Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
PepsiCo Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | PepsiCo Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | PepsiCo Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | PepsiCo Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | PepsiCo Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | PepsiCo Inc. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | PepsiCo Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Inventory Turnover
PepsiCo Inc., inventory turnover calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 41,881) | 40,576) | 37,075) | 31,797) | 30,132) | |
| Inventories | 5,334) | 5,222) | 4,347) | 4,172) | 3,338) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 7.85 | 7.77 | 8.53 | 7.62 | 9.03 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Altria Group Inc. | 5.12 | 5.46 | 5.96 | 3.98 | 3.09 | |
| Coca-Cola Co. | 4.19 | 4.25 | 4.50 | 4.11 | 4.33 | |
| Philip Morris International Inc. | 1.20 | 1.15 | 1.15 | 1.00 | 1.14 | |
| Inventory Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.66 | 3.72 | 3.94 | 3.30 | 3.42 | |
| Inventory Turnover, Industry | ||||||
| Consumer Staples | 7.62 | 7.10 | 8.17 | 7.68 | 7.56 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 41,881 ÷ 5,334 = 7.85
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | PepsiCo Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Receivables Turnover
PepsiCo Inc., receivables turnover calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 91,471) | 86,392) | 79,474) | 70,372) | 67,161) | |
| Accounts and notes receivable, net | 10,815) | 10,163) | 8,680) | 8,404) | 7,822) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 8.46 | 8.50 | 9.16 | 8.37 | 8.59 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 344.83 | 522.83 | 553.47 | 190.90 | 165.20 | |
| Coca-Cola Co. | 13.42 | 12.33 | 11.01 | 10.50 | 9.38 | |
| Philip Morris International Inc. | 10.16 | 8.25 | 10.06 | 9.88 | 9.68 | |
| Receivables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 11.09 | 10.61 | 11.43 | 10.85 | 10.61 | |
| Receivables Turnover, Industry | ||||||
| Consumer Staples | 35.54 | 34.12 | 37.58 | 36.51 | 33.81 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Receivables turnover = Net revenue ÷ Accounts and notes receivable, net
= 91,471 ÷ 10,815 = 8.46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | PepsiCo Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
PepsiCo Inc., payables turnover calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 41,881) | 40,576) | 37,075) | 31,797) | 30,132) | |
| Accounts payable | 11,635) | 10,732) | 9,834) | 8,853) | 8,013) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.60 | 3.78 | 3.77 | 3.59 | 3.76 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 10.68 | 11.67 | 15.86 | 20.57 | 21.80 | |
| Coca-Cola Co. | 3.31 | 3.39 | 3.34 | 3.82 | 3.84 | |
| Philip Morris International Inc. | 3.11 | 2.80 | 3.01 | 3.44 | 4.57 | |
| Payables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.62 | 3.70 | 3.82 | 4.03 | 4.32 | |
| Payables Turnover, Industry | ||||||
| Consumer Staples | 7.26 | 6.62 | 6.93 | 7.02 | 7.10 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 41,881 ÷ 11,635 = 3.60
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | PepsiCo Inc. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Working Capital Turnover
PepsiCo Inc., working capital turnover calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 26,950) | 21,539) | 21,783) | 23,001) | 17,645) | |
| Less: Current liabilities | 31,647) | 26,785) | 26,220) | 23,372) | 20,461) | |
| Working capital | (4,697) | (5,246) | (4,437) | (371) | (2,816) | |
| Net revenue | 91,471) | 86,392) | 79,474) | 70,372) | 67,161) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Coca-Cola Co. | 14.47 | 15.00 | 14.90 | 7.12 | — | |
| Philip Morris International Inc. | — | — | — | 15.29 | 17.73 | |
| Working Capital Turnover, Sector | ||||||
| Food, Beverage & Tobacco | — | — | — | 37.68 | — | |
| Working Capital Turnover, Industry | ||||||
| Consumer Staples | — | — | — | — | — | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Working capital turnover = Net revenue ÷ Working capital
= 91,471 ÷ -4,697 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
PepsiCo Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 7.85 | 7.77 | 8.53 | 7.62 | 9.03 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 46 | 47 | 43 | 48 | 40 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Altria Group Inc. | 71 | 67 | 61 | 92 | 118 | |
| Coca-Cola Co. | 87 | 86 | 81 | 89 | 84 | |
| Philip Morris International Inc. | 305 | 316 | 317 | 366 | 321 | |
| Average Inventory Processing Period, Sector | ||||||
| Food, Beverage & Tobacco | 100 | 98 | 93 | 111 | 107 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Staples | 48 | 51 | 45 | 48 | 48 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 7.85 = 46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | PepsiCo Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Average Receivable Collection Period
PepsiCo Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 8.46 | 8.50 | 9.16 | 8.37 | 8.59 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 43 | 43 | 40 | 44 | 43 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Altria Group Inc. | 1 | 1 | 1 | 2 | 2 | |
| Coca-Cola Co. | 27 | 30 | 33 | 35 | 39 | |
| Philip Morris International Inc. | 36 | 44 | 36 | 37 | 38 | |
| Average Receivable Collection Period, Sector | ||||||
| Food, Beverage & Tobacco | 33 | 34 | 32 | 34 | 34 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Staples | 10 | 11 | 10 | 10 | 11 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.46 = 43
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
PepsiCo Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 46 | 47 | 43 | 48 | 40 | |
| Average receivable collection period | 43 | 43 | 40 | 44 | 43 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 89 | 90 | 83 | 92 | 83 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Altria Group Inc. | 72 | 68 | 62 | 94 | 120 | |
| Coca-Cola Co. | 114 | 116 | 114 | 124 | 123 | |
| Philip Morris International Inc. | 341 | 360 | 353 | 403 | 359 | |
| Operating Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 133 | 132 | 125 | 145 | 141 | |
| Operating Cycle, Industry | ||||||
| Consumer Staples | 58 | 62 | 55 | 58 | 59 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 46 + 43 = 89
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | PepsiCo Inc. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Average Payables Payment Period
PepsiCo Inc., average payables payment period calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.60 | 3.78 | 3.77 | 3.59 | 3.76 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 101 | 97 | 97 | 102 | 97 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Altria Group Inc. | 34 | 31 | 23 | 18 | 17 | |
| Coca-Cola Co. | 110 | 108 | 109 | 96 | 95 | |
| Philip Morris International Inc. | 117 | 130 | 121 | 106 | 80 | |
| Average Payables Payment Period, Sector | ||||||
| Food, Beverage & Tobacco | 101 | 99 | 96 | 91 | 85 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Staples | 50 | 55 | 53 | 52 | 51 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.60 = 101
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
PepsiCo Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 46 | 47 | 43 | 48 | 40 | |
| Average receivable collection period | 43 | 43 | 40 | 44 | 43 | |
| Average payables payment period | 101 | 97 | 97 | 102 | 97 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -12 | -7 | -14 | -10 | -14 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Altria Group Inc. | 38 | 37 | 39 | 76 | 103 | |
| Coca-Cola Co. | 4 | 8 | 5 | 28 | 28 | |
| Philip Morris International Inc. | 224 | 230 | 232 | 297 | 279 | |
| Cash Conversion Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 32 | 33 | 29 | 54 | 56 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Staples | 8 | 7 | 2 | 6 | 8 | |
Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 46 + 43 – 101 = -12
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | PepsiCo Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |