Instructions: Use ONLY the data provided to answer the questions below.
Required:
1. Compute the five component ratios of a decomposition of ROE for Pepsico’s fiscal years
2013-2017 (present your results)
2. What patterns do you see?
3. Compute the year-to-year change in Revenues and Operating profit for each of Pepsico’s
segments (present your results).
4. What patterns do you see?
5. Compute the operating margin for each of Pepsico’s segments (present your results).
6. Compute the year-to-year change in operating margin for each of Pepsico’s segments
(present your results).
7. What patterns to you see?
8. Which segment(s) are positively (negatively) influencing Pepsico’s recent performance?
9. What does your analysis indicate regarding Pepsico’s future performance?
To facilitate your analysis, the data below are inserted into this document as an Excel Objects.
The images appear “fuzzy” but clicking on the data should cause it to open in an Excel
spreadsheet.
If, however, a spreadsheet does not open, you will have to enter the data manually. The data is
also included as a “picture.” Be careful in doing so, to insure the accuracy of your inputs.
STATEMENT O F FINANCIAL PO SITIO N
Fiscal Year:
(FYR Ending):
2013
2014
2015
2016
2017
(31DEC2013 )
(31DEC2014 )
(31DEC2015 )
(31DEC2016 )
(31DEC2017 )
ASSET S
Cash & Equivalents
9,678.000
8,726.000
12,009.000
16,125.000
19,510.000
Receivables - T otal (Net)
6,954.000
6,651.000
6,437.000
6,694.000
7,024.000
Inventories - T otal
3,409.000
3,143.000
2,720.000
2,723.000
2,947.000
Current Assets - Other
2,162.000
2,143.000
1,865.000
1,547.000
1,546.000
22,203.000
20,663.000
23,031.000
27,089.000
31,027.000
Plant, Property & Equip (Gross)
36,961.000
36,300.000
35,747.000
36,818.000
39,106.000
Accumulated Depreciation
18,386.000
19,056.000
19,430.000
20,227.000
21,866.000
Plant, Property & Equip (Net)
18,575.000
17,244.000
16,317.000
16,591.000
17,240.000
1,841.000
2,689.000
2,311.000
1,950.000
2,042.000
887.000
93.000
140.000
105.000
59.000
32,652.000
29,053.000
27,258.000
27,863.000
28,582.000
Current Assets - T otal
Investments at Equity
Investments and Advances - Other
Intangibles
Deferred Charges
214.000
179.000
159.000
140.000
134.000
1,106.000
588.000
451.000
391.000
720.000
77,478.000
70,509.000
69,667.000
74,129.000
79,804.000
Accounts Payable
4,874.000
5,127.000
5,546.000
6,158.000
6,727.000
Notes Payable
3,082.000
980.000
962.000
2,491.000
1,465.000
Accrued Expenses
4,034.000
3,968.000
4,078.000
4,214.000
4,175.000
Debt (Long-T erm) Due In One Year
2,224.000
4,096.000
3,109.000
4,401.000
4,020.000
Assets - Other
T OT AL ASSET S
LIABILIT IES
Other Current Liabilities
3,625.000
3,921.000
3,883.000
3,871.000
4,115.000
17,839.000
18,092.000
17,578.000
21,135.000
20,502.000
24,333.000
23,821.000
29,213.000
30,053.000
33,796.000
Deferred T axes (Balance Sheet)
5,986.000
5,304.000
4,959.000
5,073.000
3,242.000
Liabilities - Other
4,931.000
5,744.000
5,887.000
6,669.000
11,283.000
T OT AL LIABILIT IES
53,089.000
52,961.000
57,637.000
62,930.000
68,823.000
41.000
41.000
41.000
41.000
41.000
T otal Current Liabilities
Long T erm Debt
SHAREHOLDERS' EQUIT Y
Preferred Stock
Common Stock
25.000
25.000
24.000
24.000
24.000
Capital Surplus
4,095.000
4,115.000
4,076.000
4,091.000
3,996.000
Retained Earnings (Net Other)
41,293.000
38,423.000
37,153.000
38,599.000
39,782.000
Less: T reasury Stock
21,175.000
25,166.000
29,371.000
31,660.000
32,954.000
24,279.000
17,438.000
11,923.000
11,095.000
10,889.000
110.000
110.000
107.000
104.000
