PepsiCo Inc (PEP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 41,744,000 | 41,881,000 | 40,576,000 | 37,075,000 | 31,797,000 |
| Inventory | US$ in thousands | 5,306,000 | 5,334,000 | 5,222,000 | 4,347,000 | 4,172,000 |
| Inventory turnover | 7.87 | 7.85 | 7.77 | 8.53 | 7.62 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $41,744,000K ÷ $5,306,000K
= 7.87
The inventory turnover ratio for PepsiCo Inc has shown a generally positive trend over the years, increasing from 7.62 in December 31, 2020, to 8.53 in December 31, 2021. Although there was a slight decrease in the ratio to 7.77 in December 31, 2022, it remained relatively stable around the 7.8 range in subsequent years.
This indicates that PepsiCo has been able to manage its inventory efficiently, converting its stock into sales at a quicker pace. A higher inventory turnover ratio suggests that the company is selling its products quickly, minimizing the risk of obsolete inventory and potentially reducing storage costs.
Overall, the inventory turnover ratio for PepsiCo Inc reflects effective inventory management practices, supporting its operational efficiency and financial performance.
Peer comparison
Dec 31, 2024