PepsiCo Inc (PEP)
Payables 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 |
| Payables | US$ in thousands | 11,635,000 | 10,732,000 | 9,834,000 | 8,853,000 | 8,013,000 |
| Payables turnover | 3.60 | 3.78 | 3.77 | 3.59 | 3.76 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $41,881,000K ÷ $11,635,000K
= 3.60
PepsiCo Inc's payables turnover ratio has shown a fluctuating trend over the past five years. The ratio decreased from 3.76 in 2019 to 3.59 in 2020, followed by a slight increase to 3.77 in 2021. In 2022, the ratio further improved to 3.78 but then decreased again to 3.60 in 2023.
The payables turnover ratio measures how efficiently a company manages its trade payables by evaluating the number of times a company pays off its average accounts payable balance within a specific period. A higher turnover ratio generally indicates that the company is paying off its suppliers more frequently, possibly taking advantage of discounts or maintaining good relationships with suppliers.
The slight decrease in the payables turnover ratio from 2022 to 2023 may suggest that PepsiCo Inc took longer to pay off its suppliers' invoices in 2023 compared to the previous year. This trend should be further investigated to understand the company's payment policies and supplier relationships in more detail.
Peer comparison
Dec 31, 2023