PepsiCo Inc (PEP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,711,000 | 4,954,000 | 5,596,000 | 8,185,000 | 5,509,000 |
| Short-term investments | US$ in thousands | 292,000 | 394,000 | 392,000 | 1,366,000 | 229,000 |
| Total current liabilities | US$ in thousands | 31,647,000 | 26,785,000 | 26,220,000 | 23,372,000 | 20,461,000 |
| Cash ratio | 0.32 | 0.20 | 0.23 | 0.41 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,711,000K
+ $292,000K)
÷ $31,647,000K
= 0.32
The cash ratio of PepsiCo Inc has fluctuated over the past five years. In 2023, the cash ratio stands at 0.32, which indicates that the company has $0.32 of cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to 2022 and 2021 when the cash ratios were 0.20 and 0.23, respectively.
The significant increase in the cash ratio from 2022 to 2023 suggests an enhancement in PepsiCo's ability to cover its short-term obligations with its readily available cash resources. However, the current cash ratio of 0.32 is below the level of 0.41 seen in 2020, indicating that the company had higher liquidity in the past.
Overall, while the cash ratio has varied in recent years, PepsiCo Inc maintains a reasonable level of liquidity to meet its short-term liabilities with cash and cash equivalents. Investors and stakeholders may monitor future changes in the cash ratio to assess the company's liquidity position.
Peer comparison
Dec 31, 2023