PepsiCo Inc (PEP)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	41,881,000	40,576,000	37,075,000	31,797,000	30,132,000
Inventory	US$ in thousands	5,334,000	5,222,000	4,347,000	4,172,000	3,338,000
Inventory turnover		7.85	7.77	8.53	7.62	9.03

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $41,881,000K ÷ $5,334,000K
= 7.85

The inventory turnover ratios for PepsiCo Inc over the past five years have shown a fluctuating trend. The ratio indicates how efficiently the company is managing its inventory levels by measuring how many times the inventory is sold and replaced within a specific time period.

In 2023, the inventory turnover ratio was 7.85, indicating that PepsiCo turned over its inventory approximately 7.85 times during the year. This was a slight improvement from the previous year's ratio of 7.77.

Compared to 2021, when the ratio was 8.53, the inventory turnover decreased in 2023, suggesting that PepsiCo may have held onto its inventory for slightly longer periods.

In 2019, the inventory turnover ratio was at its highest at 9.03, showing that PepsiCo was more efficient in managing its inventory that year compared to the subsequent years.

Overall, while the trend in inventory turnover ratios has been somewhat uneven in recent years, PepsiCo continues to demonstrate effective inventory management practices, although there may be room for improvement in optimizing inventory turnover.