PepsiCo Inc (PEP)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	37,595,000	35,657,000	36,026,000	40,370,000	29,148,000
Total stockholders’ equity	US$ in thousands	18,503,000	17,149,000	16,043,000	13,454,000	14,786,000
Debt-to-capital ratio		0.67	0.68	0.69	0.75	0.66

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $37,595,000K ÷ ($37,595,000K + $18,503,000K)
= 0.67

The debt-to-capital ratio of PepsiCo Inc has exhibited fluctuations over the past five years. In 2023, the ratio decreased slightly to 0.67 from 0.68 in 2022, indicating that the company relied less on debt to finance its operations compared to the prior year. This suggests a favorable trend towards a lower debt burden relative to the company's total capital structure.

Comparing to 2021 and 2020, where the ratios were 0.69 and 0.75 respectively, the recent decrease in the debt-to-capital ratio signals improved financial health and potentially more efficient capital management by PepsiCo. However, it is worth noting that in 2019, the ratio was lower at 0.66, implying that the company had a relatively lower proportion of debt in its capital structure in that year.

Overall, the trend of decreasing debt-to-capital ratios from 2020 to 2023 reflects a positive trajectory towards a more balanced and sustainable capital structure for PepsiCo Inc.