Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

PepsiCo Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Turnover Ratios
Inventory turnover 8.53 7.62 9.03 9.39 9.77
Receivables turnover 9.16 8.37 8.59 9.05 9.04
Payables turnover 3.77 3.59 3.76 4.07 4.28
Working capital turnover 6.04
Average No. Days
Average inventory processing period 43 48 40 39 37
Add: Average receivable collection period 40 44 43 40 40
Operating cycle 83 92 83 79 77
Less: Average payables payment period 97 102 97 90 85
Cash conversion cycle -14 -10 -14 -11 -8

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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 + 4097 = -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.