PepsiCo Inc (PEP)
Debt-to-equity 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-equity ratio | 2.06 | 2.03 | 2.08 | 2.25 | 3.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $37,224,000K ÷ $18,041,000K
= 2.06
The debt-to-equity ratio for PepsiCo Inc has shown a declining trend over the past five years. Starting at 3.00 in December 31, 2020, it has consistently decreased to 2.25 in 2021, 2.08 in 2022, 2.03 in 2023, and 2.06 in 2024. This indicates that the company has been gradually reducing its reliance on debt financing in relation to its equity. A lower debt-to-equity ratio suggests that PepsiCo has been successfully managing its debt levels, which could lead to improved financial stability and lower financial risk. It is important to monitor this ratio in conjunction with other financial metrics to assess the overall financial health and risk profile of the company.
Peer comparison
Dec 31, 2024