PepsiCo Inc (PEP)

Debt-to-assets 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
Long-term debt	US$ in thousands	37,595,000	—	—	—	35,657,000	—	—	—	36,026,000	—	—	—	40,370,000	—	—	—	29,148,000	—	—	28,295,000
Total assets	US$ in thousands	100,495,000	99,953,000	95,906,000	93,042,000	92,187,000	94,461,000	93,103,000	92,962,000	92,377,000	93,254,000	92,385,000	91,224,000	92,918,000	92,041,000	89,525,000	85,062,000	78,547,000	77,444,000	75,466,000	77,648,000
Debt-to-assets ratio		0.37	0.00	0.00	0.00	0.39	0.00	0.00	0.00	0.39	0.00	0.00	0.00	0.43	0.00	0.00	0.00	0.37	0.00	0.00	0.36

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $37,595,000K ÷ $100,495,000K
= 0.37

The debt-to-assets ratio for PepsiCo Inc has fluctuated over the past few years based on the provided data. In general, a lower debt-to-assets ratio indicates that the company relies less on debt financing and has a stronger financial position.

Looking at the data, we can see that in some quarters, such as March 2020, June 2020, and September 2020, the debt-to-assets ratio was reported as 0.00, suggesting that the company had no debt on its balance sheet during those periods. This could have been due to various factors, such as paying off existing debt or restructuring the company's capital structure.

On the other hand, the ratio increased to 0.43 in March 2021 and 0.39 in December 2021, indicating a higher proportion of debt relative to assets during those periods. This increase could signal that the company took on more debt to finance its operations or investments during those quarters.

Overall, it is important to further investigate the reasons behind the fluctuations in PepsiCo's debt-to-assets ratio to gain a better understanding of the company's financial strategy and risk management approach.