Compute the five component ratios of a decomposition of ROE for Pepsicos fiscal years 2013-2017 (present your results) What patterns do you see?

Compute the year-to-year change in Revenues and Operating profit for each of Pepsicos segments (present your results) What patterns do you see?

Compute the operating margin for each of Pepsicos segments (present your results).

Compute the year-to-year change in operating margin for each of Pepsicos segments (present your results) What patterns to you see?

STATEMENT OF FINANCIAL POSITION Fiscal Year: 2013 2014 2015 2016 2017 (FYR Ending): (31 DEC2013 ) (31 DEC2014) (31 DEC2015) (31 DEC2016 ) (31 DEC2017) ASSETS 9,678.000 8,726.000 12,009.000 16,125.000 19,510.000 Cash & Equivalents Receivables - Total (Net) 6,954.000 6,651.000 6,437.000 6,694.000 7,024.000 Inventories - Total 3,409.000 3,143.000 2,720.000 2,723.000 2,947.000 Current Assets - Other 2,162.000 2,143.000 1,865.000 1,547.000 1,546.000 Current Assets - Total 22,203.000 20,663.000 23,031.000 27,089.000 31,027.000 36,961.000 36,300.000 35,747.000 36,818.000 39,106.000 18,386.000 19,056.000 19,430.000 20,227.000 21,866.000 Plant, Property & Equip (Gross) Accumulated Depreciation Plant, Property & Equip (Net) Investments at Equity Investments and Advances - Other 18,575.000 17,244.000 16,317.000 16,591.000 17,240.000 1,841.000 2,689.000 2,311.000 1,950.000 2,042.000 887.000 93.000 140.000 105.000 59.000 Intangibles 32,652.000 29,053.000 27,258.000 27,863.000 28,582.000 Deferred Charges 214.000 179.000 159.000 140.000 134.000 Assets - Other 1,106.000 588.000 451.000 391.000 720.000 TOTAL ASSETS 77,478.000 70,509.000 69,667.000 74,129.000 79,804.000 LIABILITIES Accounts Payable 4,874.000 5,127.000 5,546.000 6,158.000 6,727.000 3,082.000 980.000 962.000 2,491.000 1,465.000 Notes Payable Accrued Expenses Debt (Long-Term) Due In One Year 4,034.000 3,968.000 4,078.000 4,214.000 4,175.000 2,224.000 4,096.000 3,109.000 4,401.000 4,020.000 Other Current Liabilities 3,625.000 3,921.000 3,883.000 3,871.000 4,115.000 Total Current Liabilities 17,839.000 18,092.000 17,578.000 21,135.000 20,502.000 Long Term Debt 24,333.000 23,821.000 29,213.000 30,053.000 33,796.000 Deferred Taxes (Balance Sheet) 5,986.000 5,304.000 4,959.000 5,073.000 3,242.000 Liabilities - Other 4,931.000 5,744.000 5,887.000 6,669.000 11.283.000 TOTAL LIABILITIES 53,089.000 52,961.000 57,637.000 62,930.000 68,823.000 SHAREHOLDERS' EQUITY Preferred Stock 41.000 41.000 41.000 41.000 41.000 Common Stock 25.000 25.000 24.000 24.000 24.000 4,095.000 4,115.000 4,076.000 4,091.000 3,996.000 41,293.000 38,423.000 37,153.000 38,599.000 39,782.000 Capital Surplus Retained Eamings (Net Other) Less: Treasury Stock Shareholders Equity - Parent Noncontrolling Interest - Nonredeemable 21,175.000 25,166.000 29,371.000 31,660.000 32,954.000 24,279.000 17,438.000 11,923.000 11,095.000 10,889.000 110.000 110.000 107.000 104.000 92.000 TOTAL SHAREHOLDERS EQUITY 24,389.000 17,548.000 12,030.000 11,199.000 10,981.000 TOTAL LIABILITIES AND EQUITY 