Refer to the 2004 segment information for PepsiCo given in Exhibit 19-4. 1. Compute operating profit margin
Question:
Refer to the 2004 segment information for PepsiCo given in Exhibit 19-4.
1. Compute operating profit margin (Operating profit/Net revenue) for 2004 for each of the following:
(a) Frito-Lay North America
(b) PepsiCo Beverages North America
(c) PepsiCo International
(d) Quaker Foods North America
2. For each of the segments listed in (1), compute asset turnover (Net sales/Total assets).
3. Given your calculations in (1) and (2), what is your analysis of the different segments of PepsiCo?
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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