Financial Analysis Nestle x PepsiCo G

GIOVANNA VALERIA MORDASKI KOWALCZUCK
L0006MPMP1113

Course Leader: Steve Lumby
Course Administration: Bardia Hariri LONDON SCHOOL OF COMMERCE – MBA for Executives Financial Management and Analysis

FINANCIAL ANALYSIS OF

X

London-UK
15th May 2014
CONTENTS

1. NESTLE HISTORICAL 5
2. PEPSICO HISTORICAL 5
3. FINANCIAL INFORMATION 6
4. FINANCIAL RATIOS 9
4.1 Profitability 9
4.2 Liquidity 12
4.3 Efficiency 13
4.4 Gearing Ratios 15
4.5 Investment 17
CONCLUSION AND RECOMMENDATIONS 20
POST REPORT REFLECTION 22
REFERENCES 23
APPENDIX 24
01. NESTLE 24
02. PEPSICO 29

TABLE OF FIGURES

Figure 1 - Financial Highlights PepsiCo 2013 9
Figure 2 - Nestlé’s Share Price and Volume Graph - 2009 to 2013 18

TABLE OF TABLES

Table 1 - Nestlé 's relevant financial information 2009 to 2013 6
Table 2 - PepsiCo 's relevant financial information 2009 to 2013 8
Table 3 – ROCE Nestlé and PepsiCo calculated from 2009 to 2013 9
Table 4 - ROI Nestlé and PepsiCo calculated from 2009 to 2013 10
Table 5 - Operating Profit Margin Nestlé and PepsiCo calculated from 2009 to 2013 11
Table 6 - Current ratio Nestlé and PepsiCo calculated from 2009 to 2013 12
Table 7 - Quick Ratio Nestlé and PepsiCo calculated from 2009 to 2013 13
Table 8 - Inventory Days Nestlé and PepsiCo calculated from 2009 to 2013 13
Table 9 - Receivable Days Nestlé and PepsiCo calculated from 2009 to 2013 14
Table 10 - Interest Cover Nestlé and PepsiCo calculated from 2009 to 2013 15
Table 11 - Debt-equity Nestlé and PepsiCo calculated from 2009 to 2013 15
Table 12 - EPS Nestlé and PepsiCo calculated from 2009 to 2013 17
Table 13 - PER Nestle and PepsiCo extracted from 2009 to 2013 18
Table 14 - Dividend cover Nestlé and PepsiCo calculated from 2009 to 2013 19

INTRODUCTION

This essay compares two dominant companies, Nestlé and PepsiCo, in beverage and food industry in order to be able to recommend the best company for investment. Both Nestlé and PepsiCo

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