PEPNEUTRAL

PEP Debt-to-Equity Ratio Analysis

2.41x

Updated 825h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio measures the proportion of a company's financing that comes from debt versus shareholder equity; a ratio of 2.41x means PEP has $2.41 of debt for every $1 of equity.

Sector Performance

90th percentile

PEP

2.41x

Sector Median

0.74x

Sector Avg

2.51x

Prior Period

2.47x(Apr 2026)

↑ Improving

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Deep Analysis

The debt-to-equity ratio measures the proportion of a company's financing that comes from debt versus shareholder equity; a ratio of 2.41x means PEP has $2.41 of debt for every $1 of equity.

This level is well above the sector median of 0.73x, placing PEP in the 90th percentile among peers — indicating the company carries more debt than most of its industry counterparts. The year-over-year change is N/A, the quarter-over-quarter change is N/A, and no trend data for the last eight quarters is available, so no directional insight can be drawn. With a high debt level and no trend information, the investment risk is elevated but directionally ambiguous, as it is unclear whether leverage is increasing or decreasing. This high leverage contradicts a neutral assessment by suggesting above-average financial risk, but the absence of trend data tempers that conclusion, preventing a definitive bearish signal. Ultimately, the metric does not directly support the overall NEUTRAL verdict, but the lack of historical context leaves room for the neutral stance to hold.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about PEP?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

Who are PEP's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.