Question
Compute the five component ratios of a decomposition of ROE (net profit margin, total asset turnover, return on assets, financial leverage, return on equity) for
Compute the five component ratios of a decomposition of ROE (net profit margin, total asset turnover, return on assets, financial leverage, return on equity) for PepsiCos fiscal years 2015-2022 (present your results you may also want to attach the spreadsheet in which you make these and the following calculations)
What patterns do you see? What are the implications of these patterns?
Compute each business segments revenue as a percentage of total revenues by quarter.
Ignoring seasonality (i.e., intra-year fluctuations), what patterns do you see? What are the implications of these patterns?
Compute the operating margin percentage, by quarter, for each of the business segments (present your results).
Ignoring seasonality, what patterns do you see? What are the implications of these patterns?
Compute the year-to-year, same-quarter to same-quarter change in Revenues for each of the business segments (present your results).
What patterns to you see? What are the implications of these patterns?
Compute the year-to-year, , same-quarter to same-quarter change in operating margin percentage (operating profit / net revenue), for each of the segments (present your results).
What patterns to you see? What are the implications of these patterns?
Which segment(s) are positively (negatively) influencing PepsiCos recent performance? What are the implications of this?
What does your analysis indicate regarding PepsiCos future performance?
To facilitate your analysis, the data below are inserted into this document as an Excel Object. Click / double-click on the data and it should open in Excel.
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