PepsiCo Inc (PEP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 26,950,000 | 21,539,000 | 21,783,000 | 23,001,000 | 17,645,000 |
| Total current liabilities | US$ in thousands | 31,647,000 | 26,785,000 | 26,220,000 | 23,372,000 | 20,461,000 |
| Current ratio | 0.85 | 0.80 | 0.83 | 0.98 | 0.86 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $26,950,000K ÷ $31,647,000K
= 0.85
The current ratio of PepsiCo Inc has fluctuated over the past five years, ranging from 0.80 to 0.98. A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. In this case, PepsiCo's current ratio has consistently been below 1, suggesting potential liquidity challenges in the short term.
The declining trend in the current ratio from 2020 to 2022 may raise concerns about the company's ability to cover its short-term liabilities. However, there was a slight improvement in 2023 compared to the previous year.
It is important for investors and stakeholders to closely monitor PepsiCo's liquidity position in relation to its current liabilities to assess the company's financial health and ability to meet its obligations in the near future.
Peer comparison
Dec 31, 2023