Financial Analysis Report of the Pepsi百事可樂(lè)財(cái)務(wù)分析報(bào)告

(ByConley)TeamworkOfAccountingCourseFinancialAnalysisReportofthePepsiStudent1:XXXXXXXXXXXXStudent2:XXXXXXXXXXXXContentsPreface 3Part1FinancialStatementofthePepsi 3IncomeStatementofPepsi 3ThestatementofcashflowofPepsi 3BalancesheetofPepsi 4ThestatementofCommonShareholders’Equity 6Part2FinancialAnalysisofPepsi 6Dollarandpercentagechanges 6Trendpercentagesoftrendanalysis 8Componentpercentage 8Ratios 9Profitability 9Liquidity 10Solvency 11Efficiency 12PART3ComparisonbetweenPepsiandCocaCola 13Profitabilityratioscomparison 13Efficiencyratiocomparison 14PART4ReviewreportaboutAccountingcourseandsomesuggestionstothecourse 14ReviewreportaboutAccountingcourse 14Somesuggestions 14Reference 15PrefaceThisfinancialanalysisreportofPepsiismainlyfocusontheprobabilityandefficiencyratiocalculations,aswellasthesimplecomparisonwiththeCocaColaCompany.Inaddition,thedataofthisreportiscollectedfromtheannualreportin2007.Part1FinancialStatementofthePepsiIncomeStatementofPepsiFiscalyearsendedDec.29,2007,Dec.30,2006andDEC.31,2005ThestatementofcashflowofPepsiFiscalyearsendedDec.29,2007,Dec.30,2006andDEC.31,2005BalancesheetofPepsiFiscalyearsendedDec.29,2007,Dec.30,2006ThestatementofCommonShareholders’EquityFiscalyearsendedDec.29,2007,Dec.30,2006Part2FinancialAnalysisofPepsiDollarandpercentagechangesThedollarandpercentagechangesoftheassets,liabilitiesandequitiesinbalancesheetareshowninsheetasfollow.2006isthebaseyearincalculation.Fromtheresultsofthecalculationwecaneasilyknowthetotalcurrentassetsariseby11.2%,totalassetsariseby15.7%,totalliabilitiesandequityariseby15.7%,sothecompanyactuallydidn’timprovesomuch.Besides,wecanknowthecashequivalentdecreasedby44.8%whiletheshort-terminvestmentariseby34.2%,whichmeansthatthecompanyconvertthecashtoshortinvestmentorotherplans.TrendpercentagesoftrendanalysisTheseratiosduringthreeyearsrevealpatternsindatawhichcoverssuccessiveperiod.Fromthegraphwecaneasilyknowtheexpense,cost,andrevenueareallgrow,butthesalescostandexpensesgrowsfasterthanrevenue.Weusethetrendpercentagestoconstructagraphtoseethetrendoverthisthreeyears.ComponentpercentageCommon-sizedpercentagesinBalancesheetofPepsiCommon-sizedpercentagesinIncomestatementofPepsiRatiosAlongwithdollarandpercentageschanges,trendpercentages,andcommon-sizedpercentages,ratioscanbeusedtocomparepastperformanceandothercompaniestoourcompany.SomeratiosofPepsiarecalculatedheretoanalyze.ProfitabilityWewillusetheinformationasfollowtocalculatetheprofitabilityratioforPepsiin2007andsomeresultsarecalculatedinthetable.ProfitabilityRatioscalculation:ProfitMargindescribestheabilitytoearnnetincomefromeachsalesdollar,fromthecalculatedresultweknowtheabilityofitisnotverywell,andwecaninformthatthePepsiearnincomemainlybyagreatamountsofsales.ROAwith0.222isagoodsignalthatthePepsihasagoodprofitability.TheROE,EPS,andPEallshowthatthePepsiisagoodprofitablecompany.LiquidityWewillusetheinformationasfollowtocalculatetheliquidityratioforPepsiin2007andsomeresultsarecalculatedinthetable.cLiquidityRatioscalculation:ThePepsihaspositiveworkingcapitalwhichmeansthatthecurrentassetsexcessescurrentliabilities.Besides,currentratio,quickratio,andacid-testratioallhavebigvalue,sothePepsihasagoodliquidity.SolvencyWewillusetheinformationasfollowtocalculatethesolvencyratioforPepsiin2007andsomeresultsarecalculatedinthetable.Fromtheratioswecanseedebt-to-equityratioissmall,sothecompanyhasmoreopportunitytoexpandthroughofdebtfinancing.EfficiencyWewillusetheinformationasfollowtocalculatethesolvencyratioforefficiencyin2007andsomeresultsarecalculatedintheexcel.Totalassetturnoverwith1.2223showsthatthePepsihasadegreeabilitytouseitsassetstogeneratesales.AccountsreceivableturnoverratemeansthePepsineeds9.73timestoconvertsitsreceivableintocasheachyear.Inaddition,thecompanycollectsitsaccountsreceivablewiththefrequencyof0.111,andsalesandreplacesitsmerchandiseinventory8.557timeseachyear.Fromtheday’ssaleininventoryweknowthedemandedproductishardtosellforittakes46.338timestomakeit.However,thePepsiisefficientcompanyoverall.PART3ComparisonbetweenPepsiandCocaColaHerewemakeacomparisonbyprofitabilityandefficiencyratiosbetweenPepsiandCocaCola.ThedataofCocaColaisasfollow.ProfitabilityratioscomparisonFromthetableaboveweknowthattheProfitMarginofCocaColaislargerthanPepsi,whichmeansthatCocaColahasagreatabilitytoearnincomethanPepsi.Besides,theROAofCocaColaisalsobiggerthanPepsi.ButtheearningpershareandROEissmallerthanthePepsi.SoweknowthatCocaColahasagreatprofitabilitythanPepsi,whilePepsicangaingreaterincometoitsshareholders.EfficiencyratiocomparisonFromthetablewegettheinformationthattheTotalAssetsTurnover,InventoryTurnoverrate,andofPepsiarebiggerthanCocaCola.Inaddition,theDays’salesInInventoryofCocaColaismuchbiggerthanPepsi.AlltheseinformationshowthatthePepsiismoreefficient.PART4ReviewreportaboutAccountingcourseandsomesuggestionstothecourseReviewreportaboutAccountingcourseAccountingiscrucialinourinformationage.InourAccountingcourse,wediscussedtheimportanceofaccountingtodifferenttypesoforganizationanddescribedtheacceptdaccountingprinciples.Atthesametimewelearnedthefinancialstatementsandmasteredthemethodtomakejournalentries.What’smore,welearnedtheadjustmenttojournalentiesandclosingtheaccountingcycle.Duringthelastsemi-termwefocusedonthedetailsofassets,liabilitiesandequity.Thewholeprocedureofaccountingcoursewasverymeaningfulandusefulthoughitsometimesmightbehardanddull.SomesuggestionsTheaccountingcourseisgoodoverall.However,therearestillsomedetailsthatbothteacher