PepsiCoXSWX:PEP 90 Current Ratio is 0.90 as of Mar. 2026, which is 2% below its 10-year median of 0.92. GuruFocus rates XSWX:PEP with a GF Score™ of 90/100 and a GF Value™ of CHF139.75. The stock has 2 warning signs investors should review. Among 118 Beverages - Non-Alcoholic companies, PepsiCo ranks worse than 85.59% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. PepsiCo's current ratio for the quarter that ended in Mar. 2026 was 0.90.
PepsiCo has a current ratio of 0.90. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If PepsiCo has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for PepsiCo's Current Ratio or its related term are showing as below:
XSWX:PEP'
s Current Ratio Range Over the Past 10 Years
Min: 0.78 Med: 0.92 Max: 1.51
Current: 0.9
During the past 13 years, PepsiCo's highest Current Ratio was 1.51. The lowest was 0.78. And the median was 0.92.
XSWX:PEP's Current Ratio is ranked worse than 85.59% of 118
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 1.785
vs XSWX:PEP: 0.90
PepsiCo (XSWX:PEP) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
PepsiCo Current Ratio Related Terms
PepsiCo Current Ratio Historical Data
* Premium members only.
The historical data trend for PepsiCo's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:PEP vs MNST, KO, KDP: Current Ratio Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PepsiCo Current Ratio vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Current Ratio distribution charts can be found below:
* The bar in red indicates where PepsiCo's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PepsiCo (XSWX:PEP) has a Current Ratio of 0.90 as of Mar. 2026. This is near median its historical median of 0.92. Over the past decade, PepsiCo's Current Ratio has ranged from 0.78 to 1.51. According to the industry distribution chart, PepsiCo ranks #101 out of 118 companies in the Beverages - Non-Alcoholic industry, placing it in the top 85.6%.
Is PepsiCo's Current Ratio too high?
PepsiCo's current Current Ratio of 0.90 is near median its 10-year median of 0.92. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 1.51. The Beverages - Non-Alcoholic industry median Current Ratio is 1.79. PepsiCo's value of 0.90 is 49.6% below this industry median. Based on the distribution chart, PepsiCo ranks #101 out of 118 companies in the Beverages - Non-Alcoholic industry, which is in the bottom quartile relative to peers. Overall, PepsiCo has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Current Ratio compare to MNST and KO?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #101 out of 118 companies for Current Ratio. This places PepsiCo in the lower half of its industry. The industry median Current Ratio is 1.79. PepsiCo's value of 0.90 is 49.6% below this benchmark. Historically, PepsiCo's own Current Ratio has ranged from 0.78 to 1.51 over the past decade. While the company's 10-year median is 0.92 vs. the industry median of 1.79, PepsiCo has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Beverages - Non-Alcoholic company?
The median Current Ratio among Beverages - Non-Alcoholic companies is 1.79, based on 118 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current Current Ratio of 0.90 is 49.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Beverages - Non-Alcoholic industry, the median Current Ratio is 1.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current Current Ratio is 0.90, which is near median its own 10-year median of 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PepsiCo stock overvalued right now?
PepsiCo (XSWX:PEP) has a current Current Ratio of 0.90. The stock's GF Value™ is CHF139.75, compared to a current price of CHF115.00 — trading 17.7% below its estimated fair value. The current Current Ratio is 0.90, which is near median its 10-year median of 0.92 and 49.6% below the Beverages - Non-Alcoholic industry median of 1.79. PepsiCo's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current Current Ratio is 0.90 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PepsiCo (XSWX:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of CHF115.00 is trading 17.7% below its estimated GF Value™ of CHF139.75.
Key valuation signals for XSWX:PEP:
Current Ratio: 0.90 (near median its 10-year median of 0.92)
GF Value™: CHF139.75 vs. price of CHF115.00 (17.7% below fair value)
Industry Position: 49.6% below the Beverages - Non-Alcoholic median (#101 of 118)
No single metric tells the full story. See the XSWX:PEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 58% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US, but uses bottlers overseas for beverages. International markets made up 41% of total sales and 46% of operating profits before corporate expenses in 2025.
90GF Score
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