PepsiCo Inc (PEP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.00 | 0.00 | 0.00 | 0.39 | 0.00 | 0.00 | 0.00 | 0.39 | 0.00 | 0.00 | 0.00 | 0.43 | 0.00 | 0.00 | 0.00 | 0.37 | 0.00 | 0.00 | 0.36 |
| Debt-to-capital ratio | 0.67 | 0.00 | 0.00 | 0.00 | 0.68 | 0.00 | 0.00 | 0.00 | 0.69 | 0.00 | 0.00 | 0.00 | 0.75 | 0.00 | 0.00 | 0.00 | 0.66 | 0.00 | 0.00 | 0.66 |
| 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 |
| Financial leverage ratio | 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 | 5.31 | 5.48 | 5.31 | 5.35 |
PepsiCo Inc's solvency ratios, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, show the company's ability to meet its financial obligations and the extent of its leverage.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. PepsiCo's debt-to-assets ratio has shown consistency over the periods, ranging from 0.00 to 0.43. This indicates that, on average, around 0-43% of the company's assets are financed by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the extent to which debt is used to finance the company's operations compared to equity. PepsiCo's debt-to-capital ratio has varied from 0.00 to 0.75 over the periods, showing fluctuations in the degree of debt utilization in its capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio represents the company's leverage by comparing its total liabilities to shareholders' equity. PepsiCo's debt-to-equity ratio has ranged from 0.00 to 3.00, indicating that the company's debt level relative to equity has been inconsistent and relatively high in certain periods.
4. Financial leverage ratio: This ratio measures the company's use of debt to finance its operations and assets. PepsiCo's financial leverage ratio has fluctuated between 4.98 and 7.17, highlighting variations in the company's overall leverage across the periods analyzed.
Overall, the solvency ratios suggest that PepsiCo has maintained a moderate level of debt relative to its assets, capital, and equity. However, fluctuations in the ratios indicate changes in the company's leverage and financial risk over time, which may warrant further analysis to understand the factors driving these variations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 8.92 | 9.24 | 8.85 | 8.50 |
PepsiCo Inc's interest coverage ratio has exhibited fluctuating trends over the period covered. The interest coverage ratio measures the company's ability to pay interest expenses on its debt obligations from its operating income.
From December 2018 to December 2019, the interest coverage ratio ranged from 8.50 to 9.24, showing relatively stable performance. However, a decline was observed in March 2020 as the ratio dropped to 8.90, likely due to external factors impacting profitability or increased debt servicing costs.
Subsequently, there was a notable improvement in interest coverage, with the ratio peaking at 12.33 by December 2022, indicating a stronger ability to cover interest expenses comfortably. However, this improvement was followed by some volatility in the ratios throughout 2023, ranging from 9.86 to 14.84.
Overall, PepsiCo Inc's interest coverage ratio has shown resilience and generally indicates a healthy ability to meet its interest obligations. It is essential for investors and stakeholders to continue monitoring this metric to assess the company's financial stability and debt repayment capacity.