PepsiCo Inc (PEP)

Payables 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
Payables	US$ in thousands	11,635,000	—	—	—	10,732,000	—	—	—	9,834,000	—	—	—	8,853,000	—	—	—	8,013,000	—	—	7,213,000
Payables turnover		3.60	—	—	—	3.78	—	—	—	3.77	—	—	—	3.59	—	—	—	3.95	—	—	4.07

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $41,881,000K ÷ $11,635,000K
= 3.60

PepsiCo Inc's payables turnover ratio has exhibited fluctuation over the recent quarters. The ratio was 3.60 as of December 31, 2023, indicating that the company's payables turnover slowed down compared to the preceding quarter. This could imply that PepsiCo is taking longer to pay off its short-term obligations to suppliers.

For December 31, 2022, the ratio was 3.78, which was slightly lower than the payables turnover for December 31, 2019, at 3.95, showing a decrease in efficiency in managing payables. This suggests that PepsiCo may have extended payment terms or is experiencing challenges in timely settling its accounts payable.

Additionally, the payables turnover for March 31, 2021, and 2020 stood at 3.59 and 4.07, respectively. This indicates a noticeable decrease in efficiency in managing payables over the quarters, possibly due to changes in purchasing behavior, economic conditions, or operational challenges.

Overall, the trend in PepsiCo's payables turnover ratio suggests a need for closer monitoring of the company's accounts payable management to ensure optimal cash flow and liquidity management.