Compute the following financial ratios for Pepsico. Show your calculations on a
ID: 2593663 • Letter: C
Question
Compute the following financial ratios for Pepsico. Show your calculations on a separate sheet of paper and turn in your work.To solve Use PepsiCo's ANNUAL REPORTINGS for 2015 and 2016 that are posted on their website http://www.pepsico.com/Investors/Annual-Reports-and-Proxy-Information
a.asset turnover ratio:2015________,2016________
b.Rate of return on total assets:2015_________,2016__________
b.rate of return of common Stockholders Equity:2015_________,2016_________
d.Earnings per share-Basic(on income statement):2015__________,2016__________
e.Earnings per share-Basic(on income statement):2015_________,2016_________
F. Comment on the firms ability to earn a return on its assets, efficiency of use of its assets, and its ability to earn a profit for its stockholders.
Explanation / Answer
= 63056/((69667+70509)/2)
= 0.90 times
=62799/((74129+69677)/2)
= 0.87 times
= 8353/69667
= 11.9%
= 9785/74129
= 13.2%
= 5452/14823
= 36.78%
= 6329/11657
= 54.29%
= 5452/1469
= $3.71
= 6329/1439
= $4.39
S.no Ratio Formula 2015 2016 a) Asset turnover ratio Net sales / avergae total assets= 63056/((69667+70509)/2)
= 0.90 times
=62799/((74129+69677)/2)
= 0.87 times
b) Return on total assets EBIT / total assets= 8353/69667
= 11.9%
= 9785/74129
= 13.2%
c) Rate of return on common stockholders equity Net income / Average stockholders equity= 5452/14823
= 36.78%
= 6329/11657
= 54.29%
d) Earnings per share(basic) Net income / outstanding shares (basic)= 5452/1469
= $3.71
= 6329/1439
= $4.39
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