Perform a Financial Ratio Analysis for PepsiCo

Purpose

Financial ratio analysis is one of the best techniques for identifying and evaluating internal strengths and weaknesses. Potential investors and current shareholders look closely at firms' financial ratios making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix.

Instructions

Step 1: Referring to PepsiCo's income statement and balance sheet. Calculate 20 financial ratios for 2012 for the company.

Step 2: In a second column, indicate whether you consider each ratio to be strength, a weakness. or a neutral factor for PepsiCo.

Step 3: Calculate PepsiCo's financial ratios, without your having to pay a subscription (fee) for the service. Make a copy of the ratio information provided and record the source. Report this research to your classmates and your professor.