77,478.000 70,509.000 69,667.000 74,129.000 79,804.000 INCOME STATEMENT Fiscal Year: 2013 2014 2015 2016 2017 (FYR Ending): (31 DEC2013) (31 DEC2014) (31 DEC2015) (31 DEC2017) (31 DEC2016) 62,799.000 Sales (Net) 66,415.000 66,683.000 63,056.000 63,525.000 Cost of Goods Sold 28,771.000 28,443.000 26,136.000 25,911.000 26,484.000 Gross Profit 37,644.000 38,240.000 36,920.000 36,888.000 37,041.000 25,060.000 25,582.000 24,455.000 24,190.000 23,852.000 12,584.000 12,658.000 12,465.000 12,698.000 13,189.000 Selling, General, & Admin Expenses Operating Income Before Depreciation Depreciation, Depletion, & Amortiz Operating Income After Depreciation 2,582.000 2,533.000 2,323.000 2,368.000 2,369.000 10,002.000 10,125.000 10,142.000 10,330.000 10,820.000 Interest Expense 911.000 909.000 970.000 1,109.000 1,151.000 Non-Operating Income/Expense 97.000 85.000 59.000 110.000 244.000 Special Items -297.000 -544.000 -1,789.000 -778.000 -311.000 Pretax Income 8,891.000 8,757.000 7,442.000 8,553.000 9,602.000 Income Taxes - Total 2,104.000 2,199.000 1,941.000 2,174.000 4,694.000 Minority Interest 47.000 45.000 49.000 50.000 51.000 Income Before EI&DO 6,740.000 6,513.000 5,452.000 6,329.000 4,857.000 Net Income (Loss) 6,740.000 6,513.000 5,452.000 6,329.000 4,857.000 Income Before El&DO 6,740.000 6,513.000 5,452.000 6,329.000 4,857.000 Preferred Dividends 1.000 1.000 1.000 1.000 .000 Available for Common Before El&DO 6,739.000 6,512.000 5,451.000 6,328.000 4.857.000 Common Stock Equivalents - Savings -7.000 -9.000 -5.000 -5.000 -4.000 Adjusted Available for Common 6,732.000 6,503.000 5,446.000 6,323.000 4,853.000 EARNINGS PER SHARE EPS - Primary, Excluding EI&DO 4.370 4.310 3.710 4.390 3.400 COMMON SHARES Common Shares for Primary EPS Calculation 1,541.000 1,509.000 1,469.000 1,439.000 1,425.000 Pepsico 12 Weeks Ended 9/5/15 12/26/15 3/19/16 6/11/16 9/3/16 12/31/16 3/25/17 6/17/2017(a) 9/9/17 12/30/17 3/24/18 6/16/18 $ 3,555 583 5,360 2,283 2,918 1,632 16,331 4,456 775 5,847 2,307 3,283 1,917 18,585 3,418 617 4,361 1,042 1,359 1,065 11,862 3,564 3,676 561 571 5,145 5,518 1,717 1,762 2,660 2,864 1,748 1,636 15,395 16,027 4,891 3,499 815 598 6,288 4,460 2,299 1,077 3,333 1,445 1,889 970 19,515 12,049 3,678 3,792 553 578 5,242 5,332 1,823 1,873 2,812 3,098 1,602 1,567 15,710 16,240 4,829 774 5,902 2,435 3,695 1,891 19,526 3,617 601 4,415 1,224 1,668 1,037 12,562 3,837 527 5,193 1,843 3,116 1,574 16,090 $ Net Revenue Frito-Lay North America Quaker Foods north America North American Beverages Latin America Europe, Sub-Saharan Africa Asia, Middle East, and North Africa Total Net Revenue Operating Profit Frito-Lay North America Quaker Foods north America North American Beverages Latin America Europe, Sub-Saharan Africa Asia, Middle East, and North Africa Corporate Unallocated Total Operating Profit $ 1,085 150 1,292 179 1,018 166 485 1,083 146 1,148 144 1,410 197 1,050 163 1,050 155 1,200 145 1,143 145 890 228 639 881 689 501 388 747 904 247 223 133 214 221 860 (994) 398 199 (282) 1,416 316 1,208 146 