Evaluate pepsico profitability


Refer to Pepsico

Problem 1) Make a 5 year trend analysis, using 2001 as the base year of (1) net sales, (2 ) net income. Comment on the significance of the trend results.

Problem 2) Compute for 2005 and 2004 the (1) profit margin (2) asset turnover (3) return on assets, and (4) return on common stockholders' equity. How would you evaluate PepsiCo's profitability? Total assets at Dec 27, 2003, were $25,327, and total stockholders' equity at Dec 27, 2003, was $11, 896.

Problem 3) Compute for 2005 and 2004 the (1) debt to total assets and (2) times interest earned ratio. How would you evaluate PepsiCo's long term solvency?

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Finance Basics: Evaluate pepsico profitability
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