PepsiCo Inc (PEP)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	31,664,000	29,845,000	29,414,000	29,381,000
Inventory	US$ in thousands	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	3,338,000	3,667,000	3,554,000	3,128,000
Inventory turnover		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	9.49	8.14	8.28	9.39

December 31, 2023 calculation

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

PepsiCo Inc's inventory turnover has shown some fluctuations over the past few years, ranging from a low of 6.82 in June 2021 to a high of 9.49 in September 2019. The overall trend indicates a generally stable performance in managing inventory levels efficiently.

The average inventory turnover ratio for the period under review is approximately 7.76. This implies that, on average, PepsiCo Inc turns over its inventory approximately 7.76 times in a year. A higher inventory turnover ratio suggests that the company is selling and replacing its inventory more quickly, which can be indicative of effective inventory management practices.

It is important to note that changes in inventory turnover can be influenced by various factors, such as seasonality, economic conditions, and product demand. Therefore, continued monitoring and analysis of inventory turnover trends are crucial for assessing operational efficiency and potential liquidity risks.