Horizontal Analysis - PepsiCo (as of December 26, 2020)
- Use the horizontal analysis tab from the Excel portion of the assignment to answer these questions.
- What trend do you notice about your companys key income statement items over the last three years (i.e. current year and two prior years)? How are each of these key accounts changing? What does this tell you about the company does this indicate a good or bad trend?
- What trend do you notice about your companys key balance sheet items over the last three years (i.e. current year and two prior years)? How are each of these key accounts changing? What does this tell you about the company does this indicate a good or bad trend?
Pepsico Balance Sheet Items Inventory Current Assets Property, Plant, and Equipment (net) Total Assets Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity Common Shares Outstanding Income Statement Items Net Sales Cost of Goods Sold Gross Profit Other Operating Expenses Net Income Interest Expense Income Tax Expense Statement of Retained Earnings Total Cash Dividends Preferred Stock Cash Dividends Common Stock Cash Dividends Cash Flow Statement Net Cash Provided by Operating Activities Capital Expenditures Other Market Price Per Share 2020 Table B: Horizontal Analysis 2019 2018 Pepsico 4,172 3,338 3,128 Base Year: 23,001 17,645 2020 2019 21,369 19,305 Income Statement Items 92,918 78,547 77,648 Net Sales 103 87% 23,372 20,461 108 83% 108 22% 102 56% Cost of goods sold Other Operating Expenses 55,994 43,218 113 21% 106 23% 79,366 63,679 Balance Sheet Items 13,552 14,868 14,602 Inventory 133 38% 119 67% 106 71% 101 16% 92,918 78,547 Total Assets 1,380 1,391 1,409 70,372 67,161 64,661 31,797 30,132 29,381 38,575 37,029 2020 2019 28,495 26,738 25,170 Income Statement Items 7,175 7,353 Net Income 10.20% 10.95% 1,128 935 Cost of goods sold 45.18% 44.87% 1,894 1,959 Balance Sheet Items Current Assets 24.75% 22.46% 5,5891 5,323 24.58% Property, Plant, and Equipment (ne 23.00% Current Liabilities 0 0 29.45% 32.13% 5,589 5,323 Long-term Liabilities 70.55% 67.87% Stockholders' Equity 14.58% 18.93% 10,613 9,649 6,372 2,717 145.06 137.54 2020 2019 Working Capital (371) (2,816) Current Ratio 0.98 0.86 Inventory Turnover 8.47 9.32 Days in Inventory 43.10 39.16 0.85 0.81 Debt to Asset Ratio Times Interest Earned Free Cash Flow 9.04 10.96 (1,348) 1,609 $5.18 $5.25 Earnings Per Share Price-Earnings Ratio Gross Profit Rate 28.01 26.19 0.55 0.55 Profit Margin 0.10 0.11 Return on Assets 0.08 0.09 Asset Turnover 0.82 0.86 Payout Ratio 0.78 0.72 Return on Common Stockholders' 0.50 0.50 Liquidity Ratios Solvency Ratios Profitability Ratios Table C: Vertical Analysis Pepsico Table D: Ratio Analysis Pepsico 2018 2018 100.00% 100.00% 100.00% 100.00% 100.00% Pepsico Balance Sheet Items Inventory Current Assets Property, Plant, and Equipment (net) Total Assets Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity Common Shares Outstanding Income Statement Items Net Sales Cost of Goods Sold Gross Profit Other Operating Expenses Net Income Interest Expense Income Tax Expense Statement of Retained Earnings Total Cash Dividends Preferred Stock Cash Dividends Common Stock Cash Dividends Cash Flow Statement Net Cash Provided by Operating Activities Capital Expenditures Other Market Price Per Share 2020 Table B: Horizontal Analysis 2019 2018 Pepsico 4,172 3,338 3,128 Base Year: 23,001 17,645 2020 2019 21,369 19,305 Income Statement Items 92,918 78,547 77,648 Net Sales 103 87% 23,372 20,461 108 83% 108 22% 102 56% Cost of goods sold Other Operating Expenses 55,994 43,218 113 21% 106 23% 79,366 63,679 Balance Sheet Items 13,552 14,868 14,602 Inventory 133 38% 119 67% 106 71% 101 16% 92,918 78,547 Total Assets 1,380 1,391 1,409 70,372 67,161 64,661 31,797 30,132 29,381 38,575 37,029 2020 2019 28,495 26,738 25,170 Income Statement Items 7,175 7,353 Net Income 10.20% 10.95% 1,128 935 Cost of goods sold 45.18% 44.87% 1,894 1,959 Balance Sheet Items Current Assets 24.75% 22.46% 5,5891 5,323 24.58% Property, Plant, and Equipment (ne 23.00% Current Liabilities 0 0 29.45% 32.13% 5,589 5,323 Long-term Liabilities 70.55% 67.87% Stockholders' Equity 14.58% 18.93% 10,613 9,649 6,372 2,717 145.06 137.54 2020 2019 Working Capital (371) (2,816) Current Ratio 0.98 0.86 Inventory Turnover 8.47 9.32 Days in Inventory 43.10 39.16 0.85 0.81 Debt to Asset Ratio Times Interest Earned Free Cash Flow 9.04 10.96 (1,348) 1,609 $5.18 $5.25 Earnings Per Share Price-Earnings Ratio Gross Profit Rate 28.01 26.19 0.55 0.55 Profit Margin 0.10 0.11 Return on Assets 0.08 0.09 Asset Turnover 0.82 0.86 Payout Ratio 0.78 0.72 Return on Common Stockholders' 0.50 0.50 Liquidity Ratios Solvency Ratios Profitability Ratios Table C: Vertical Analysis Pepsico Table D: Ratio Analysis Pepsico 2018 2018 100.00% 100.00% 100.00% 100.00% 100.00%
