Financial Ratio Analysis

Anonymous

Question Description

Purpose of Assignment

Students should understand how to use the financial information and tools learned in the class on a public company, obtain public company SEC reports, and use that data to calculate a company's financial ratios and their comparison to industry or competitor standards.

Chosen Pepsi Cola Corporation for our corporation on this assignment, and I have copied the link for the most current SEC Form 10-K (annual financial report) from the company's web site below. (Do not use the Annual Report that is sent to shareholders)

10-K SEC filing:

http://phx.corporate-ir.net/phoenix.zhtml?c=78265&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTExNDAyMDI5JkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3


Calculate and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:

  • Current Ratio
  • Inventory Turnover

Compare and contrast your company's ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other Internet sources, and provide a detailed answer and analysis as to why your company's ratios are different than the industry/competitor standard.

Prepare your analysis in a minimum of 175-200 words in Microsoft® Word. use of the Microsoft®Word tables is encouraged.

Cite the source of the industry/competitor ratio information.

Format your assignment consistent with APA guidelines.

Tutor Answer

Chucks574
School: UT Austin

Thank you so much

Running head: PepsiCo. Inc.

1

PepsiCo. Inc.
Name:
Intuition affiliation:
Date:

PepsiCo. Inc.

2

PepsiCo Inc. is a multinational American corporation that deals in food, beverage as well
as snacks ("PepsiCo Inc.", 2008). Based on the company’s most recent SEC report, its current
ratio & inventory turnover were as follows
Current ratio
Current assets ($ millions)

Current liabilities($ millions)

2015

23031

17578

2016

27089

21135

Current ratio for the year 2015= current assets/current liabilities = 23031/17578= 1.31
Current ratio for the year 2016= current assets/current liabilities = 27089/21135= 1.28
Inventory turnover
COG ($ millions)

Average inventory($
millions)

2015

28,731

2,720

2016

28,209

2,723

Inventory turnover for the year 2015= COG/average inventory = 28731/2720= 10.56
Inventory turnover for the year 2015= COG/average inventory = 28209/2723= 10.36
Since the company’s current ...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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