Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
PepsiCo Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | PepsiCo Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | PepsiCo Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | PepsiCo Inc. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | PepsiCo Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | PepsiCo Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
PepsiCo Inc., inventory turnover calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 37,075 | 31,797 | 30,132 | 29,381 | 28,785 | |
| Inventories | 4,347 | 4,172 | 3,338 | 3,128 | 2,947 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 8.53 | 7.62 | 9.03 | 9.39 | 9.77 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Altria Group Inc. | 5.96 | 3.98 | 3.09 | 3.16 | 3.39 | |
| Coca-Cola Co. | 4.50 | 4.11 | 4.33 | 4.26 | 4.99 | |
| Mondelēz International Inc. | 6.45 | 6.10 | 6.10 | 6.01 | 6.19 | |
| Philip Morris International Inc. | 1.15 | 1.00 | 1.14 | 1.22 | 1.18 | |
| Inventory Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 4.27 | 3.64 | 3.75 | 3.82 | 3.95 | |
| Inventory Turnover, Industry | ||||||
| Consumer Staples | 8.09 | 7.58 | 7.55 | 7.49 | 7.43 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 37,075 ÷ 4,347 = 8.53
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | PepsiCo Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Receivables Turnover
PepsiCo Inc., receivables turnover calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 79,474 | 70,372 | 67,161 | 64,661 | 63,525 | |
| Accounts and notes receivable, net | 8,680 | 8,404 | 7,822 | 7,142 | 7,024 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 9.16 | 8.37 | 8.59 | 9.05 | 9.04 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 553.47 | 190.90 | 165.20 | 178.62 | 180.11 | |
| Coca-Cola Co. | 11.01 | 10.50 | 9.38 | 9.38 | 9.66 | |
| Mondelēz International Inc. | 12.29 | 11.57 | 11.69 | 11.47 | 9.62 | |
| Philip Morris International Inc. | 26.33 | 26.18 | 25.30 | 27.06 | 24.45 | |
| Receivables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 14.41 | 13.75 | 13.54 | 14.32 | 13.67 | |
| Receivables Turnover, Industry | ||||||
| Consumer Staples | 32.96 | 32.43 | 29.79 | 31.15 | 29.51 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Receivables turnover = Net revenue ÷ Accounts and notes receivable, net
= 79,474 ÷ 8,680 = 9.16
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | PepsiCo Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Payables Turnover
PepsiCo Inc., payables turnover calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 37,075 | 31,797 | 30,132 | 29,381 | 28,785 | |
| Accounts payable | 9,834 | 8,853 | 8,013 | 7,213 | 6,727 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.77 | 3.59 | 3.76 | 4.07 | 4.28 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 15.86 | 20.57 | 21.80 | 18.48 | 20.17 | |
| Coca-Cola Co. | 3.34 | 3.82 | 3.84 | 4.71 | 5.79 | |
| Mondelēz International Inc. | 2.60 | 2.60 | 2.65 | 2.69 | 2.77 | |
| Philip Morris International Inc. | 3.01 | 3.44 | 4.57 | 5.20 | 4.65 | |
| Payables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.49 | 3.62 | 3.84 | 4.17 | 4.38 | |
| Payables Turnover, Industry | ||||||
| Consumer Staples | 6.77 | 6.80 | 6.89 | 6.98 | 7.37 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 37,075 ÷ 9,834 = 3.77
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | PepsiCo Inc. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Working Capital Turnover
PepsiCo Inc., working capital turnover calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 21,783 | 23,001 | 17,645 | 21,893 | 31,027 | |
| Less: Current liabilities | 26,220 | 23,372 | 20,461 | 22,138 | 20,502 | |
| Working capital | (4,437) | (371) | (2,816) | (245) | 10,525 | |
| Net revenue | 79,474 | 70,372 | 67,161 | 64,661 | 63,525 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | 6.04 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Coca-Cola Co. | 14.90 | 7.12 | — | 22.58 | 3.79 | |
| Mondelēz International Inc. | — | — | — | — | — | |
| Philip Morris International Inc. | — | 40.52 | 46.35 | 35.46 | 13.87 | |
| Working Capital Turnover, Sector | ||||||
| Food, Beverage & Tobacco | — | — | — | — | 15.45 | |
| Working Capital Turnover, Industry | ||||||
