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Executive Summary
PepsiCo, Inc. is one of the largest and most successful consumer product companies in the world. In the year 2004, PepsiCo generated $78 billion in retail sales and has maintained excellence since the corporation was founded in 1965.
For more information about PepsiCos annual reports, visit: http://www.pepsico.com/PEP_Investors/AnnualReports/04/index.cfm For more information about PepsiCos products, click the icons on the front page.
Part A. Introduction
Chief Executive Officer: Steve Reinemund Home Office: 700 Anderson Hill Rd. Purchase, NY, 10577 Ending date of last fiscal year: December 25, 2004 Consumer products: this company provides foods and beverages. The principal brands include: Frito-Lay, Pepsi-Cola, Tropicana, Gatorade, and Quaker. Main geographic area of activity: PepsiCo is an international company that provides its products to about 175 countries.
Independent Auditor: KPMG LLP All of the financial reports were fair and accurate assessments as to where the company stands financially.
Dividend per share: 1.04 All information above was retrieved on: Feb.28, 2006 In my opinion, investors in this companys stock should hold. PepsiCo is a valuable stock to have, but the price is too high if you do not already own stock in this company.
Format: Single-step format 2003 14,592,000 9,810,000 3,568,000 2004 15,855,000 10,596,000 4,212,000
I believe that the data from the table above, as it relates to the income statement, reflects a successful year in 2004. This conclusion is due to the increases in all areas.
All three balance sheet accounts increased from 2003 to 2004. The biggest change is in total assets from 2003 to 2004.
of investments in unconsolidated affairs. Impairment of disposal of long-lived assets. Impairment of goodwill and indefinite-lived intangible assets. Allowance for franchise and license receivables and contingent liabilities. Self-insured property and casualty losses. Income tax valuation allowances and tax reserves.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
40.64
39.33
Working capital was the only liquidity ratio that showed a significant change from 2003 to 2004. This area more than doubled within the year interval.
2004
14%
Asset Turnover
Return on Assets Return on Equity
1.10
14% 33%
1.09
15% 34%
Debt to equity:
Although this companys debt to equity is over 1.0 for both years, meaning that more than half of the companys assets are financed by creditors, the number has decreased from 2003 to 2004.
Dividend yield:
PepsiCos dividend yield of 1.4% is below the snack company average of 2%.