2008 2007 2006

43251.0 39474
net revenue 0 .00 35137.00
20351.0 18038.
cost of sales 0 00 15762.00
Selling, General & Administrative 15901.0 14208.
expenses 0 00 12711.00
amortization of intangible 64.00 58.00 162.00
7170.0
operating profit 6935.00 0 6502.00
bottling equity income 374.00 560.00 553.00
interest expense 329.00 224.00 239.00
interest income 41.00 125.00 173.00
7631.0
income before income taxes 7021.00 0 6989.00
1973.0
provision for income taxes 1879.00 0 1347.00
5658.
net income 5142.00 00 5642.00
net income per common share
basic 3.26 3.48 3.42
diluted 3.21 3.41 3.34
 Based on above figure net income has decreased from $5.6 billion to $5.1
billion between fiscals 2006 -2008)because interest expense and cost of
goods sold are increased .
2008 2007 2006
Assets
current assets
Cash and Cash Equivalents 2064.00 910.00 1651.00
Short Term investments 213.00 1571.00 1171.00
Accounts and notes Receivable, net 4683.00 4389.00 3725.00
Inventories 2522.00 2290.00 1926.00
prepaid expenses and Other Current Assets 1324.00 991.00 657.00
Total Current Assets 10806.00 10151.00 9130.00
property , plant and equipment , net 11663.00 11228.00 9687.00
amortizable intengible assets , net 732.00 796.00 637.00
Goodwill 5124.00 5169.00 4594.00
other nonamortizable intengible assets 1128.00 1248.00 1212.00
nonamortizable intengible assets 6252.00 6417.00 5806.00
investments in noncontrolled affiliates 3883.00 4354.00 3690.00
other assets 2658.00 1682.00 980.00
total Assets 35994.00 34628.00 29930.00
balance sheet liabilities
liabilities and shareholders equity
current liabilities
short Term obligations 369.00 0.00 274.00
accounts payable and other current liabilities 8273.00 7602.00 6496.00
income taxes payable 145.00 151.00 90.00
total current liabilities 8787.00 7753.00 6860.00
long term debt obligations 7858.00 4203.00 2550.00
other liabilities 7017.00 4792.00 4624.00
deferred income taxes 226.00 646.00 528.00
total liabilities 23888.0 17394.00 14562.0
0 0
commitments and contingencies 41.00
preferred stock , no par value 41.00 41.00 120.00
repurchased preferred stock 138.00 132.00
common shareholders equity
common stock , par value 1 2/3 per share 30.00 30.00 30.00
( authorized 3600 shares , issued 1782 shares )
capital in excess of par value 351.00 450.00 584.00
retained earnings 30638.00 28184.00 24837.00
accumulated other comprehensive loss 4694.00 952.00 2246.00
repurchased common stock , at cost ( 229 and 177 shares 14122.00 10387.00 7758.00
, respectively )
total common shareholders equity 12203.00 17325.00 15447.00
total liabilities and shareholders equity 35994.0 34628.00 29930.0
0 0

2008 2007 2006

liquidity ratio
current ratio 9.13 6.56 7.30
quick ratio 10,805. 10,150.7 9,129.72
71 0
profitability ratio
gross profit 22900.0 21436.00 19375.0
0 0
0perating income 6999.00 7228.00 6664.00
return on stakeholders equity 0.42 0.33 0.37
return on total assets 0.14 0.16 0.19
gross profit margin 43250.5 39473.54 35136.5
3 5
net profit margin 0.12 0.14 0.16
activity ratio
invertory turnover ratio 8.07 7.88 8.18
total assets turnover 1.20 1.14 1.17
- Liquidity : refers to a company's ability to meet its requirements for cash.
Liquidity is necessary to meet both expected and unexpected cash demands. All
businesses need liquidity to operate. Inadequate liquidity can stunt growth and
ultimately lead to bankruptcy if debts cannot be repaid. However, too much liquidity
can detract from profits because liquid assets are low returning investments. The
standard measure of liquidity is the current ratio, calculated by dividing "current
assets" by "current liabilities”. The current ratio for PepsiCo of 9.13 indicates it is
the most liquid of the three companies, and also performing better than the beverage
industry……..
- Two common measures of profitability : are the net profit margin and the return
on assets ratios. Each provides a different perspective about the firm's profits. To
measure the profitability of a company's operations, you calculate the net profit
margin (NPM) by dividing "net income" with "sales”. Both entries come from the
income statement. Net profit margin indicates the percentage of each dollar of sales
that the firm is able to flow to the bottom line as profit.
NPM is a function of the price of the product (which produces sales revenue) and
efficiency of operations (cost of goods sold). A firm selling a unique product to a
captive market may be able to charge a premium price and thus generate greater
NPM. Conversely, a firm selling a generic product in a highly competitive market
will have a low NPM. It must be a very efficient company, or it will not survive.
Net profit margin for PepsiCo in 2008 equals 12% decreased than net profit margin
in 2007 .
The Return on Assets ratio (ROA), which is also known as the Return on Investment
ratio, is calculated by dividing "net profit" by "total assets”. It indicates the rate of
return provided by the book value of the company's assets. The higher the ROA, the
more profitable the company is. Consistent with the NPM, PepsiCo has the highest
ROA with 14% percent, in 2008 but it decreased when compared with ROA 16% in
2007 . This reflects PepsiCo’s ability to generate significant sales volume from its
asset base.
Total Asset Turnover Ratio:
Another indicator of a company's ability to generate profits is the total asset turnover
ratio, calculated by dividing "sales" by "total assets”. It indicates how effectively the
company generates sales from its asset base. The more effective the company is in
Inventory Turnover Ratio: For companies that have a large investment in inventory,
it is useful to calculate the Inventory turnover ratio, which is the "cost of goods sold"
from the income statement divided by the "inventory" shown on the balance sheet. A
low turnover ratio indicates too much investment in inventory. Whereas a high
turnover ratio could cause lost sales due to lack of merchandise to meet customer
demand , PepsiCo inventory turnover fulfills between 2007-2008 ( 8.08 , 7.88) .