracement in the latest period.
- Equity Turnover Ratio
- The equity turnover ratio remained relatively stable throughout the period, fluctuating narrowly between 4.94 and 5.23. It started at 5.23 in 2020, experienced a slight decline and variability in subsequent years, and ended marginally higher at 5.09 in 2024 compared to 2023. This stability suggests consistent efficiency in using shareholders’ equity to generate revenue over time.