PepsiCo Inc (PEP)
Debt-to-equity 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-equity ratio | 2.03 | 2.08 | 2.25 | 3.00 | 1.97 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $37,595,000K ÷ $18,503,000K
= 2.03
PepsiCo Inc's debt-to-equity ratio has shown fluctuations over the past five years. As of December 31, 2023, the company's debt-to-equity ratio stood at 2.03, which indicates that for every dollar of equity, PepsiCo has $2.03 in debt.
Comparing this to the previous year, there has been a slight improvement from 2.08 in 2022. However, it is important to note that the ratio has been on a downward trend since 2021 when it was reported at 2.25.
The significant decrease from 3.00 in 2020 to 1.97 in 2019 suggests a decrease in financial leverage and reliance on debt financing to support the company's operations.
Overall, the recent downward trend in PepsiCo's debt-to-equity ratio may indicate a more conservative capital structure, potentially reducing financial risk and improving the company's financial stability.
Peer comparison
Dec 31, 2023