Coca-cola and Pepsi

PepsiCo Inc., profitability ratios | | | Dec 29, 2012 | Dec 31, 2011 | Dec 25, 2010 | Dec 26, 2009 | Dec 27, 2008 | Return on Sales | | Gross profit margin | 52.22% | 52.49% | 54.05% | 53.51% | 52.95% | Operating profit margin | 13.91% | 14.48% | 14.41% | 18.61% | 16.09% | Net profit margin | 9.43% | 9.69% | 10.93% | 13.75% | 11.89% | Return on Investment | | | | | | Return on equity (ROE) | 27.71% | 31.29% | 29.86% | 35.38% | 42.47% | Return on assets (ROA) | 8.28% | 8.84% | 9.27% | 14.92% | 14.29% | Ratio | Description | The company | Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | PepsiCo Inc.'s gross profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. | Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | PepsiCo Inc.'s operating profit margin improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. | Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | PepsiCo Inc.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. | ROE | A profitability ratio calculated as net income divided by shareholders' equity. | PepsiCo Inc.'s ROE improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. | ROA | A profitability ratio calculated as net income divided by total assets. | PepsiCo Inc.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012. |

PepsiCo Inc., short-term (operating) activity ratios | | | Dec 29, 2012 | Dec 31, 2011 | Dec 25, 2010 | Dec 26, 2009 | Dec 27, 2008 | Turnover Ratios | | | | | | Inventory turnover | 18.29 | 17.38 | 17.15 | 16.51 | 17.15 | Receivables turnover | 9.30 | 9.62 | 9.15 | 9.35 | 9.24 | Payables turnover | 14.71 | 16.29 | 14.96 | 15.01 | 15.20 | Working capital turnover | 40.15 | – | 34.49 | 11.33 |