PepsiCo Inc (PEP)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	8.46	7.78	7.87	8.41	8.50	—	—	—	9.16	—	—	—	8.37	—	—	—	—	—	—	—
Payables turnover	3.60	—	—	—	3.78	—	—	—	3.77	—	—	—	3.59	—	—	—	3.95	—	—	4.07
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	29.49	—	—	—	—

PepsiCo Inc's inventory turnover ratio has shown consistent stability over the past five quarters, ranging between 7.01 and 8.53. This indicates that the company is effectively managing its inventory levels and converting them into sales efficiently.

The receivables turnover ratio has fluctuated between 7.78 and 9.16, suggesting that PepsiCo is collecting its receivables in a timely manner. Although data is missing for some quarters, the overall trend indicates a reasonable management of accounts receivable.

Payables turnover ratio has been relatively steady, ranging from 3.59 to 4.07. This indicates that PepsiCo is managing its trade payables effectively, balancing the timing of payments with available cash flow.

The lack of data for the working capital turnover ratio limits a comprehensive analysis of PepsiCo's efficiency in utilizing its working capital to generate sales.

Overall, based on the available data, PepsiCo appears to be effectively managing its activity ratios, with efficient inventory turnover and satisfactory receivables and payables turnover.

Average number of days

		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
Days of inventory on hand (DOH)	days	46.49	48.07	52.08	50.56	46.97	46.63	50.29	45.94	42.80	45.03	53.53	51.42	47.89	49.13	52.04	45.54	38.48	44.85	44.10	38.86
Days of sales outstanding (DSO)	days	43.16	46.94	46.39	43.40	42.94	—	—	—	39.86	—	—	—	43.59	—	—	—	—	—	—	—
Number of days of payables	days	101.40	—	—	—	96.54	—	—	—	96.81	—	—	—	101.62	—	—	—	92.37	—	—	89.61

Days of Inventory on Hand (DOH) for PepsiCo Inc have fluctuated over the past few years, ranging from a low of 38.48 days to a high of 53.53 days. This indicates the average number of days it takes for the company to sell its inventory, with lower numbers suggesting efficient inventory management.

Days of Sales Outstanding (DSO) data is incomplete, but when available, it shows the number of days it takes for PepsiCo to collect on its sales. The lower the DSO, the better, as it indicates faster collection of accounts receivable.

The Number of Days of Payables for PepsiCo shows the average number of days it takes for the company to pay its suppliers. This metric has ranged from around 89.61 days to 101.62 days, suggesting the company's payment terms and ability to manage its liabilities.

Overall, analyzing activity ratios such as DOH, DSO, and payables turnover can provide insights into PepsiCo's efficiency in managing its inventory, collecting receivables, and handling payment obligations.

Long-term

	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
Fixed asset turnover	3.38	3.69	3.68	3.63	3.56	3.67	3.61	3.67	3.55	3.61	3.45	3.36	3.29	3.48	3.53	3.40	3.64	3.76	3.70	3.68
Total asset turnover	0.91	0.92	0.94	0.95	0.94	0.89	0.88	0.87	0.86	0.82	0.81	0.78	0.76	0.74	0.76	0.76	0.89	0.85	0.86	0.83

The fixed asset turnover ratio for PepsiCo Inc has been relatively consistent over the periods analyzed, ranging from 3.29 to 3.69. This indicates that the company generates between $3.29 and $3.69 in revenue for every dollar of fixed assets it owns. A higher ratio suggests better efficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio fluctuated between 0.74 and 0.95 during the same period. This ratio indicates that PepsiCo generates revenue of between $0.74 and $0.95 for every dollar of total assets it possesses. A higher total asset turnover ratio generally signifies effective asset utilization to generate sales.

Comparing the fixed asset turnover to the total asset turnover, it appears that PepsiCo is more efficient in generating sales from its fixed assets rather than total assets. Overall, these ratios provide insights into the company's operational efficiency and asset utilization over the various reporting periods.