Financial Analysis Report of the Pepsico(百事可乐的财务分析作业).docx

Financial Analysis Report of the PepsiStudent 1: XXXXXXXXXXXXStudent 2: XXXXXXXXXXXXMay 24, 2022Pepsico Inc. 2022Ending market price per share3()Number of common shares outstanding all of 20221782Net sales39474Operation profit7170Net income5658Total shareholders equity1 04 drBeginning or year15447匕na or year1 / DNJ39474Revenues cst of sales18038V Vz 1 OCll VOTotal assetsBeginning of year34628End of year29930Some Result calculated as followProfit Margin0.143334853Average of Assets32279Return on Assets0.22212584Average of Equity16386Return on Equity0.345294764earning per snare5.1/ Dvot- 1 /DProfitability Ratios calculation:n 广一 Net Income 5658 AinProfitMargin=-0.1436NeiSaks 硼Re rurn on Assets= °perating InC°me 7170 0.222 Averagetotal Assets 32279Re sum on Equity=Net Incomg Average Total Eqi565816386Pr ice Earning Ratio=9.449LiquidityEarning per Share=Net Income3.175Average Shares of Capital Stock Outstanding 1782Current Market Price of one share of stock 30Earning Per Share 3.175Profit Margin describes the ability to earn net income from each sales dollar, from the calculated result we know the ability of it is not very well, and we can inform that the Pepsi earn income mainly by a great amounts of sales. ROA with 0.222 is a good signalthatthe Pepsi ha s good profitabiliTthye. ROE, EPS,and PE allshow that the Pepsi is a good profitable company.We will use the information as follow to calculate the liquidity ratio for Pepsi in 20 and some results are calculated in the table.Pepsico Inc. 2022Cash|)910Accounts receivable, netBeginning of year3725Ena or year4389Inventorybeginning ot year1926nnu oi year2290i uiai vuii viitTotal current liabilities1U1317753ivndl imtMiiiiey1 Cl”=Beginning of vear29930End of year34628Some Results of the RatiosWorking Capital2398Current Ratio1.309299626Quick Assets5299Quick Ratio0.683477364Cash+ short- tern investment+ current receviable6870Acid-lest Ratio0.886108603Liquidity Ratios calculation:Working Capital=Total Current Assets-Total Current Liabilities=10151-7753=2398-Current Assets 10151Current Ratio=1.309 Current Liabilities 7753c i c Quick Assets n5299 Quick Rag current LiabiM前53Acid Test Ratio=Cash Shortterm Investment+ current receivableCurrent Liabilities687077530.88 8SolvencyThe Pepsi has positive working capital which means that the current assets excesses current liabilities. Besides, current ratio, quick ratio, and acid-test ratio all ha value, so the Pepsi has a good liquidity.We will use the information as follow to calculate the solvency ratio for Pepsi in 200 and some results are calculated in the table.11.0092839747855'224'35.06696429'is small, so the company has moreDebit and Equity RatiosAmountRatioTotal Liabilitis173940.502310269Total Equity172340.497689731Total Liabilities and Shareholders' Equity 34628 Other Ratios of Solvency Debt-to-Equity Ratio Income before interest and taxesInterest expense times interest earnedFrom the ratios we can see debt- to- equity ratio opportunity to expand through of debt financing.EfficiencyWe will use the information as follow to calculate the solvency ratio for efficiency 2022 and some results are calculated in the excel.Information that will be used in ratios calculationNet salesAverage Total AssetsAverage Total Accounts ReceivableAccounts Receivable,netCost of salesAverage InventoryEnding InventoryRatios of EfficiencyTotal Asset TurnoverAccounts Recceivable turnover rateDays* sales uncollectedInventory turnover rateDays* sales In Inventory39474 32279'4057, 4389' 18038*2108*22901.222900338.9.729849643.0.1111871118.556925996,46.33828584iTotal asset turnoverNet sale、222部474Average total assets 32279Net sales Accounts receivable turnover rate=.