PepsiCo, Inc. (PEP) Interest Coverage Ratio: 12.03x
The interest coverage ratio for PepsiCo, Inc. (PEP) is 12.03x as of Wednesday, June 10, 2026.
PEP Interest Coverage Ratio Metrics
INTEREST COVERAGE RATIO
12.03x
PEP Competitors' Interest Coverage Ratio
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| PepsiCo, Inc. (PEP) | — | 12.03x | N/A | N/A | N/A |
| Anheuser-Busch InBev SA/NV (BUD) | $157.86B | 4.05x | 3.76x | 3.40x | 3.13x |
| Altria Group, Inc. (MO) | $121.70B | 12.80x | 11.40x | 10.86x | 10.34x |
| Monster Beverage Corporation (MNST) | $88.90B | 366.57x | 217.88x | 217.88x | 217.88x |
| Colgate-Palmolive Company (CL) | $71.39B | 16.28x | 15.64x | 16.79x | 20.80x |
| Target Corporation (TGT) | $57.99B | 11.50x | 12.52x | 12.14x | 13.14x |
| The Procter & Gamble Company (PG) | $347.85B | 22.55x | 21.30x | 26.79x | 29.46x |
| Keurig Dr Pepper Inc. (KDP) | $43.78B | 4.84x | 4.84x | 5.25x | 5.11x |
| The Kroger Co. (KR) | $39.49B | 2.96x | 5.68x | 6.08x | 6.36x |
| Sysco Corporation (SYY) | $37.68B | 4.86x | 5.07x | 4.92x | 4.26x |
Financial Health Indicators
Interest Coverage
12.0x
Debt/Equity
2.45
Current Ratio
0.85
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
- < 1.5x: EBIT is less than 1.5 times interest expense
- 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
- 3x - 5x: EBIT is between 3 and 5 times interest expense
- > 5x: EBIT is more than 5 times interest expense
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
PepsiCo, Inc. Interest Coverage Ratio Formula & Definition
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
PepsiCo, Inc. Interest Coverage Ratio FAQ
- What is the interest coverage ratio for PepsiCo, Inc. (PEP)?
- The interest coverage ratio for PEP stock is 12.03x.
About PepsiCo, Inc.
PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region. The company's extensive product catalog encompasses popular snack foods like various dips, cheese snacks, spreads, and a range of chips (including corn, potato, and tortilla varieties). Its pantry staples feature cereals, rice, pasta, baking mixes, beverage syrups, granola bars, grits, oatmeal, rice cakes, and ready-made side dishes. In the beverage sector, PepsiCo offers concentrated syrups, fountain beverages, pre-packaged drinks, ready-to-consume teas, coffees, fruit juices, dairy-based items, and home carbonation systems with associated goods. PepsiCo reaches its broad clientele, which includes wholesale partners, food service providers, various retail outlets like supermarkets, pharmacies, convenience shops, discount stores, large-format retailers, membership-based stores, hard discount retailers, online merchants, and approved independent bottlers. This widespread distribution is achieved via direct store delivery, customer warehouse systems, and comprehensive distributor networks, along with direct sales to consumers through digital commerce channels and retail partners. Established in 1898, the corporation maintains its principal office in Purchase, New York.
- Sector
- Consumer Defensive
- Industry
- Beverages - Non-Alcoholic
- CEO
- Ramon Luis Laguarta