817 291 436 267 (162) 2,993 175 67 (148) (144) 1,619 1,402 186 491 267 315 328 (396) 2,593 242 337 383 (106) 2,964 139 (444) 2,240 388 264 (274) 2,821 120 (574) 2,381 96 171 (251) 1,863 492 307 (286) 2,919 189 118 187 (280) 1,807 269 438 496 (267) 3,028 $ STATEMENT OF FINANCIAL POSITION Fiscal Year: 2013 2014 2015 2016 2017 (FYR Ending): (31 DEC2013 ) (31 DEC2014) (31 DEC2015) (31 DEC2016 ) (31 DEC2017) ASSETS 9,678.000 8,726.000 12,009.000 16,125.000 19,510.000 Cash & Equivalents Receivables - Total (Net) 6,954.000 6,651.000 6,437.000 6,694.000 7,024.000 Inventories - Total 3,409.000 3,143.000 2,720.000 2,723.000 2,947.000 Current Assets - Other 2,162.000 2,143.000 1,865.000 1,547.000 1,546.000 Current Assets - Total 22,203.000 20,663.000 23,031.000 27,089.000 31,027.000 36,961.000 36,300.000 35,747.000 36,818.000 39,106.000 18,386.000 19,056.000 19,430.000 20,227.000 21,866.000 Plant, Property & Equip (Gross) Accumulated Depreciation Plant, Property & Equip (Net) Investments at Equity Investments and Advances - Other 18,575.000 17,244.000 16,317.000 16,591.000 17,240.000 1,841.000 2,689.000 2,311.000 1,950.000 2,042.000 887.000 93.000 140.000 105.000 59.000 Intangibles 32,652.000 29,053.000 27,258.000 27,863.000 28,582.000 Deferred Charges 214.000 179.000 159.000 140.000 134.000 Assets - Other 1,106.000 588.000 451.000 391.000 720.000 TOTAL ASSETS 77,478.000 70,509.000 69,667.000 74,129.000 79,804.000 LIABILITIES Accounts Payable 4,874.000 5,127.000 5,546.000 6,158.000 6,727.000 3,082.000 980.000 962.000 2,491.000 1,465.000 Notes Payable Accrued Expenses Debt (Long-Term) Due In One Year 4,034.000 3,968.000 4,078.000 4,214.000 4,175.000 2,224.000 4,096.000 3,109.000 4,401.000 4,020.000 Other Current Liabilities 3,625.000 3,921.000 3,883.000 3,871.000 4,115.000 Total Current Liabilities 17,839.000 18,092.000 17,578.000 21,135.000 20,502.000 Long Term Debt 24,333.000 23,821.000 29,213.000 30,053.000 33,796.000 Deferred Taxes (Balance Sheet) 5,986.000 5,304.000 4,959.000 5,073.000 3,242.000 Liabilities - Other 4,931.000 5,744.000 5,887.000 6,669.000 11.283.000 TOTAL LIABILITIES 53,089.000 52,961.000 57,637.000 62,930.000 68,823.000 SHAREHOLDERS' EQUITY Preferred Stock 41.000 41.000 41.000 41.000 41.000 Common Stock 25.000 25.000 24.000 24.000 24.000 4,095.000 4,115.000 4,076.000 4,091.000 3,996.000 41,293.000 38,423.000 37,153.000 38,599.000 39,782.000 Capital Surplus Retained Eamings (Net Other) Less: Treasury Stock Shareholders Equity - Parent Noncontrolling Interest - Nonredeemable 21,175.000 25,166.000 29,371.000 31,660.000 32,954.000 24,279.000 17,438.000 11,923.000 11,095.000 10,889.000 110.000 110.000 107.000 104.000 92.000 TOTAL SHAREHOLDERS EQUITY 24,389.000 17,548.000 12,030.000 11,199.000 10,981.000 TOTAL LIABILITIES AND EQUITY 77,478.000 70,509.000 69,667.000 74,129.000 79,804.000 INCOME STATEMENT Fiscal Year: 2013 2014 2015 2016 2017 (FYR Ending): (31 DEC2013) (31 DEC2014) (31 DEC2015) (31 DEC2017) (31 DEC2016) 62,799.000 Sales (Net) 66,415.000 66,683.000 63,056.000 