ACC205: Principles of Accounting
Instructor Susanne Eliott
August 19, 2013
Pepsi
PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York. PepsiCo is a world leader in convenient snacks, foods, and beverages, with revenues of $60 billion and over 285,000 employees. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Coca-Cola Company has historically been considered PepsiCo's primary competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies.
The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2010 it is separated into four main divisions: PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. As of 2009, 71 percent of the company's net revenues came from North and South America, 16 percent from Europe and 13 percent from Asia, the Middle East and Africa. PepsiCo worldwide employs approximately 285,000 people.
Analysis of PEPSI
Ratio Analysis
Dec 05 Dec 04 Current Ratio 1.11 1.28 times Quick Ratio 0.87 0.95 times Net profit Margin
12.52%
14.39% Return on Assets
12.85%
15.05% Account Receivable Turnover 9.99 9.76 times Inventory turnover 8.37 8.22 times Total assets turnover