Pepsico, A Global Food And Beverage Leader

1950 WordsApr 11, 20158 Pages
Introduction PepsiCo, a global food and beverage leader, is the second largest soft drink business in the world. Initially called ‘Brad 's Drink’, Pepsi was created in 1893 by a pharmacist named Caleb Bradham. In the 1960’s, PepsiCo was established through the merger of Pepsi-Cola and Frito-Lay. PepsiCo today is a world leader in convenient snacks, foods, and beverages, with more than 280,000 employees and revenue reaching over $60 billion (PepsiCo, n.d.). To determine the current condition and future prospects of PepsiCo, a complete financial analysis will provide a clear representation of the financial health of the company. The analysis will be based on the company’s income statement, balance sheet, statement of cash flow and financial statement ratios from year 2010 to year 2013. The company financials will be compared to industry averages and current events will be examined to explain financial decisions within PepsiCo and the beverage industry itself. Finally, forecast and growth information will be analyzed to determine if the company’s performance is expected to thrive for the “next generation”. Analysis of Income Statement The income statement contains financial information figures such a total revenue, net income and earnings per share. The net revenue displays how much money the company has earned. PepsiCo’s net revenue for 2013 was reported as $66,415 million, an increase from 2012. The net income is calculated by subtracting the company’s expenses
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