Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Turnover Ratios
Inventory turnover 7.85 7.77 8.53 7.62 9.03
Receivables turnover 8.46 8.50 9.16 8.37 8.59
Payables turnover 3.60 3.78 3.77 3.59 3.76
Working capital turnover
Average No. Days
Average inventory processing period 46 47 43 48 40
Add: Average receivable collection period 43 43 40 44 43
Operating cycle 89 90 83 92 83
Less: Average payables payment period 101 97 97 102 97
Cash conversion cycle -12 -7 -14 -10 -14

Based on: 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), 10-K (reporting date: 2019-12-28).

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 2021 to 2022 but then slightly improved from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. PepsiCo Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. PepsiCo Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

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 2021 to 2022 but then slightly improved from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. PepsiCo Inc. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
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. PepsiCo Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Inventory Turnover

PepsiCo Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Cost of sales 41,881 40,576 37,075 31,797 30,132
Inventories 5,334 5,222 4,347 4,172 3,338
Short-term Activity Ratio
Inventory turnover1 7.85 7.77 8.53 7.62 9.03
Benchmarks
Inventory Turnover, Competitors2
Coca-Cola Co. 4.19 4.25 4.50 4.11 4.33
Mondelēz International Inc. 6.16 5.97 6.45 6.10 6.10
Inventory Turnover, Sector
Food, Beverage & Tobacco 6.18 6.14 6.68 6.08 6.51
Inventory Turnover, Industry
Consumer Staples 8.25 7.63 8.86 8.50 8.39

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 41,881 ÷ 5,334 = 7.85

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 2021 to 2022 but then slightly improved from 2022 to 2023.

Receivables Turnover

PepsiCo Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Net revenue 91,471 86,392 79,474 70,372 67,161
Accounts and notes receivable, net 10,815 10,163 8,680 8,404 7,822
Short-term Activity Ratio
Receivables turnover1 8.46 8.50 9.16 8.37 8.59
Benchmarks
Receivables Turnover, Competitors2
Coca-Cola Co. 13.42 12.33 11.01 10.50 9.38
Mondelēz International Inc. 9.91 10.20 12.29 11.57 11.69
Receivables Turnover, Sector
Food, Beverage & Tobacco 9.70 9.61 10.11 9.39 9.30
Receivables Turnover, Industry
Consumer Staples 34.75 34.18 37.68 36.47 34.01

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Receivables turnover = Net revenue ÷ Accounts and notes receivable, net
= 91,471 ÷ 10,815 = 8.46

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 2021 to 2022 and from 2022 to 2023.

Payables Turnover

PepsiCo Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Cost of sales 41,881 40,576 37,075 31,797 30,132
Accounts payable 11,635 10,732 9,834 8,853 8,013
Short-term Activity Ratio
Payables turnover1 3.60 3.78 3.77 3.59 3.76
Benchmarks
Payables Turnover, Competitors2
Coca-Cola Co. 3.31 3.39 3.34 3.82 3.84
Mondelēz International Inc. 2.67 2.67 2.60 2.60 2.65
Payables Turnover, Sector
Food, Beverage & Tobacco 3.24 3.34 3.30 3.30 3.41
Payables Turnover, Industry
Consumer Staples 7.08 6.49 6.75 6.79 6.84

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 41,881 ÷ 11,635 = 3.60

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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Working Capital Turnover

PepsiCo Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Current assets 26,950 21,539 21,783 23,001 17,645
Less: Current liabilities 31,647 26,785 26,220 23,372 20,461
Working capital (4,697) (5,246) (4,437) (371) (2,816)
 
Net revenue 91,471 86,392 79,474 70,372 67,161
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Coca-Cola Co. 14.47 15.00 14.90 7.12
Mondelēz International Inc.
Working Capital Turnover, Sector
Food, Beverage & Tobacco
Working Capital Turnover, Industry
Consumer Staples

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Working capital turnover = Net revenue ÷ Working capital
= 91,471 ÷ -4,697 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

PepsiCo Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data
Inventory turnover 7.85 7.77 8.53 7.62 9.03
Short-term Activity Ratio (no. days)
Average inventory processing period1 46 47 43 48 40
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Coca-Cola Co. 87 86 81 89 84
Mondelēz International Inc. 59 61 57 60 60
Average Inventory Processing Period, Sector
Food, Beverage & Tobacco 59 59 55 60 56
Average Inventory Processing Period, Industry
Consumer Staples 44 48 41 43 44

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 7.85 = 46

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 2021 to 2022 but then slightly improved from 2022 to 2023.

Average Receivable Collection Period

PepsiCo Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data
Receivables turnover 8.46 8.50 9.16 8.37 8.59
Short-term Activity Ratio (no. days)
Average receivable collection period1 43 43 40 44 43
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Coca-Cola Co. 27 30 33 35 39
Mondelēz International Inc. 37 36 30 32 31
Average Receivable Collection Period, Sector
Food, Beverage & Tobacco 38 38 36 39 39
Average Receivable Collection Period, Industry
Consumer Staples 11 11 10 10 11

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.46 = 43

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.

Operating Cycle

PepsiCo Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data
Average inventory processing period 46 47 43 48 40
Average receivable collection period 43 43 40 44 43
Short-term Activity Ratio
Operating cycle1 89 90 83 92 83
Benchmarks
Operating Cycle, Competitors2
Coca-Cola Co. 114 116 114 124 123
Mondelēz International Inc. 96 97 87 92 91
Operating Cycle, Sector
Food, Beverage & Tobacco 97 97 91 99 95
Operating Cycle, Industry
Consumer Staples 55 59 51 53 55

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 46 + 43 = 89

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. PepsiCo Inc. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Average Payables Payment Period

PepsiCo Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data
Payables turnover 3.60 3.78 3.77 3.59 3.76
Short-term Activity Ratio (no. days)
Average payables payment period1 101 97 97 102 97
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Coca-Cola Co. 110 108 109 96 95
Mondelēz International Inc. 136 137 141 140 138
Average Payables Payment Period, Sector
Food, Beverage & Tobacco 113 109 111 111 107
Average Payables Payment Period, Industry
Consumer Staples 52 56 54 54 53

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.60 = 101

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
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data
Average inventory processing period 46 47 43 48 40
Average receivable collection period 43 43 40 44 43
Average payables payment period 101 97 97 102 97
Short-term Activity Ratio
Cash conversion cycle1 -12 -7 -14 -10 -14
Benchmarks
Cash Conversion Cycle, Competitors2
Coca-Cola Co. 4 8 5 28 28
Mondelēz International Inc. -40 -40 -54 -48 -47
Cash Conversion Cycle, Sector
Food, Beverage & Tobacco -16 -12 -20 -12 -12
Cash Conversion Cycle, Industry
Consumer Staples 3 3 -3 -1 2

Based on: 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), 10-K (reporting date: 2019-12-28).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 46 + 43101 = -12

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. PepsiCo Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.