PepsiCo Inc (PEP)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 37,224,000 | 37,595,000 | 35,657,000 | 36,026,000 | 40,370,000 |
| Total stockholders’ equity | US$ in thousands | 18,041,000 | 18,503,000 | 17,149,000 | 16,043,000 | 13,454,000 |
| Debt-to-capital ratio | 0.67 | 0.67 | 0.68 | 0.69 | 0.75 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $37,224,000K ÷ ($37,224,000K + $18,041,000K)
= 0.67
PepsiCo Inc's debt-to-capital ratio has been decreasing steadily over the past five years, declining from 0.75 in December 2020 to 0.67 in December 2024. This ratio indicates that PepsiCo relies on debt to finance 67% of its capital structure, while the remaining 33% is financed through equity. The decreasing trend suggests that the company is becoming less reliant on debt financing, which could be a positive sign as it may reduce financial risk and improve financial stability. Overall, PepsiCo's decreasing debt-to-capital ratio reflects a more balanced capital structure and may indicate effective financial management.
Peer comparison
Dec 31, 2024