Liquidity Analysis

Difficulty level: Basic

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

PepsiCo Inc., liquidity ratios

 
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010
Current ratio 1.14 1.24 1.10 0.96 1.11
Quick ratio 0.85 0.93 0.80 0.62 0.80
Cash ratio 0.48 0.54 0.39 0.24 0.40

Source: Based on data from PepsiCo Inc. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. PepsiCo Inc.'s current ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. PepsiCo Inc.'s quick ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. PepsiCo Inc.'s cash ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.

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Current Ratio

PepsiCo Inc., current ratio calculation, comparison to benchmarks

 
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010
Selected Financial Data (USD $ in millions)
Current assets 20,663  22,203  18,720  17,441  17,569 
Current liabilities 18,092  17,839  17,089  18,154  15,892 
Ratio
Current ratio1 1.14 1.24 1.10 0.96 1.11
Benchmarks
Current Ratio, Competitors
Coca-Cola Co. 1.02 1.13 1.09 1.05 1.17
Current Ratio, Sector
Soft Drinks 1.06 1.17 1.09 1.01 1.14
Current Ratio, Industry
Consumer Goods 1.11 1.16 1.15 1.12 1.16

Source: Based on data from PepsiCo Inc. Annual Reports

2014 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 20,663 ÷ 18,092 = 1.14

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. PepsiCo Inc.'s current ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level.

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Quick Ratio

PepsiCo Inc., quick ratio calculation, comparison to benchmarks

 
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 6,134  9,375  6,297  4,067  5,943 
Short-term investments 2,592  303  322  358  426 
Accounts and notes receivable, net 6,651  6,954  7,041  6,912  6,323 
Total quick assets 15,377  16,632  13,660  11,337  12,692 
Current liabilities 18,092  17,839  17,089  18,154  15,892 
Ratio
Quick ratio1 0.85 0.93 0.80 0.62 0.80
Benchmarks
Quick Ratio, Competitors
Coca-Cola Co. 0.81 0.90 0.77 0.78 0.85
Quick Ratio, Sector
Soft Drinks 0.82 0.92 0.78 0.71 0.83
Quick Ratio, Industry
Consumer Goods 0.76 0.80 0.77 0.78 0.81

Source: Based on data from PepsiCo Inc. Annual Reports

2014 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 15,377 ÷ 18,092 = 0.85

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. PepsiCo Inc.'s quick ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level.

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Cash Ratio

PepsiCo Inc., cash ratio calculation, comparison to benchmarks

 
Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011 Dec 25, 2010
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 6,134  9,375  6,297  4,067  5,943 
Short-term investments 2,592  303  322  358  426 
Total cash assets 8,726  9,678  6,619  4,425  6,369 
Current liabilities 18,092  17,839  17,089  18,154  15,892 
Ratio
Cash ratio1 0.48 0.54 0.39 0.24 0.40
Benchmarks
Cash Ratio, Competitors
Coca-Cola Co. 0.67 0.73 0.59 0.58 0.61
Cash Ratio, Sector
Soft Drinks 0.60 0.66 0.52 0.43 0.51
Cash Ratio, Industry
Consumer Goods 0.37 0.39 0.37 0.39 0.40

Source: Based on data from PepsiCo Inc. Annual Reports

2014 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 8,726 ÷ 18,092 = 0.48

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. PepsiCo Inc.'s cash ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.

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