PepsiCo Inc (PEP)

Financial leverage ratio

		Dec 31, 2024	Sep 7, 2024	Jun 15, 2024	Mar 23, 2024	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
Total assets	US$ in thousands	99,467,000	100,513,000	99,533,000	100,040,000	100,495,000	99,953,000	95,906,000	93,042,000	92,187,000	94,461,000	93,103,000	92,962,000	92,377,000	93,254,000	92,385,000	91,224,000	92,918,000	92,041,000	89,525,000	85,062,000
Total stockholders’ equity	US$ in thousands	18,041,000	19,453,000	19,446,000	19,047,000	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
Financial leverage ratio		5.51	5.17	5.12	5.25	5.43	5.31	5.42	5.46	5.38	4.98	5.02	5.11	5.76	5.88	6.04	6.54	6.91	6.83	7.17	6.32

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 exhibited some fluctuations over the specified periods. The ratio ranged from a high of 7.17 in June 13, 2020 to a low of 4.98 in September 3, 2022, showcasing variability in the company's leverage levels. Overall, the trend has been generally downward, indicating a decreasing reliance on debt funding over time. This suggests that PepsiCo Inc has been managing its financial leverage effectively, potentially reducing its risk exposure and enhancing financial stability. However, it's worth noting that the ratio experienced a slight increase towards the end of the data series, reaching 5.51 by December 31, 2024, which could indicate a strategic shift in the company's financing decisions.