PepsiCo Inc (PEP)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 91,471,000 | 86,392,000 | 79,474,000 | 70,372,000 | 67,161,000 |
| Receivables | US$ in thousands | 10,815,000 | 10,163,000 | 8,680,000 | 8,404,000 | 7,822,000 |
| Receivables turnover | 8.46 | 8.50 | 9.16 | 8.37 | 8.59 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $91,471,000K ÷ $10,815,000K
= 8.46
PepsiCo Inc's receivables turnover ratio measures the efficiency of the company in collecting payments from its customers. The ratio has been relatively stable over the past five years, ranging from 8.37 to 9.16 times.
A higher receivables turnover indicates that PepsiCo is efficiently collecting payments from customers, which is a positive sign of effective credit management and timely receivables collection. This efficiency can help improve cash flow and overall liquidity for the company.
Although there has been some fluctuation in the ratio over the years, the consistency in the range suggests that PepsiCo has been maintaining a steady pace in collecting its accounts receivable. However, it is important to monitor any significant changes in the ratio to ensure that the company continues to effectively manage its receivables and liquidity position.
Peer comparison
Dec 31, 2023