PepsiCo Inc (PEP)

Debt-to-equity ratio

		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	Dec 31, 2019	Sep 7, 2019	Mar 23, 2019	Dec 31, 2018
Long-term debt	US$ in thousands	37,595,000	—	—	—	35,657,000	—	—	—	36,026,000	—	—	—	40,370,000	—	—	—	29,148,000	—	—	28,295,000
Total stockholders’ equity	US$ in thousands	18,503,000	18,806,000	17,685,000	17,042,000	17,149,000	18,977,000	18,553,000	18,202,000	16,043,000	15,872,000	15,299,000	13,947,000	13,454,000	13,483,000	12,491,000	13,465,000	14,786,000	14,129,000	14,202,000	14,518,000
Debt-to-equity ratio		2.03	0.00	0.00	0.00	2.08	0.00	0.00	0.00	2.25	0.00	0.00	0.00	3.00	0.00	0.00	0.00	1.97	0.00	0.00	1.95

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $37,595,000K ÷ $18,503,000K
= 2.03

The debt-to-equity ratio of PepsiCo Inc has exhibited fluctuations over the period from Dec 31, 2018 to Dec 31, 2023.

In Dec 31, 2018 and Mar 21, 2020, the debt-to-equity ratio was relatively stable at around 1.95 and 1.97 respectively. This suggests a balanced mix of debt and equity in the company's capital structure during these periods.

However, a notable increase in the debt-to-equity ratio was observed on Dec 31, 2020 and Mar 20, 2021, reaching 3.00 and indicating a higher level of debt compared to equity. This spike in the ratio may raise concerns about the company's leverage and financial risk.

Subsequently, the ratio decreased drastically in the following quarters, including Sep 5, 2020, Jun 13, 2021, and Sep 4, 2021, where the debt-to-equity ratio dropped to 0.00. This suggests a significant decrease in debt relative to equity, potentially reflecting deleveraging efforts or increased equity financing.

The debt-to-equity ratio surged again to 2.25 on Dec 31, 2021, which was followed by another increase to 2.08 on Dec 31, 2022. These figures indicate a higher reliance on debt compared to equity in the respective periods.

Most recently, on Dec 31, 2023, the debt-to-equity ratio stood at 2.03, demonstrating a moderate decrease from the previous year but still indicating a significant proportion of debt in the company's capital structure.

Overall, the fluctuating trend in PepsiCo Inc's debt-to-equity ratio highlights the varying levels of leverage and capital structure composition over the analyzed period. Investors and stakeholders may closely monitor these changes to assess the company's financial health and risk profile.