PepsiCo Inc (PEP)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	100,495,000	92,187,000	92,377,000	92,918,000	78,547,000
Total stockholders’ equity	US$ in thousands	18,503,000	17,149,000	16,043,000	13,454,000	14,786,000
Financial leverage ratio		5.43	5.38	5.76	6.91	5.31

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $100,495,000K ÷ $18,503,000K
= 5.43

The financial leverage ratio of PepsiCo Inc has fluctuated over the past five years.

In 2023, the financial leverage ratio of 5.43 signifies that the company's debt constitutes 5.43 times its equity. This indicates a moderate level of financial leverage as compared to previous years.

In 2022, the financial leverage ratio of 5.38 was slightly lower than in 2023, implying a relatively stable debt-to-equity structure.

In 2021, there was a notable increase in the financial leverage ratio to 5.76, indicating a higher level of debt relative to equity compared to the previous year.

In 2020, the financial leverage ratio spiked to 6.91, representing a significant increase in the company's debt relative to equity, signaling a high level of financial leverage.

In 2019, the financial leverage ratio was 5.31, indicating a lower level of financial leverage in comparison to 2020 but higher than the most recent two years.

Overall, the trend in the financial leverage ratio of PepsiCo Inc shows some fluctuation in the company's debt to equity structure over the past five years, with notable variations in 2020 and 2021. These changes may reflect shifts in the company's capital structure and borrowing practices during this period.