PepsiCo Inc (PEP)

Inventory turnover

		Dec 31, 2024	Sep 7, 2024	Jun 15, 2024	Mar 23, 2024	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
Cost of revenue (ttm)	US$ in thousands	41,744,000	41,660,000	41,939,000	42,141,000	41,881,000	42,204,000	41,837,000	41,131,000	40,576,000	39,286,000	38,372,000	37,837,000	37,075,000	35,371,000	34,133,000	32,341,000	31,797,000	30,717,000	30,255,000	28,855,000
Inventory	US$ in thousands	5,306,000	5,644,000	5,887,000	5,569,000	5,334,000	5,558,000	5,969,000	5,697,000	5,222,000	5,019,000	5,287,000	4,762,000	4,347,000	4,364,000	5,006,000	4,556,000	4,172,000	4,135,000	4,314,000	3,600,000
Inventory turnover		7.87	7.38	7.12	7.57	7.85	7.59	7.01	7.22	7.77	7.83	7.26	7.95	8.53	8.11	6.82	7.10	7.62	7.43	7.01	8.02

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $41,744,000K ÷ $5,306,000K
= 7.87

The inventory turnover of PepsiCo Inc has shown some fluctuations over the period covered by the data. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a certain period.

Based on the provided data, PepsiCo's inventory turnover ranged from a low of 6.82 times in June 2021 to a high of 8.53 times in December 2021. The average inventory turnover for the period was approximately 7.55 times.

A higher inventory turnover ratio signifies that the company is selling its inventory at a faster rate, which is generally positive as it indicates efficient inventory management. On the other hand, a lower ratio may suggest overstocking or slow-moving inventory.

Overall, PepsiCo's inventory turnover ratios have remained relatively stable, with some seasonal variations. It is essential for the company to manage its inventory levels effectively to support sales and avoid excess carrying costs.