63,525.000 Cost of Goods Sold 28,771.000 28,443.000 26,136.000 25,911.000 26,484.000 Gross Profit 37,644.000 38,240.000 36,920.000 36,888.000 37,041.000 25,060.000 25,582.000 24,455.000 24,190.000 23,852.000 12,584.000 12,658.000 12,465.000 12,698.000 13,189.000 Selling, General, & Admin Expenses Operating Income Before Depreciation Depreciation, Depletion, & Amortiz Operating Income After Depreciation 2,582.000 2,533.000 2,323.000 2,368.000 2,369.000 10,002.000 10,125.000 10,142.000 10,330.000 10,820.000 Interest Expense 911.000 909.000 970.000 1,109.000 1,151.000 Non-Operating Income/Expense 97.000 85.000 59.000 110.000 244.000 Special Items -297.000 -544.000 -1,789.000 -778.000 -311.000 Pretax Income 8,891.000 8,757.000 7,442.000 8,553.000 9,602.000 Income Taxes - Total 2,104.000 2,199.000 1,941.000 2,174.000 4,694.000 Minority Interest 47.000 45.000 49.000 50.000 51.000 Income Before EI&DO 6,740.000 6,513.000 5,452.000 6,329.000 4,857.000 Net Income (Loss) 6,740.000 6,513.000 5,452.000 6,329.000 4,857.000 Income Before El&DO 6,740.000 6,513.000 5,452.000 6,329.000 4,857.000 Preferred Dividends 1.000 1.000 1.000 1.000 .000 Available for Common Before El&DO 6,739.000 6,512.000 5,451.000 6,328.000 4.857.000 Common Stock Equivalents - Savings -7.000 -9.000 -5.000 -5.000 -4.000 Adjusted Available for Common 6,732.000 6,503.000 5,446.000 6,323.000 4,853.000 EARNINGS PER SHARE EPS - Primary, Excluding EI&DO 4.370 4.310 3.710 4.390 3.400 COMMON SHARES Common Shares for Primary EPS Calculation 1,541.000 1,509.000 1,469.000 1,439.000 1,425.000 Pepsico 12 Weeks Ended 9/5/15 12/26/15 3/19/16 6/11/16 9/3/16 12/31/16 3/25/17 6/17/2017(a) 9/9/17 12/30/17 3/24/18 6/16/18 $ 3,555 583 5,360 2,283 2,918 1,632 16,331 4,456 775 5,847 2,307 3,283 1,917 18,585 3,418 617 4,361 1,042 1,359 1,065 11,862 3,564 3,676 561 571 5,145 5,518 1,717 1,762 2,660 2,864 1,748 1,636 15,395 16,027 4,891 3,499 815 598 6,288 4,460 2,299 1,077 3,333 1,445 1,889 970 19,515 12,049 3,678 3,792 553 578 5,242 5,332 1,823 1,873 2,812 3,098 1,602 1,567 15,710 16,240 4,829 774 5,902 2,435 3,695 1,891 19,526 3,617 601 4,415 1,224 1,668 1,037 12,562 3,837 527 5,193 1,843 3,116 1,574 16,090 $ Net Revenue Frito-Lay North America Quaker Foods north America North American Beverages Latin America Europe, Sub-Saharan Africa Asia, Middle East, and North Africa Total Net Revenue Operating Profit Frito-Lay North America Quaker Foods north America North American Beverages Latin America Europe, Sub-Saharan Africa Asia, Middle East, and North Africa Corporate Unallocated Total Operating Profit $ 1,085 150 1,292 179 1,018 166 485 1,083 146 1,148 144 1,410 197 1,050 163 1,050 155 1,200 145 1,143 145 890 228 639 881 689 501 388 747 904 247 223 133 214 221 860 (994) 398 199 (282) 1,416 316 1,208 146 817 291 436 267 (162) 2,993 175 67 (148) (144) 1,619 1,402 186 491 267 315 328 (396) 2,593 242 337 383 (106) 2,964 139 (444) 2,240 388 264 (274) 2,821 120 (574) 2,381 96 171 (251) 1,863 492 307 (286) 2,919 189 118 187 (280) 1,807 269 438 496 (267) 3,028 $