PepsiCo Inc (PEP)
Total asset 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 |
| Total assets | US$ in thousands | 100,495,000 | 92,187,000 | 92,377,000 | 92,918,000 | 78,547,000 |
| Total asset turnover | 0.91 | 0.94 | 0.86 | 0.76 | 0.86 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $91,471,000K ÷ $100,495,000K
= 0.91
Total asset turnover is a key efficiency ratio that measures a company's ability to generate revenues relative to its total assets. A higher total asset turnover indicates that the company is using its assets more efficiently to generate sales.
Based on the data provided for PepsiCo Inc from 2019 to 2023, the total asset turnover ratio has fluctuated over the years. In 2023, the total asset turnover was 0.91, down slightly from 0.94 in 2022, but still higher than the ratios in 2021 (0.86) and 2020 (0.76). The improvement from 2020 to 2022 indicates that PepsiCo managed to enhance its asset utilization efficiency during this period.
However, it is essential to note that the total asset turnover ratio in 2023 is slightly below that of 2022, suggesting a potential decrease in asset utilization efficiency. Further analysis of the company's operations and asset management strategies may be required to understand the reasons behind this change and identify areas for potential improvement. Overall, PepsiCo's total asset turnover ratio has shown varying trends over the years, reflecting fluctuations in its ability to generate sales relative to its total asset base.
Peer comparison
Dec 31, 2023