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Pepsico - a Financial Analysis

In: Business and Management

Submitted By dj4710
Words 5080
Pages 21
PepsiCo, Inc.
Part 1: Analysis of Financial Performance

By: Randal D. Jenkin
Columbia College
BUSI 570 Managerial Finance
Professor: Dr. Diane Suhler
March 2014

Table of Contents

Brief History 3
Balance Sheet 4
Income Statement 5
Cash Flow Statement 5
Liquidity 6
Profitability 6
Leverage 7
Working Capital 7
DuPont Analysis 8
Industry Analysis 9
Summary 11
Resources 12
Appendix 13

History PepsiCo is a large, international food and beverage conglomerate headquartered in New York that began as a soft-drink company. The formula for Pepsi-Cola was created by pharmacist Caleb Bradham in 1898 and the Pepsi-Cola Company was formed in 1902 as the drink began to grow in popularity. Bradham registered a patent for the formula of Pepsi-Cola in 1903, but the company went bankrupt during the Great Depression in 1931. That same year, the trademark and recipe for Pepsi-Cola were purchased by Charles Goth, the president of the Loft Candy Company and Pepsi was rebranded and distributed through Loft’s chain of retail candy and ice cream stores. Loft spun their retail stores off and began to focus solely on Pepsi-Cola and developed new soft drinks like Diet Pepsi and Mountain Dew in the 1960s. The Pepsi-Cola Company merged with snack food company Frito-Lay in 1965 to become PepsiCo.
Through numerous acquisitions and periods of growth, PepsiCo has become a massive food and beverage conglomerate with 22 brands that have annual revenues of over $1 billion each. With brands like Frito-Lay, Tropicana, Gatorade, Aquafina, and Quaker Oats under their umbrella, PepsiCo has become one of the most diverse companies in the food and beverage market and is consistently recognized around the globe as one of the big two with Coke in the...

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