When an investor evaluates the horizontal analysis they can determine the stability of the corporation, giving them solid insight. Technological innovation and digitization can also provide it with growth opportunities in a number of areas from supply chain management to manufacturing apart from marketing and distribution. These macroeconomic factors will almost certainly present obstacles for PepsiCo over the next several quarters, as they will for most multinational U. This determination can be expressed in a percentage or a dollar amount. Threats Facing PepsiCo External Strategic Factors The food and beverage industry experiences a variety of threats.
The ratio for 2004 was 1. A very large number of suppliers located throughout the world in several countries supply Pepsico with raw materials at low prices. For the past 5 years, the fourth quarter has accounted for 29-31% of the yearly revenue stated on the annual income statement. In the fourth quarter of 2017, Pepsi recorded a net loss of 710 million dollars. This opens our next concept which is vertical and horizontal analysis. A high ratio provides the investor with an imminent outlook on the corporation being free of debt and how the company chooses to re-invest its profit. It seems that their battle in the non-alcoholic beverage drinking industry never ends.
Kulaiwik,2009 Pepsi Pepsi Cola has a long a rich history starting from 1898. The Coca-Cola Company offers around four hundred various consumer drinks and merchandise. The aim of this analysis is to arrive at financial comparisons between PepsiCo, Inc. This weakness indicates that the company has not yet maximized potential revenues outside the Americas. Through numerous acquisitions and periods of growth,. I then chose to conduct a Horizontal Analysis or Trend Analysis as it is sometimes referred as.
But that is just my preference. In the period leading to the 80's Pepsi boosted and increased its , a time which coincided with Coca Cola Company being the top most distributor and supplier of beverages PepsiCo Annual Report, 2013. Now we will get the percentages of total assets and compare with PepsiCo. Companies are always looking for ways to make profits when marketing their products. Journal of Marketing Theory and Practice, 54-69. There are two different formulas that can be employed to teach this information. This should be good news for the top line, enabling the company to deliver organic revenue increases in the range of 4% to 6%.
Pen Vanndarong Lectured by: Mr. The ratios indicate that in the year 2013, Pepsi made a return of 10. And with the Coca-Cola Corporation and PepsiCo being rivals the consumers will always be interested in their products. This can be owed to the fact that the company sells more products which are diversified compared to Coca-Cola. Looking from the outside as a consumer just purchasing both products you would think that they are both doing exceptionally well when it comes to income, demand, inventory, cash flow and sales. In comparing the financial performance of the two companies, it indicates that PepsiCo had a better financial performance as it increased its revenue while that for Coca-Cola decreased. PepsiCo however had a greater increase in all aspects, although their current assets did not increase at the same rate as their current liabilities, which may have been due to the current ratio decrease from 2004 to 2005.
A higher cost of sales may not be offset by higher revenues matching or exceeding the increased cost. The company had a 0. Its global presence is one major strength of the brand. Currents assets are very significant to companies like PepsiCo. One important strength of Pepsi is its competitive pricing strategy and that has helped the brand bear major economic fluctuations. These organizations… 5985 Words 24 Pages Project 6 — Gr. Within PepsiCo one can find them merged with Frito-Lay, Tropicana, Quaker, and Gatorade.
Pepsico Annual Revenue, Income Statement, 2017, 2016
These two companies have undoubtedly dominated the markets worldwide that they both receive universal recognition for their different products. It is because in past, Pepsi has faced a lot of protest for having caused water crisis in several regions. Bradham registered a patent for the formula of Pepsi-Cola in 1903, but the company went bankrupt during the Great Depression in 1931. The brand has increased its spending on digital technology for marketing as well as designing better customer experience. To analyze the primary financial statements, an individual.
Investors look for stocks with a growing top line. There are several factors apart from competition that have caused this shift in power. Apart from marketing, the role of technology has also grown in the area of supply chain and production. Their marketing and reasonable prices make iteasy for the people to buy their products in all income brackets. Hot drinks comprise of tea and coffee, while soft drinks contain flavor, sweetness, and carbonated or non-carbonated water. I am still biased though because I choose Pepsi over Coca-Cola.
However inventory level for Coca Cola is decreasing and inventory level for Pepsi is increasing , this indicates that Coca Cola is efficiently managing its inventory levels. We can find the increase or decrease for asset or liabilities. Brazil and Russia are mired in recessions, both hampered by low oil prices. Both Coca-Cola Company and PepsiCo, Inc. On the other hand, the profitability ratio of Coca-Cola can be seen to decrease between the year 2012 and 2013 with a decline of 2.
Pepsico Annual Revenue, Income Statement, 2017, 2016
Some increases in certain areas of one company and some decreases in areas of another company. Apart from that it is investing in advanced technology in its supply chain and production system. Sure, they own less but they are also being financially responsible. The found out ratios are then interpreted to see the trends. On the other hand, the profitability ratio of Coca-Cola can be seen to decrease between the year 2012 and 2013 with a decline of 0. Fluctuations in the international currency exchange rates have had a detrimental effect on the revenue of Pepsi from time to time.
