PepsiCo’s net worth is likely to concern you if you invest in the food and beverage sector. It is a multinational company manufacturing, distributing, and marketing its food and beverage products. As of 2021, the company has been serving more than 200 countries.
As of the quarter ending September 30, 3021, its net worth was $15.9 billion. However, the net worth varies slightly from time to time. And to understand why the value is not constant, you’ll need to know how to calculate it. Once you know how to go about it, you can determine any company’s value at any time.
But why is it important to know a company’s net worth? It helps you to understand how the company is doing financially. As such, you can predict its financial future. And allows you to choose to be part of it through investment or to stay away.
The Growth of PepsiCo
PepsiCo began in 1893 by Caleb Bradham, and currently, its headquarters are in Purchase, New York, United States. Since its inception and early ’90s, the company has sold thousands of Pepsi’s popular drink bottles. However, during and after World War I, it went bankrupt.
However, Charles Guth bought the company, and it became successful. Currently, PepsiCo is among the leading food and beverage companies globally. It has won the Short Industry Award for Best Large Business.
Calculating PepsiCo’s Net Worth
Calculating the value of any given company is not a challenging task when you have the correct information. Therefore, it is best to find data from suitable sources, or you’ll end up with the wrong net worth.
One of the straightforward ways to calculate a company’s net worth is to find its assets and liabilities. Then, subtract the liability value from the asset’s value. The figure you get is the company’s net worth.
However, PepsiCo is a publicly-traded company. Therefore, its net worth is equal to its current shareholder equity value. Shareholder equity is the total value of the company’s shares.
As of September 30, 2021, PepsiCo’s shareholder equity value was $15.9 billion. This means the net worth of PepsiCo is the same amount.
However, the shareholder’s equity, also known as the book value, is not constant. As a result, a company may find its net worth rise or fall from one financial year to the next. For a company’s stock value to keep increasing, it must remain profitable.
As we’ve determined, the net worth of PepsiCo is currently in the region of $15.9 billion. Although the value is ever-changing, you can tell that it is one of the world’s financially stable food and beverage companies. Besides, PepsiCo is expanding further, and hence its value may increase in the coming years.