PepsiCo Inc (PEP)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	25,826,000	26,950,000	21,539,000	21,783,000	23,001,000
Total current liabilities	US$ in thousands	31,536,000	31,647,000	26,785,000	26,220,000	23,372,000
Current ratio		0.82	0.85	0.80	0.83	0.98

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $25,826,000K ÷ $31,536,000K
= 0.82

PepsiCo Inc's current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has exhibited a declining trend over the past few years. As of December 31, 2020, the current ratio stood at 0.98, indicating that the company had almost enough current assets to cover its short-term obligations. However, by December 31, 2021, the ratio had decreased to 0.83, suggesting a potential strain on the company's liquidity position. This downward trend continued into 2022, with the current ratio falling to 0.80, indicating a further deterioration in the company's ability to meet its short-term obligations.

Although there was a slight improvement in the current ratio by December 31, 2023, where it increased to 0.85, the ratio remained below 1, signaling a potential liquidity challenge for PepsiCo Inc. By December 31, 2024, the current ratio decreased again to 0.82, indicating that the company may continue to face difficulties in covering its short-term liabilities with its current assets.

Overall, PepsiCo Inc's current ratio has been declining over the years, raising concerns about the company's short-term liquidity position and its ability to meet its immediate financial obligations. Further analysis of the company's current assets and liabilities is recommended to understand the factors contributing to this trend and to assess the company's overall financial health accurately.