PepsiCo Inc (PEP)
Quick ratio
| 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 | Dec 31, 2019 | Sep 7, 2019 | Mar 23, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 5,509,000 | 5,494,000 | 5,072,000 | 8,721,000 |
| Short-term investments | US$ in thousands | 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 | 229,000 | 287,000 | 289,000 | 272,000 |
| Receivables | US$ in thousands | 10,815,000 | 11,782,000 | 11,456,000 | 10,469,000 | 10,163,000 | — | — | — | 8,680,000 | — | — | — | 8,404,000 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 20,461,000 | 20,131,000 | 19,090,000 | 22,138,000 |
| Quick ratio | 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 | 0.28 | 0.29 | 0.28 | 0.41 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,711,000K
+ $292,000K
+ $10,815,000K)
÷ $31,647,000K
= 0.66
The quick ratio for PepsiCo Inc has fluctuated over the past few years, ranging from a low of 0.21 to a high of 0.77. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities without selling inventory or receiving payments from its customers.
Analyzing the trend, we observe that the quick ratio has shown some volatility, with periods of improvement followed by declines. For example, the quick ratio decreased from 0.77 in December 2020 to 0.28 in September 2021 before rising again to 0.66 in December 2023. The quick ratio has generally hovered around the 0.5 to 0.7 range in recent years.
Overall, while the quick ratio indicates that PepsiCo Inc may have had some challenges in meeting its short-term obligations in certain periods, the company has also shown the ability to improve its liquidity position at times. Investors and analysts should continue to monitor the quick ratio in conjunction with other financial metrics to assess PepsiCo's overall financial health and liquidity position.
Peer comparison
Dec 31, 2023