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PepsiCo (NAS:PEP) Interest Coverage

: 17.73 (As of Sep. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. PepsiCo's Operating Income for the three months ended in Sep. 2022 was $3,368 Mil. PepsiCo's Interest Expense for the three months ended in Sep. 2022 was $-190 Mil. PepsiCo's interest coverage for the quarter that ended in Sep. 2022 was 17.73. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for PepsiCo's Interest Coverage or its related term are showing as below:

PEP' s Interest Coverage Range Over the Past 10 Years
Min: 5.99   Med: 9.48   Max: 11.01
Current: 6.28


PEP's Interest Coverage is ranked worse than
76% of 75 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 15.99 vs PEP: 6.28

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


PepsiCo Interest Coverage Historical Data

The historical data trend for PepsiCo's Interest Coverage 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.

* Premium members only.

PepsiCo Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.93 8.29 11.01 8.94 5.99

PepsiCo Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.62 2.26 8.10 14.50 17.73

Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, PepsiCo's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Interest Coverage distribution charts can be found below:

* The bar in red indicates where PepsiCo's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.



PepsiCo Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

PepsiCo's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, PepsiCo's Interest Expense was $-1,863 Mil. Its Operating Income was $11,162 Mil. And its Long-Term Debt & Capital Lease Obligation was $36,026 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*11162/-1863
=5.99

PepsiCo's Interest Coverage for the quarter that ended in Sep. 2022 is calculated as

Here, for the three months ended in Sep. 2022, PepsiCo's Interest Expense was $-190 Mil. Its Operating Income was $3,368 Mil. And its Long-Term Debt & Capital Lease Obligation was $36,136 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*3368/-190
=17.73

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


PepsiCo  (NAS:PEP) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


PepsiCo Interest Coverage Related Terms

Thank you for viewing the detailed overview of PepsiCo's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


PepsiCo (NAS:PEP) Business Description

PepsiCo logo
Address
700 Anderson Hill Road, Purchase, NY, USA, 10577
PepsiCo is one of the largest food and beverage companies globally. It makes, markets, and sells a slew of brands across the beverage and snack categories, including Pepsi, Mountain Dew, Gatorade, Doritos, Lays, and Ruffles. The firm uses a largely integrated go-to-market model, though it does leverage third-party bottlers, contract manufacturers, and distributors in certain markets. In addition to company-owned trademarks, Pepsi manufactures and distributes other brands through partnerships and joint ventures with companies such as Starbucks. The firm segments its operations into five primary geographies, with North America (comprising Frito-Lay North America, Quaker Foods North America, and North America beverages) constituting over 60% of consolidated revenue.
Executives
Krishnan Ramkumar officer: CEO Intl Beverages & CCO TRACTOR SUPPLY 5401 VIRGINIA WAY BRENTWOOD TN 37027
Cooper Edith W director C/O ETSY, INC. 117 ADAMS STREET BROOKLYN NY 11249
Flavell David officer: EVP, Gen Counsel & Corp Sec PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Lewis Dave J director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Agbaje Segun director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Schellekens Ronald officer: EVP & Chief HR Officer PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Willemsen Eugene officer: CEO, AMESA PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Santilli Paula officer: CEO, Latin America PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Williams Steven C officer: CEO, PFNA PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Gass Michelle director 2401 UTAH AVE. S., SUITE 800 SEATTLE WA 98134
Yawman David officer: EVP Gov Affairs, GC & Corp Sec PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Spanos Mike officer: Interim head of AMENA PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Fattori Ruth A officer: EVP, HR & Chief HR Officer 1303 EAST ALGONQUIN ROAD SCHAUMBURG IL 60196
Popovici Silviu officer: President, ESSA PEPSICO, INC. 700 ANDERSON HILL ROAD PURCHASE NY 10577
Walker Darren director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577

PepsiCo (NAS:PEP) Headlines

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