PepsiCo Inc (PEP)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 12,817,000 | 12,483,000 | 12,638,000 | 12,241,000 | 12,155,000 | 11,189,000 | 10,503,000 | 8,865,000 | 11,576,000 | 13,515,000 | 13,406,000 | 14,589,000 | 11,623,000 | 11,604,000 | 11,427,000 | 10,577,000 | 10,142,000 | 9,940,000 | 9,742,000 | 9,477,000 |
| Interest expense (ttm) | US$ in thousands | 919,000 | 872,000 | 854,000 | 821,000 | 819,000 | 875,000 | 864,000 | 899,000 | 939,000 | 1,798,000 | 1,840,000 | 1,845,000 | 1,863,000 | 1,070,000 | 1,102,000 | 1,096,000 | 1,128,000 | 1,073,000 | 1,033,000 | 1,065,000 |
| Interest coverage | 13.95 | 14.32 | 14.80 | 14.91 | 14.84 | 12.79 | 12.16 | 9.86 | 12.33 | 7.52 | 7.29 | 7.91 | 6.24 | 10.84 | 10.37 | 9.65 | 8.99 | 9.26 | 9.43 | 8.90 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $12,817,000K ÷ $919,000K
= 13.95
The interest coverage ratio of PepsiCo Inc has shown fluctuations over the past few periods based on the provided data. The ratio indicates the company's ability to pay its interest obligations on outstanding debt. A higher interest coverage ratio reflects a stronger ability to meet interest payments.
From March 2021 to September 2021, PepsiCo's interest coverage ratio steadily increased from 9.65 to 10.84, indicating an improving ability to cover interest expenses. However, by December 2021, the ratio dropped to 6.24, signaling a potential decrease in the company's ability to cover interest payments.
In the subsequent periods, the interest coverage ratio improved significantly, reaching a peak of 14.91 in March 2024. This suggests that PepsiCo's ability to cover interest expenses improved substantially during this period.
Overall, the trend in PepsiCo's interest coverage ratio shows some variability, with periods of improvement and decline. Investors and analysts should continue to monitor this ratio to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2024