BYP2 - ROA=4212/(27,987+25,327/2) ROA=4212/26,657 ROA=15.8%

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For 2005 (In Millions) Profit Margin= Net Income/ Net Sales PF=4078/32,562 PF=12.5% Asset Turnover= Net Sales/Average Assets AT=32,562/(31,727+27,987/2) AT=32,562/29,857 AT=1.09 Return on Assets= Net Income/Average Assets ROA= 4078/(31,727+27,987/2) ROA=4078/29,857 ROA=13.7% Return on common SE= Net Income/Average Common SE RcSE=4078/(14,320+13572/2) RcSE=4078/13,946 RcSE=29.2% For 2004 ( In Millions) PF=4,212/29,261 PF=14.4% AT=29,261/(27,987+25,327/2) AT=29,261/26,657 AT=1.10
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Unformatted text preview: ROA=4212/(27,987+25,327/2) ROA=4212/26,657 ROA=15.8% RcSE=4212/(13,572+11,896/2) RcSE= 4212/12,734 RcSE=33% With the information that we were given to evaluate, we can say that PepsiCo is a pretty steady company. Their profit margins are in the teens, which make them comfortable. The return on common stock shareholders equity is at a pretty comfortable rate as well. We would tell our parents that PepsiCo is a solid company....
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This note was uploaded on 05/06/2010 for the course BUAD Buad 381 taught by Professor Proctor during the Spring '10 term at Morgan.

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