92.000
T OT AL SHAREHOLDERS EQUIT Y
24,389.000
17,548.000
12,030.000
11,199.000
10,981.000
T OT AL LIABILIT IES AND EQUIT Y
77,478.000
70,509.000
69,667.000
74,129.000
79,804.000
Shareholders Equity - Parent
Noncontrolling Interest - Nonredeemable
INCOME STATEMENT
Fiscal Year:
(FYR Ending):
Sales (Net)
2013
2014
2015
2016
2017
(31DEC2013 )
(31DEC2014 )
(31DEC2015 )
(31DEC2016 )
(31DEC2017 )
66,415.000
66,683.000
63,056.000
62,799.000
63,525.000
28,771.000
28,443.000
26,136.000
25,911.000
26,484.000
37,644.000
38,240.000
36,920.000
36,888.000
37,041.000
Selling, General, & Admin Expenses
25,060.000
25,582.000
24,455.000
24,190.000
23,852.000
Operating Income Before Depreciation
12,584.000
12,658.000
12,465.000
12,698.000
13,189.000
Depreciation, Depletion, & Amortiz
2,582.000
2,533.000
2,323.000
2,368.000
2,369.000
10,002.000
10,125.000
10,142.000
10,330.000
10,820.000
911.000
909.000
970.000
1,109.000
1,151.000
Cost of Goods Sold
Gross Profit
Operating Income After Depreciation
Interest Expense
Non-Operating Income/Expense
97.000
85.000
59.000
110.000
244.000
-297.000
-544.000
-1,789.000
-778.000
-311.000
8,891.000
8,757.000
7,442.000
8,553.000
9,602.000
2,104.000
2,199.000
1,941.000
2,174.000
4,694.000
47.000
45.000
49.000
50.000
51.000
Income Before EI&DO
6,740.000
6,513.000
5,452.000
6,329.000
4,857.000
Net Income (Loss)
6,740.000
6,513.000
5,452.000
6,329.000
4,857.000
Income Before EI&DO
6,740.000
6,513.000
5,452.000
6,329.000
4,857.000
1.000
1.000
1.000
1.000
.000
6,739.000
6,512.000
5,451.000
6,328.000
4,857.000
Special Items
Pretax Income
Income Taxes - Total
Minority Interest
Preferred Dividends
Available for Common Before EI&DO
Common Stock Equivalents - Savings
Adjusted Available for Common
-7.000
-9.000
-5.000
-5.000
-4.000
6,732.000
6,503.000
5,446.000
6,323.000
4,853.000
4.370
4.310
3.710
4.390
3.400
1,541.000
1,509.000
1,469.000
1,439.000
1,425.000
EARNINGS PER SHARE
EPS - Primary, Excluding EI&DO
COMMON SHARES
Common Shares for Primary EPS Calculation
Pepsico
12 Weeks Ended
9/5/15 12/26/15
Net Revenue
Frito-Lay North
$ America
3,555
Quaker Foods north America 583
North American Beverages 5,360
Latin America
2,283
Europe, Sub-Saharan Africa 2,918
Asia, Middle East, and North Africa
1,632
Total Net Revenue
$
16,331
Operating Profit
Frito-Lay North
$ America
1,085
Quaker Foods north America 150
North American Beverages
860
Latin America
(994)
Europe, Sub-Saharan Africa
398
Asia, Middle East, and North Africa
199
Corporate Unallocated
(282)
Total Operating
$ Profit
1,416
3/19/16
6/11/16
9/3/16
12/31/16
3/25/17
6/17/2017(a)
9/9/17
12/30/17
3/24/18
6/16/18
4,456
775
5,847
2,307
3,283
1,917
18,585
3,418
617
4,361
1,042
1,359
1,065
11,862
3,564
561
5,145
1,717
2,660
1,748
15,395
3,676
571
5,518
1,762
2,864
1,636
16,027
4,891
815
6,288
2,299
3,333
1,889
19,515
3,499
598
4,460
1,077
1,445
970
12,049
3,678
553
5,242
1,823
2,812
1,602
15,710
3,792
578
5,332
1,873
3,098
1,567
16,240
4,829
774
5,902
2,435
3,695
1,891
19,526
3,617
601
4,415
1,224
1,668
1,037
12,562
3,837
527
5,193
1,843
3,116
1,574
16,090
1,292
179
639
214
221
139
(444)
2,240
1,018
166
485
175
67
(148)
(144)
1,619
1,083
146
881
242
337
383
(106)
2,964
1,148
144
904
247
388
264
(274)
2,821
1,410
197
689
223
316
120
(574)
2,381
1,050
163
501
133
96
171
(251)
1,863
1,143
145
890
228
492
307
(286)
2,919
1,208
146
817
291
436
267
(162)
2,993
1,402
186
491
267
315
328
(396)
2,593
1,050
155
388
189
118
187
(280)
1,807
1,200
145
747
269
438
496
(267)
3,028
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