Financial Analysis PepsiCo (PEP) $7,120M Net Income Quick ROA ROE Total Revenue 0.81 0.08 0.53 $70B Suggested Action A recommendation for PEP is to reduce its dependence on Walmart. Walmart is PEP largest customer as its sales contribute 14 percent of PEP total net revenue (PepsiCo, 2021d). Therefore, Walmart may easily demand at certain prices of PEP products. It leaves PEP with a low profit a margin. This recommended action allows PEP to gain a high profit margin. PEP could sell more product through Walmart competitor to reduce its dependence on Walmart. When PEP is not dependence on Walmart, Walmart would not simply request at low price of PEP products. It makes PEP has more profit margin to grow. This will also allow PEP to use its profits more effectively. An example PEP would be maintaining its competitive advantage by using the profits to development healthy beverages to fulfill public preferences. Additionally, this recommended action prevents PEP face huge loss on its revenue once Walmart decrease its sales on PEP products. Besides that, PEP will gain more profits through expand market by reduce its dependence on Walmart as PEP need to find more customers to replace Walmart