Debt-to-Equity Ratio

The Debt-to-Equity Ratio measures how much debt a company uses to finance its operations compared to shareholders’ equity; a ratio of 2.47x means PEP has $2.47 of debt for every $1 of equity, indicating a heavy reliance on borrowed funds.

This is well above the sector median of 0.75x, placing PEP in the 89th percentile among its peers — meaning it carries far more debt than most companies in its industry. Trend data is not available here: the year-over-year change and quarter-over-quarter change are both listed as N/A, so no directional shift can be assessed. Because the debt level is high and no recent trend is known, the primary implication for an investor is increased financial risk — the company is more vulnerable to rising interest rates or earnings downturns — with no evidence of recent deleveraging. This elevated leverage, combined with the lack of a downward trend, supports the overall NEUTRAL verdict by highlighting a notable risk factor that tempers any bullish case, without being so extreme as to demand a negative rating on its own.

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