PepsiCo Inc (PEP)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.89	8.46	8.50	9.16	8.37
DSO	days	41.06	43.16	42.94	39.86	43.59

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.89
= 41.06

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect revenue after a sale has been made. Analyzing PepsiCo Inc's DSO based on the provided data reveals the following trends:

- As of December 31, 2020, PepsiCo's DSO stood at 43.59 days, indicating that, on average, the company took approximately 43.59 days to collect its sales revenue.
- By December 31, 2021, PepsiCo had improved its DSO to 39.86 days, suggesting that the company was able to collect revenue more efficiently, reducing the average collection period to 39.86 days.
- However, in the following years, PepsiCo saw a slight increase in its DSO. By December 31, 2022, the DSO rose to 42.94 days, and by December 31, 2023, it was slightly higher at 43.16 days.
- Nonetheless, by December 31, 2024, PepsiCo managed to lower its DSO to 41.06 days, indicating an improvement in collecting sales revenue more promptly compared to the previous year.

Overall, the fluctuation in PepsiCo's DSO over the years demonstrates the company's ability to manage its accounts receivable efficiently. While there were minor fluctuations, the trend suggests that PepsiCo made efforts to optimize its collection process and reduce the average number of days it takes to convert sales into cash.