，.Average Accounts receivable3947440579.730Day *s sales uncollected二Inventory turnover=Accounts recei,ljl Net salesCost of goods salesAverage Inventotynet 4388939474180388.55746.338Ending Inventory2290Day *s sales in inventory=365Cost of goods sales18038Totalassettumoverwith 1.2223shows thatthe Pepsi ha a degree abilittyo use itsssetstogenerate sales. Accounts receivable turnover rate means the Pepsi needs 9.73 times to converts its receivable into cash each year. In addition, the company collects its accounts receivable w the frequency of 0.111 , and sales and replaces its merchandise inventory 8.557 times each year From the da* sale in inventory we know the demanded product is hard to sell for it takes 46.338 times to make itH.owever, the Pepsi is efficient company overall.PART 3 Comparison between Pepsi and Coca ColaHere we make a comparison by profitability and efficiency ratios between Pepsi and Coca Cola. The data of Coca Cola is as follow.Profitability ratios comparisonUse this information to calculateEnding market price per shareNumber of common shares outstanding all of Net salesOperation profitNet incomeTotal shareholders* equitythe profitability ratio forPepsico in 2022PepsicoCocaCola'30880,202217823519,3947428857, 7252*7170598 b56581544717325394741803816920.21744.28857.104061Beginning of year End of yearRevenuesCost of salesTotal assetsBeginning of year End of yearProfit MarginAverage of Assets Return on Assets Average of Equity Return on Equity Earning per share34628299300.143334853322790.2221258416386 0.345294764 3.1750841752996343269,0.20726340236616, 0.19805549519332, 0.309383406 1.699630577From the table above we know that the Profit Margin of Coca Cola is larger than Pepsi, which means that Coca Cola has a great ability to earn inPceopmsei.thBaensides, the ROA of CocaCola is also bigger than Pepsi. But the earning per share and ROE is smaller than the Pepsi. So know that Coca Cola has a great profitability than Pepsi , while Pepsi can gain greater income its shareholders.Efficiency ratio comparisonInformation used in ratios calculationCoca Cola288573661629523317104061930.522200.7880980999.7754065040.1149461145.3903133977.86853738PepsicoNet sales39474Average Total Assets32279Average Total Accounts Receivable4057Accounts Receivable,net4389Cost of sales18038Average Inventory2108Ending Inventory2290Ratios of Efficiency of two companiesrate 9.7298496430.1111871118.55692599646.338285841.222900338Total Asset Turnover Accounts Recceivable turnover Days' sales uncollected Inventory turnover rate Days* sales In InventoryFrom the table we get the information that the Total Assets Turnover, Inventory Turnover rate, and of Pepsi are bigger than Coca Cola. In additions,altehse IDnaylsnventory of Coca Colais much bigger than Pepsi. All these information show that the Pepsi is more efficient.PART 4 Review report about Accounting course and somesuggestions to the courseReview report about Accounting courseAccounting is crucial in our information age. In our Accounting course, we discussed the importanceof accountingto differentypesof organizatio»nd describedthe acceptdaccountingprinciplesA.t the same timewe learned the financia itatements andmastered the method to make journal entriess iWba C, we learned the adjustmentto journal enties and closing the accounting cycle. During the last semi-term we focused on the details of assets, liabilities and equity. The whole procedure of accounting cours was very meaningful and useful though it sometimes might be hard and dull.Some suggestionsThe accountingcourseisgood overallH.owever, thereare stilslome detail Jhatboth teacher and student need to make improvement.Firstlyl,thinkthe exams in classisa good method to evaluatethe student,and itishelpful for us to consolidate the knowledge, so it should be reserved in continue teaching Secondly, we have homework every week, we'tdoneed to submit it every week though.I think it will be better if we submit the homework every week because we have deadline then and may spend more time in it. Thirdly, every time we took the first part of the cla we all felt tired because this part of class last nearly one and hhilnfkhbUrs. I don is a efficient method to teaching, instead of, the first part of the class should be sho and then we can have 10 minutes resting time, as a result of it we may have a great stat to take the lessons.Reference1 Pepsico 2022 Annual Report2J Coca Cola 2022 Annual ReportContentsPREFACEPART 1 FINANCIAL STATEMENT OF THE PEPSI .Income Sta tement of Pepsi3The sta tement of cash flow of Pepsi3B ALANCE SHEET OF PEPSI4The sta tement of C ommon Shareholders 'Equity6.PART 2 HNANCIAL ANALYSIS OF PEPSI6D OLLAR AND PERCENTAGE CHANGES 6.Trend percentages of trend analysis 8c OMPONENT PERCENTAGE 8Ratios9Profitability9Liquidity1.0SolvencyEfficienc.y1.213PART 3 COMPARISON BETWEEN PEPSI AND COCA COLAProfitability ra tios comparison 13Efficiency ra tio comparison 1.4PART 4 REVIEW REPORT ABOUT ACCOUNTING COURSE AND SOME SUGGESTIONSTO THE COURSE14R EVIEW REPORT ABOUT A CCOUNTING COURSE 1.4Some