PepsiCo Inc (PEP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,505,000 | 9,711,000 | 4,954,000 | 5,596,000 | 8,185,000 |
| Short-term investments | US$ in thousands | 761,000 | 292,000 | 394,000 | 392,000 | 1,366,000 |
| Total current liabilities | US$ in thousands | 31,536,000 | 31,647,000 | 26,785,000 | 26,220,000 | 23,372,000 |
| Cash ratio | 0.29 | 0.32 | 0.20 | 0.23 | 0.41 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,505,000K
+ $761,000K)
÷ $31,536,000K
= 0.29
The cash ratio for PepsiCo Inc has shown fluctuations over the past five years. In December 2020, the cash ratio was 0.41, indicating that the company had $0.41 of cash and cash equivalents for every $1 of current liabilities. However, by December 2021, the cash ratio had decreased to 0.23, suggesting a decline in the company's liquidity position. This downward trend continued in December 2022 when the cash ratio dropped further to 0.20.
Despite the downward trend, there was a slight improvement in December 2023 with the cash ratio increasing to 0.32, indicating a stronger liquidity position compared to the previous year. In December 2024, the cash ratio remained relatively stable at 0.29, suggesting that PepsiCo Inc continues to maintain a reasonable level of cash reserves relative to its current liabilities.
Overall, while there have been fluctuations in the cash ratio over the years, PepsiCo Inc has generally managed to maintain a sufficient level of cash and cash equivalents to meet its short-term obligations. It is important for investors and stakeholders to continue monitoring the company's liquidity position to ensure its financial stability in the future.
Peer comparison
Dec 31, 2024