PepsiCo Inc. (NASDAQ:PEP)

The liquidity position, as indicated by the observed ratios, exhibits a generally stable pattern over the analyzed period, with some fluctuations. Overall, the company maintains a conservative liquidity profile, consistently demonstrating an ability to meet its short-term obligations, though with limited excess liquidity.

Current Ratio

The current ratio fluctuates within a relatively narrow band, generally ranging from 0.82 to 0.92. A slight downward trend is observable from March 2022 through December 2022, followed by stabilization and minor oscillations. The most recent values, from March 2024 through December 2025, show a similar pattern of fluctuation around the 0.83-0.91 range. This suggests consistent, but not substantial, coverage of current liabilities with current assets.

Quick Ratio

The quick ratio demonstrates a similar pattern to the current ratio, consistently lower, as expected. Values generally range between 0.56 and 0.68. A dip is noted in the first half of 2022, followed by a recovery and subsequent stabilization. The quick ratio shows a slight decline in the first half of 2025, but recovers in the latter half of the year. This indicates a consistent, though limited, ability to meet short-term obligations with the most liquid assets.

Cash Ratio

The cash ratio, representing the most conservative measure of liquidity, remains the lowest of the three ratios analyzed. Values range from 0.20 to 0.32. A gradual increase is observed from March 2022 to September 2023, followed by a slight decline and stabilization. The ratio demonstrates a modest increase in the latter half of 2025. This suggests a limited reliance on cash and cash equivalents to cover immediate liabilities, indicating a preference for utilizing other current assets or managing liabilities effectively.

In summary, the observed liquidity ratios suggest a consistent, albeit conservative, approach to managing short-term financial obligations. While fluctuations exist, they remain within a defined range, indicating a stable liquidity position throughout the analyzed period. The relatively low ratios suggest the company operates efficiently, minimizing the need for substantial liquid assets.

The current ratio exhibits a generally stable, yet fluctuating pattern over the observed period. Throughout the analyzed timeframe, the ratio consistently remains below 1, indicating that current liabilities have generally exceeded current assets. However, the ratio does not demonstrate a significant or sustained directional trend.

Overall Trend

The current ratio fluctuates within a relatively narrow band, ranging from approximately 0.78 to 0.92. This suggests a consistent, though somewhat precarious, liquidity position. There is no clear upward or downward trend over the entire period.

Short-Term Fluctuations (2022-2023)

From March 2022 to December 2022, the current ratio decreased from 0.87 to 0.80, suggesting a slight weakening in the company’s short-term liquidity. A modest recovery followed in early 2023, reaching 0.87 in March, but then declined to 0.78 by June 2023, representing the lowest point in the observed period.

Mid-Term Variations (2023-2024)

The ratio experienced an increase to 0.91 in September 2023, followed by a decrease to 0.85 by December 2023. This pattern continued into 2024, with the ratio fluctuating between 0.83 and 0.89. These variations suggest responsiveness to changes in short-term asset and liability levels.

Recent Performance (2024-2025)

The current ratio remained relatively stable in the latter part of 2024 and the first half of 2025, oscillating between 0.82 and 0.91. The most recent observation, in June 2025, shows a ratio of 0.78, indicating a potential slight weakening in the short-term liquidity position compared to the prior quarter.

The consistent values below 1 suggest the entity relies on factors beyond immediately liquid assets to meet its short-term obligations. While not necessarily indicative of immediate financial distress, continued monitoring of this ratio is warranted, alongside analysis of the underlying components of current assets and current liabilities.

The quick ratio for the analyzed period demonstrates fluctuations, generally remaining within a relatively narrow range. An initial decline is observed from March 2022 to June 2022, followed by periods of improvement and subsequent stabilization. Overall, the company maintains a quick ratio generally above 0.5, indicating a reasonable ability to meet short-term obligations with its most liquid assets.

Initial Period (Mar 19, 2022 – Dec 31, 2022)

The quick ratio begins at 0.63 in March 2022, decreases to 0.59 in June 2022, then recovers to 0.68 in September 2022. A slight decrease is then noted in December 2022, settling at 0.58. This period suggests some volatility, potentially linked to seasonal fluctuations in current liabilities or quick asset composition.

Stabilization and Increase (Mar 25, 2023 – Sep 9, 2023)

From March 2023 through September 2023, the quick ratio exhibits relative stability, fluctuating between 0.60 and 0.68. A peak of 0.68 is reached in September 2023, indicating a strengthening of the company’s short-term liquidity position during this timeframe. This improvement coincides with a notable increase in total quick assets.

Recent Trends (Dec 30, 2023 – Dec 27, 2025)

The ratio decreases to 0.66 in December 2023, then remains relatively stable through March 2025, fluctuating between 0.56 and 0.64. A slight increase to 0.68 is observed in September 2025, followed by a decrease to 0.64 in December 2025. This recent period suggests a potential stabilization at a slightly lower level compared to the peak observed in September 2023. The increase in current liabilities appears to be a contributing factor to this recent trend.

Throughout the analyzed period, the quick ratio has not fallen below 0.56, suggesting the company consistently possesses a moderate capacity to cover its immediate liabilities with readily available assets. However, the fluctuations warrant continued monitoring to identify potential underlying causes and ensure sustained liquidity.

The cash ratio for the analyzed period demonstrates fluctuations, generally remaining within a range of 0.20 to 0.32. An initial decline is observed from the first quarter of 2022 to the fourth, followed by a period of relative stability and then an increase towards the end of 2023. This pattern continues into 2025, with some variability.

Overall Trend

The cash ratio exhibits a generally stable, albeit fluctuating, trend over the observed timeframe. While there isn't a consistent upward or downward trajectory, the ratio generally remains above 0.20, suggesting a reasonable capacity to meet current obligations with immediately available cash.

Initial Decline (Mar 19, 2022 – Dec 31, 2022)

A decrease in the cash ratio is evident from 0.27 in March 2022 to 0.20 in December 2022. This decline coincides with a rise in current liabilities during this period, while total cash assets experienced a decrease as well. This suggests a potential strain on immediate liquidity during this timeframe.

Improvement and Stability (Mar 25, 2023 – Dec 30, 2023)

From the first quarter of 2023 through the end of the year, the cash ratio shows improvement, peaking at 0.32 in September 2023. This is attributable to a significant increase in total cash assets, particularly in the third quarter, outpacing the growth in current liabilities. The ratio remains relatively stable throughout this period.

Recent Fluctuations (Mar 23, 2024 – Dec 27, 2025)

The most recent period demonstrates continued variability. The cash ratio fluctuates between 0.21 and 0.29. While current liabilities generally increased, total cash assets also experienced changes, resulting in the observed fluctuations. The ratio concludes the period at 0.29, similar to levels seen in late 2023.

In summary, the cash ratio indicates a generally adequate, though not exceptionally strong, short-term liquidity position. The observed fluctuations warrant continued monitoring, particularly in relation to changes in both cash assets and current liabilities.