PepsiCo Inc (PEP)
Payables 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 |
| Payables | US$ in thousands | 10,997,000 | 11,635,000 | 10,732,000 | 9,834,000 | 8,853,000 |
| Payables turnover | 3.80 | 3.60 | 3.78 | 3.77 | 3.59 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $41,744,000K ÷ $10,997,000K
= 3.80
The payables turnover for PepsiCo Inc has shown a consistent trend over the past five years. The ratio has been relatively stable, starting at 3.59 in December 2020 and gradually increasing to 3.80 by December 2024. This indicates that PepsiCo is managing its accounts payable efficiently, as it is able to turn over its payables approximately 3.6 to 3.8 times a year. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could imply strong supplier relationships or efficient working capital management. Overall, the increasing trend in the payables turnover ratio reflects positively on PepsiCo's ability to effectively manage its accounts payable.
Peer comparison
Dec 31, 2024