Professional Documents
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
“FINAL REPORT”
Of
PEPSICO INTERNATIONAL
On
(FINANCIAL MANAGEMENT)
SUBMITTED BY:
SUBMITTED TO:
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
ABSTRACT
The organization that they had selected for the fulfillment of the
project is named as PEPSICO INTERNATIONAL, which is a multi-
national company and is the well known all over the globe. The
purpose for selecting this organization was to bring the financial
status, trend and some important highlights in front of the colleagues
and fellows keeping in mind that the organization is really famous
and is known by all of us. So, here’s the final session for the financial
information for the organization in the form of analysis, which will
clear the elaboration about the company in a very delicate way, as
there are three kinds of namely Ratio Analysis, Index Analysis and the
Common Size Analysis. They have tried the hard work to deliver all
the possible information about the organization and this hard work
would be in vain if they had not the guidance of the Financial
Management Supervisor, Miss Fakhera Mushtaq.
Adil Azhar
Ghafran Abbas
Sadia Naz
Adeeba Ali
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
TABLE OF CONTENTS:
PROGRESS OF PEPSICO……………………………………………………….6
RATIO ANALYSIS………………………………………………………………14
INDEX ANALYSIS………………………………………………………………23
SUMMARY……………………………………………………………………….26
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
Mission
Their mission is to be the world's premier consumer Products Company
focused on convenient foods and beverages. They seek to produce
financial rewards to investors as they provide opportunities for growth
and enrichment to their employees, their business partners and the
communities in which they operate. And in everything they do, they
strive for honesty, fairness and integrity.
Vision
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
Pepsi has been bringing fun and refreshment to consumers for over
100 years. Learn more about their flagship brand and the broad
spectrum of beverages it offers worldwide.
From its humble beginnings over a century ago, Pepsi-Cola has grown
to become one of the best-known, most-loved products throughout the
world. Today, the company continues to innovate, creating new
products, new flavors and new packages in varying shapes and sizes to
meet the growing demand for convenience and healthier choices.
Pepsi is constantly on the lookout for ways to ensure their consumers
get the products they want, when they want them and where they
want them.
Different Products:
• Vanilla Pepsi (2002)
• Tropicana (1998)
• Gatorade (2001)
• Aquafina (1993)
• Cherry Pepsi (1989)
• 7-Up (1986)
• Diet Pepsi (1964)
Competitors:
• Coca-Cola is the major competitor of PEPSICO.
A perfect match of products:
PEPSI Coca-Cola
• Vanilla Pepsi (2002) Vanilla Coke (2002
• Tropicana (1998) Minute Maid (1960)
• Gatorade (2001) PowerAde (2001)
• Aquafina (1993) Dasani (1999)
• Cherry Pepsi (1989) Cherry coke (1985)
• 7-Up (1986) Sprite (1960)
• Diet Pepsi (1964) Diet coke (1982)
FINANCIAL STATEMENT ANALYSIS OF PEPSICO
INTERNATIONAL:
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
1) Ratio Analysis
i. Liquidity Ratios
Current Ratio
Quick Test
Inventory to Net Working Capital
Cash Ratio
v.
Coverage Ratios
Interest Coverage
Days of inventory
2) Common Size Analysis
3) Index Analysis
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
Fixed Asset
23 Financing L.T.L / Net Fixed Asset 20800 <
24 T.D to Asset T.L / T.A 14556 29930 0.48633
Interest
25 Coverage Ratio EBIT / Interest Charges 6989 239 ? 29.24268
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
1.4
1.2 Current Ratio
1
0.8 Quick Test
0.6
Inventory to Net
0.4 Working Capital
0.2 Cash Ratio
0
2006 2007 2008
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
0
2006 2007 2008
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
Interest There is
Coverage fluctuation in
the coverage
ratio and even
29.24 34.06 20.34 it decreased
268 696 043 up to 20 in Interest coverage
2008. The should be decrease
company to minimum level
failed to keep
it constant .
Days of 44.60 46.45 45.23 Ratio is Should maintain the
inventory 030 970 267 almost stability
constant.
50
40
30 Interest
Coverage
20 Days of
inventory
10
0
2006 2007 2008
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
INCOME
2006 2007 2008
STATEMENT ITEM
Net Revenue
Cost of sales 44.8 45.69 47.05
Selling, general and 36.19 35.99 36.76
administrative
expenses
Amortization of 0.14 0.14 0.46
intangible assets
Operating Profit 18.5 18.16 16
Bottling equity 1.57 1.4 0.8
income
Interest expense (0.6) (0.5) (0.7)
Interest income 0.4 0.31 0.09
Income before tax 19.8 19.33 16.2
Provision for income 3.8 4.9 4.3
tax
Net income 16.05 14.33 11.8
Net income per
common share
Basic (9.7) (8.8) (7.5)
Diluted (9.5) (8.6) (7.42)
DESCRIPTION:
The common size analysis for income statement shows the firm is in a
better trend.
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
BALANCE SHEET
2006 2007 2008
ITEMS
ASSETS
CURRENT ASSETS
Cash and 5.5 2.6 5.7
cashequivalents
Short term 3.9 4.5 0.59
investments
Accounts and 12.4 12.6 13.01
notes receivable,
net
Inventories 3.09 6.6 7
Prepaid expensis 2.19 2.8 3.6
and other current
assets
Total current 30.5 29.3 30.02
assets
Property ,plant 32.3 32.4 32.4
and equipment,
net
Amotizableintangi 2.12 2.29 2.03
ble assets ,net
Goodwill 15.34 14.92 14.3
Other 4.04 3.6 3.13
nonamortizable
intangible assets
Nonamortizable 19.39 18.5 17.3
Intangible Assets
Investments in 12.32 12.57 10.7
Noncontrolled
Affiliates............
Current Liabilities
Short-term 0.91 ----- 1.02
obligations
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
Liabilities
Long-Term Debt 8.51 12.1 21.8
Obligations
DESCRIPTION:
The common size analysis for balance sheet shows the firm is in a
better trend.
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
INCOME STATEMENT
2006 2007 2008
ITEMS
Net Revenue 100 112.34 123.92
Cost of sales 100 114.4 129.1
Selling, general and 100 111.7 125
administrative expenses
Amortization of 100 35.8 39.5
intangible assets
Operating Profit 100 110.27 106.65
Bottling equity income 100 101.26 67
Interest expense 100 93.72 137.65
Interest income 100 72.54 23.6
Income before tax 100 109.18 100.4
Provision for income tax 100 146.47 139.49
Net income 100 100.2 91.13
Net income per common
share
Basic 100 101.7 95.32
Diluted 100 102.09 96.10
DESCRIPTION:
The index analysis for income statement shows the firm is in a better
trend.
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
Current Liabilities
Short-term 100 ----- 172
obligations
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
DESCRIPTION:
The index analysis for balance sheet shows the firm is in a better
trend.
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PEPSICO INTERNATIONAL (Performance with purpose): FINAL REPORT
SUMMARY:
140
120
100
Net Revenue
80 Cost of sales
60 Operating Profit
Income before tax
40 Net income
20
0
2006 2007 2008
70
Total Current Assets
60
50 Total Assets
40
Total Current
30 Liabilities
20 Total Liabilities
10
Total Equity
0
2007 2008 2009
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