suggestions 1.4REFERENCE15PrefaceThisfinanciaalnalysiireportof Pepsi ismainly focuson the probabilitaynd efficiencryatiocalculations, as well as the simple comparison with the Coca Cola Company. In addition, the dat of this report is collected from the annual report in 2022.Part 1 Financial Statement of the PepsiIncome Statement of PepsiFiscal years ended Dec.29, 2022, Dec. 30, 2022 and DEC. 31, 2005:而Ims except 第 加除 amounts)200720062005Net Revenue$39.47495,137S32,%2 18,0381516214,176Wl叫 general and adranisiraw expenses 14,2081171112452Afnfftization 山倘里於 assets 58162150Operatinq Profit 7,1706M25.984Boeing 四加 incorne 560553495nteresi exnense (224)039)(256)inmi incowe USin159Income before Income Taxes v6.9896.382Provision for Incwnehxes, 1,973U47Z304Net Income$5,658$ 5,32$ 4,078Net Income per Common Slure O48$3.42$243Diluted 53.41J3341239The statement of cash flow of PepsiFiscal years ended Dec.29, 2022, Dec. 30, 2022 and DEC. 31, 2005佃 miMn。200710062005Operating Activities依 1 rccn .5 5,658$ 5 642J 4.078Dexeaaxn rd anoiiation1.4261.4061.308Stod-based conpensation expense .260270311Exe5s ut benets Iron share bdsed paymeni dffangrnents.(208)(134)Cash panents for merger-related costs and resrctunng charges(22).sm and retree nedkdl plan contributions(310)(131)(877)的win am retree ncdkal plan apr 瘠 535544464Boning equ tr/ ixont nei of aMcsds.(441)(442)(414)Deierred ixonw taxes and other charges and credits.118(510)440Change m accounts and notes receivable神5)(330)(272)Change in inventoriei (M(186)(132)Change in prepaid expenses and other currert 都sets(16)07)(56)Change m accounts payabie and other cureni hbdiDes 500223188Change in income taxes payable128(295)609(107)64227Net Cash Provided by Operating Activities 6.9346.C845.852Investing Activities(apiui spending (1430)(2,068)(1.736)Salesotproperty,plantarxfequipment . .474988Aocwds from (n/esiment in| Inance assets27(25)一Acquisittm and investments m noncontrofled 而 .(1320)（父。(1.095)g proceeds ham He of PB6 stock 315318214D邮陶rs ，力373Short w 疥侬 meN by origral maturityMure than由:eemonths - pcha$e$(13)萌(83)Mote than three monihs - matuDes1132584Three ninths or xl (413)_加<992)Net Cash Used for Investmg Activities(3.744)(194)asmFinancing AdMtiesProceeds 4rom issenoes of bog term debtSI25Ptymenb of tong lerm debtmdsn(177)Short leini bonoanngs. bygnal mam 呻More than three monihs - p，oce«hS3185332More than three rnonihs - payments .(133)网(85)Three nxxiths 5 Ik* xl(345)2胸1.M1Cash dMcends paid 亿2M)(14541Share repurchases - common(UNIG.00WG.012)Sha*e repurchase!preterred(12)(101（坳Proceeds irom eneroses of stock optiorw 1JN1,1941,099Excess / benefits hw shre-based panent anrgemes.20S134Net Cash Used for Financing Activities . . (40咐(5砌amEttea of exchange rate chants on cash and cash equivalents. 7528（21）Net (DecredseMncrease in Cash md Cash Equivalents . (HI)(6»4XCash and Cash EquiVE - - ： r nn ng of Year同1J141.280Balance sheet of PepsiFiscal years ended Dec.29, 2022, Dec. 30, 2022(in 冏必 acepl pti 小 ye imcunts)20072006MSETSCurrent Assets(ash and cai equivalents$ 910$ 1651Shorwoiwesttnents1t5711J71Acaxjnts and n«es receivabt wt4,3893,725Memories2.2901,926Prepd expenses aM other oirent assets991657Total Current Assets.iojsi 9jFProperty, Plant and Equipment net11,2289,687Amortizable Intangible Assets net796637Goodml5,169WSher n通言初乐 intangible mk1,2481/2N onamortizable Intangible Assets6,4115,806Investments in Noncontrolled Affibates4.3543,690Othertoets 1.682980Total Assets ?$34,628129r930LIABILITIES ANO SHAREHOlDfRV EQUIHCurrent UdbifitiesShon4enn cbBgadcns$S 274Accounts payat W M cunert斓it v7,32"%hcofnetuespeyabe15190Total Cunent Liability ? 7JS3Long-Term Debt Obligations42032.550Other UabilitiK4,7924624Deferred Income TaxesMG528WUMMk17JNHSUComrnitnients 向 CondngendePreferred Stock, no pr value4141Repurchased Preferred Stock(132)(1201Common Shwdwldefs' EquityComon flock,pary的e 1 双 pw(authored ).600hard1.782 3。3010Caphdl in 抓出 cf par value4505MRetard eamirgs2SJM24837Arcvm优ed other conprelwK toss(952)(2,246127J12眄£ 呼1masd(1and 144。着叫 侬尸屈力 (10,德 7)0JS8ITotal Common Sharehclden* Eqii17,32515,447Total Liabilities and Shareholders,EquitySM,628$29.930The statement of Common Shareholders 5 EquityFiscal years ended Dec.29, 2022, Dec. 30, 2022Part 2 Financial Analysis of PepsiDollar and percentage changesThe dollar and percentage changes of the assets ,liabilities and equities in balance sheet a shown in sheet as f