PepsiCo Inc (PEP)
Cash ratio
| Dec 31, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,505,000 | 7,308,000 | 6,353,000 | 8,047,000 | 9,711,000 | 10,017,000 | 6,116,000 | 4,770,000 | 4,954,000 | 6,415,000 | 5,405,000 | 6,561,000 | 5,596,000 | 6,506,000 | 5,449,000 | 5,661,000 | 8,185,000 | 9,094,000 | 8,927,000 | 11,089,000 |
| Short-term investments | US$ in thousands | 761,000 | 743,000 | 315,000 | 303,000 | 292,000 | 266,000 | 338,000 | 434,000 | 394,000 | 327,000 | 287,000 | 343,000 | 392,000 | 344,000 | 328,000 | 964,000 | 1,366,000 | 611,000 | 196,000 | 158,000 |
| Total current liabilities | US$ in thousands | 31,536,000 | 30,315,000 | 31,148,000 | 30,234,000 | 31,647,000 | 32,660,000 | 29,618,000 | 25,837,000 | 26,785,000 | 25,653,000 | 27,223,000 | 25,824,000 | 26,220,000 | 25,077,000 | 23,623,000 | 22,693,000 | 23,372,000 | 26,009,000 | 23,827,000 | 22,078,000 |
| Cash ratio | 0.29 | 0.27 | 0.21 | 0.28 | 0.32 | 0.31 | 0.22 | 0.20 | 0.20 | 0.26 | 0.21 | 0.27 | 0.23 | 0.27 | 0.24 | 0.29 | 0.41 | 0.37 | 0.38 | 0.51 |
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 of PepsiCo Inc has shown some fluctuations over the analyzed period from March 2020 to December 2024. The cash ratio represents the proportion of a company's total cash and cash equivalents to its current liabilities, indicating its ability to cover short-term obligations with cash on hand.
The cash ratio ranged from 0.20 to 0.51 during the period, with the highest value observed in March 2020 and the lowest value in June 2022. The ratio decreased consistently from March 2020 to June 2022, indicating a potential decline in the company's ability to meet its short-term liabilities solely using its available cash.
There was a slight increase in the cash ratio from June 2022 to March 2023, suggesting an improvement in the company's liquidity position during that period. However, the ratio fluctuated around the 0.20 to 0.32 range from March 2023 to December 2024, showing some instability in PepsiCo's cash reserve relative to its short-term obligations.
Overall, a cash ratio below 1 indicates that PepsiCo may not have enough cash on hand to cover its current liabilities fully. Investors and analysts may need to consider other liquidity ratios and additional financial metrics to assess the company's overall financial health and liquidity position effectively.
Peer comparison
Dec 31, 2024