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PepsiCo Financial Strength

: 5 (As of Jun. 2022)
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PepsiCo has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

PepsiCo's Interest Coverage for the quarter that ended in Jun. 2022 was 14.50. PepsiCo's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.49. As of today, PepsiCo's Altman Z-Score is 4.32.


Competitive Comparison

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

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

* The bar in red indicates where PepsiCo's Financial Strength falls into.



PepsiCo Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

PepsiCo's Interest Expense for the months ended in Jun. 2022 was $-236 Mil. Its Operating Income for the months ended in Jun. 2022 was $3,423 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $33,247 Mil.

PepsiCo's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*3423/-236
=14.50

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

PepsiCo's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6032 + 33247) / 80900
=0.49

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

PepsiCo has a Z-score of 4.32, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.32 is strong.

* 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  (NAS:PEP) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

PepsiCo has the Financial Strength Rank of 5.


PepsiCo Financial Strength Related Terms

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


PepsiCo 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 Headlines

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