PepsiCo Inc (PEP)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	37,224,000	—	—	—	37,595,000	—	—	—	35,657,000	—	—	—	36,026,000	—	—	—	40,370,000	—	—	—
Total assets	US$ in thousands	99,467,000	100,513,000	99,533,000	100,040,000	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
Debt-to-assets ratio		0.37	0.00	0.00	0.00	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

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $37,224,000K ÷ $99,467,000K
= 0.37

PepsiCo Inc's debt-to-assets ratio has shown variability over the reported periods. As of December 31, 2020, the ratio was 0.43, indicating that 43% of the company's assets were financed by debt. This suggests a moderate level of leverage. Subsequently, the ratio dropped to 0.39 by December 31, 2021 and remained consistent at this level through December 31, 2022 and December 31, 2023.

Overall, the trend indicates that PepsiCo Inc has maintained a relatively conservative capital structure, with the majority of assets being financed through equity rather than debt. This lower debt-to-assets ratio implies a lower financial risk for the company, as it indicates that PepsiCo has a more stable financial position and may be less vulnerable to fluctuations in interest rates or debt repayments. It also suggests that the company has been able to efficiently manage its debt levels while continuing to grow and invest in its operations.