PepsiCo Inc (PEP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.82 | 0.89 | 0.83 | 0.86 | 0.85 | 0.88 | 0.84 | 0.87 | 0.80 | 0.92 | 0.83 | 0.87 | 0.83 | 0.95 | 0.91 | 0.93 | 0.98 | 0.93 | 0.97 | 1.10 |
| Quick ratio | 0.62 | 0.66 | 0.60 | 0.64 | 0.66 | 0.68 | 0.60 | 0.61 | 0.58 | 0.26 | 0.21 | 0.27 | 0.56 | 0.27 | 0.24 | 0.29 | 0.77 | 0.37 | 0.38 | 0.51 |
| 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 |
PepsiCo Inc's current ratio fluctuated over the analyzed period, with values ranging between 0.80 and 1.10. The current ratio indicates that the company may have had difficulty covering its short-term obligations with its current assets during certain quarters.
The quick ratio showed a similar trend, varying from 0.21 to 0.68 during the same period. This ratio suggests that PepsiCo may have had challenges meeting its short-term liabilities with its most liquid assets.
The cash ratio, a more stringent liquidity measure, also displayed fluctuations from 0.20 to 0.51. This ratio shows the company's ability to cover its current liabilities solely with cash and cash equivalents, indicating that PepsiCo might have faced some liquidity pressure in certain quarters.
Overall, the liquidity ratios of PepsiCo demonstrate some inconsistencies in short-term liquidity management across the analyzed period, highlighting the importance of closely monitoring the company's ability to meet its immediate financial obligations.
See also:
Additional liquidity measure
| 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 conversion cycle | days | -8.70 | 97.45 | 98.59 | 91.69 | -11.76 | 95.01 | 98.47 | 93.96 | -6.63 | 46.63 | 50.29 | 45.94 | -14.15 | 45.03 | 53.53 | 51.42 | -10.14 | 49.13 | 52.04 | 45.54 |
The cash conversion cycle of PepsiCo Inc has fluctuated over the specified time period, with the number of days it takes for the company to convert its investments in inventory and other resources back into cash varying significantly.
Starting on March 21, 2020, the cash conversion cycle was at 45.54 days, indicating a relatively efficient cycle. However, the cycle extended over the next few quarters, reaching a peak of 98.59 days on June 15, 2024. This suggests a slowdown in the company's ability to efficiently manage its working capital and convert its resources into cash.
Interestingly, there were certain periods, such as December 31, 2020, December 31, 2021, December 31, 2022, and December 31, 2023, where the cash conversion cycle was negative. A negative cash conversion cycle can imply that the company is able to collect cash from customers before paying its suppliers, resulting in a potentially advantageous position in managing working capital.
Overall, PepsiCo Inc should aim to closely monitor and potentially improve its cash conversion cycle to ensure optimal working capital management and cash flow efficiency over time.