PepsiCo Inc (PEP)
Fixed asset turnover
| Dec 31, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | Dec 31, 2021 | Sep 4, 2021 | Jun 12, 2021 | Mar 20, 2021 | Dec 31, 2020 | Sep 5, 2020 | Jun 13, 2020 | Mar 21, 2020 | Dec 31, 2019 | Sep 7, 2019 | Mar 23, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 91,471,000 | 91,617,000 | 90,135,000 | 88,038,000 | 86,392,000 | 83,644,000 | 81,862,000 | 80,854,000 | 79,474,000 | 76,681,000 | 74,583,000 | 71,311,000 | 70,372,000 | 68,557,000 | 67,654,000 | 64,593,000 | 70,236,000 | 66,081,000 | 64,983,000 | 64,661,000 |
| Property, plant and equipment | US$ in thousands | 27,039,000 | 24,853,000 | 24,500,000 | 24,228,000 | 24,291,000 | 22,800,000 | 22,694,000 | 22,017,000 | 22,407,000 | 21,257,000 | 21,619,000 | 21,249,000 | 21,369,000 | 19,726,000 | 19,187,000 | 18,980,000 | 19,305,000 | 17,586,000 | 17,550,000 | 17,589,000 |
| Fixed asset turnover | 3.38 | 3.69 | 3.68 | 3.63 | 3.56 | 3.67 | 3.61 | 3.67 | 3.55 | 3.61 | 3.45 | 3.36 | 3.29 | 3.48 | 3.53 | 3.40 | 3.64 | 3.76 | 3.70 | 3.68 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $91,471,000K ÷ $27,039,000K
= 3.38
The fixed asset turnover ratio for PepsiCo Inc has shown fluctuations over the past five years, ranging from a low of 3.29 in March 2020 to a high of 3.76 in September 2019. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
A higher fixed asset turnover ratio suggests that PepsiCo is effectively using its fixed assets to generate sales, while a lower ratio may indicate inefficiencies or underutilization of fixed assets.
The ratio has generally been above 3.5, indicating that PepsiCo has been able to efficiently generate sales relative to its investment in fixed assets. However, there have been some fluctuations in the ratio over time, which could be attributed to changes in the company's asset base, sales volumes, or operational efficiency.
Overall, the trend in PepsiCo's fixed asset turnover ratio suggests a relatively consistent level of efficiency in utilizing its fixed assets to drive revenue generation. It is important for the company to continue monitoring and managing its fixed asset utilization to ensure optimal performance in the future.
Peer comparison
Dec 31, 2023