| Consumer Staples | — | — | — | — | 184.71 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Working capital turnover = Net revenue ÷ Working capital
= 79,474 ÷ -4,437 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
PepsiCo Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 8.53 | 7.62 | 9.03 | 9.39 | 9.77 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 43 | 48 | 40 | 39 | 37 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Altria Group Inc. | 61 | 92 | 118 | 115 | 108 | |
| Coca-Cola Co. | 81 | 89 | 84 | 86 | 73 | |
| Mondelēz International Inc. | 57 | 60 | 60 | 61 | 59 | |
| Philip Morris International Inc. | 317 | 366 | 321 | 299 | 308 | |
| Average Inventory Processing Period, Sector | ||||||
| Food, Beverage & Tobacco | 85 | 100 | 97 | 96 | 92 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Staples | 45 | 48 | 48 | 49 | 49 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.53 = 43
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | PepsiCo Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Average Receivable Collection Period
PepsiCo Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 9.16 | 8.37 | 8.59 | 9.05 | 9.04 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 40 | 44 | 43 | 40 | 40 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Altria Group Inc. | 1 | 2 | 2 | 2 | 2 | |
| Coca-Cola Co. | 33 | 35 | 39 | 39 | 38 | |
| Mondelēz International Inc. | 30 | 32 | 31 | 32 | 38 | |
| Philip Morris International Inc. | 14 | 14 | 14 | 13 | 15 | |
| Average Receivable Collection Period, Sector | ||||||
| Food, Beverage & Tobacco | 25 | 27 | 27 | 25 | 27 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Staples | 11 | 11 | 12 | 12 | 12 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.16 = 40
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | PepsiCo Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Operating Cycle
PepsiCo Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 43 | 48 | 40 | 39 | 37 | |
| Average receivable collection period | 40 | 44 | 43 | 40 | 40 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 83 | 92 | 83 | 79 | 77 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Altria Group Inc. | 62 | 94 | 120 | 117 | 110 | |
| Coca-Cola Co. | 114 | 124 | 123 | 125 | 111 | |
| Mondelēz International Inc. | 87 | 92 | 91 | 93 | 97 | |
| Philip Morris International Inc. | 331 | 380 | 335 | 312 | 323 | |
| Operating Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 110 | 127 | 124 | 121 | 119 | |
| Operating Cycle, Industry | ||||||
| Consumer Staples | 56 | 59 | 60 | 61 | 61 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 43 + 40 = 83
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
PepsiCo Inc., average payables payment period calculation, comparison to benchmarks
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.77 | 3.59 | 3.76 | 4.07 | 4.28 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 97 | 102 | 97 | 90 | 85 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Altria Group Inc. | 23 | 18 | 17 | 20 | 18 | |
| Coca-Cola Co. | 109 | 96 | 95 | 77 | 63 | |
| Mondelēz International Inc. | 141 | 140 | 138 | 136 | 132 | |
| Philip Morris International Inc. | 121 | 106 | 80 | 70 | 78 | |
| Average Payables Payment Period, Sector | ||||||
| Food, Beverage & Tobacco | 105 | 101 | 95 | 88 | 83 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Staples | 54 | 54 | 53 | 52 | 50 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.77 = 97
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
PepsiCo Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 43 | 48 | 40 | 39 | 37 | |
| Average receivable collection period | 40 | 44 | 43 | 40 | 40 | |
| Average payables payment period | 97 | 102 | 97 | 90 | 85 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -14 | -10 | -14 | -11 | -8 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Altria Group Inc. | 39 | 76 | 103 | 97 | 92 | |
| Coca-Cola Co. | 5 | 28 | 28 | 48 | 48 | |
| Mondelēz International Inc. | -54 | -48 | -47 | -43 | -35 | |
| Philip Morris International Inc. | 210 | 274 | 255 | 242 | 245 | |
| Cash Conversion Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 5 | 26 | 29 | 33 | 36 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Staples | 2 | 5 | 7 | 9 | 11 | |
Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 43 + 40 – 97 = -14
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |