Coca-cola and Pepsi

Topics: Pepsi, PepsiCo, Coca-Cola Pages: 30 (8530 words) Published: June 20, 2013
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| 21.42| Average No. of Days|  |  |  |  |  |
Average inventory processing period| 20| 21| 21| 22| 21| Add: Average receivable collection period| 39| 38| 40| 39| 40| Operating cycle| 59| 59| 61| 61| 61|
Less: Average payables payment period| 25| 22| 24| 24| 24| Cash conversion cycle| 34| 37| 37| 37| 37|

Ratio| Description| The company|
Inventory turnover| An activity ratio calculated as revenue divided by inventory.| PepsiCo Inc.'s inventory turnover improved from 2010 to 2011 and from 2011 to 2012.| Receivables turnover| An activity ratio equal to revenue divided by receivables.| PepsiCo Inc.'s receivables turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.| Payables turnover| An activity ratio calculated as revenue divided by payables.| PepsiCo Inc.'s payables turnover increased from 2010 to 2011 but then declined significantly from 2011 to 2012.| Working capital turnover| An activity ratio calculated as revenue divided by working capital.| PepsiCo Inc.'s working capital turnover deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.| Average inventory processing period| An activity ratio equal to the number of days in the period divided by inventory turnover over the period.| PepsiCo Inc.'s average inventory processing period improved from 2010 to 2011 and from 2011 to 2012.| Average receivable collection period| An activity ratio equal to the number of days in the period divided by receivables turnover.| PepsiCo Inc.'s average receivable collection period improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.| Operating cycle| Equal to average inventory processing period plus average receivables collection period.| PepsiCo Inc.'s operating cycle improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.| Average payables payment period| An...
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