PepsiCo Inc (PEP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 99,467,000 | 100,495,000 | 92,187,000 | 92,377,000 | 92,918,000 |
| Total stockholders’ equity | US$ in thousands | 18,041,000 | 18,503,000 | 17,149,000 | 16,043,000 | 13,454,000 |
| Financial leverage ratio | 5.51 | 5.43 | 5.38 | 5.76 | 6.91 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $99,467,000K ÷ $18,041,000K
= 5.51
The financial leverage ratio of PepsiCo Inc has shown a downward trend over the past five years, decreasing from 6.91 in December 31, 2020, to 5.51 in December 31, 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower level of financial risk and greater financial stability for the company. The decreasing trend in the financial leverage ratio reflects a more conservative capital structure and a potentially healthier balance sheet for PepsiCo Inc.
Peer comparison
Dec 31, 2024