Pepsi week 4 part 2.docx - Laurie L Freeman FIN-302 SNHU...

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Laurie L. Freeman FIN-302 SNHU 03/29/2019
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The current ratio for healthy companies is usually between a 1 and 3. The higher the current ratio is towards a 3 shows that the company can pay for its obligations. When a company’s current ratio falls under a 1 this shows that the company would be unable to pay or struggle to pay its obligations. For Pepsico the current ratio for 2018 was .99, 2017 was 1.51, and 2016 was 1.25 indicating that for the years of 2016 and 2017 Pepsico had no issues with being able to pay their obligations however in 2018 their .99 ratio shows that it may have became a struggle. Debt to equity ratio compares a company’s debt to their equity. This shows what percent of the company’s financing is coming from creditors and investors. The higher the number the more the financing is coming from creditors over investors. The lower the number the more stable the business is financially because it shows that financially the business along with investors can take care of itself without borrowing. With Pepsico the debt to equity ratio for 2018
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  • Winter '17
  • Paltrow
  • Finance, Dividend, Financial Ratio, P/E ratio

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