PEPSICO

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and PepsiCola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo’s people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo’s promise to provide a wide range of foods and beverages from treats to healthy eats; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. Our goal is to nourish consumers with a range of products that deliver great taste, convenience and affordability, from simple treats to healthy offerings.

Foods

PepsiCo’s foods division Frito-Lay is the leader in the branded salty snack market. All its products are free of trans-fat and MSG. It manufactures Lay’s potato chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high-fibre breakfast cereal, Quaker Oats and low-fat and roasted snack options like Aliva increase the number of healthy choices available to consumers.

Aliva Cheetos Kurkure Lay’s Lehar Namkeen Quaker Oats Uncle Chipps Beverages

PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew, in addition to low-calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drink Gatorade and fruit juices such as Tropicana and Tropicana 100%.

7UP Aquafina Duke's Gatorade Mirinda Mountain Dew Nimbooz Pepsi Slice Tropicana .

Limca. resin manufacturers. automobiles. Coca-Cola in India provides extensive support for community programs across the country. Minute Maid Nimbu Fresh. Through one of the world's largest beverage distribution system. Minute Maid 100%. juices and juice drinks. One of the early investors in India. coffee and sports drinks. Kinley and Georgia range of tea and coffee. Maaza. The Company manufactures and markets leading beverage brands like Coca-Cola. 50. preserve and enhance the environment and strengthen the community. The Company has more than 2. Thums Up. Along with Coca-Cola. Fanta and Sprite and a wide range of other beverages. including Diet Coke. The Coca-Cola Company has always placed high value on good citizenship. mango pulp etc. banking etc. including diet and light soft drinks.8 billion servings each day. Minute Maid Pulpy Orange. Burn. the Coca-Cola system provides direct and indirect employment to more than 1.000 people. Coca-Cola in India is one of the largest domestic buyer of certain agricultural products like sugar.COCA-COLA The Coca-Cola Company is the world's largest beverage company."The CocaCola Company exists to benefit and refresh everyone that it touches". . plastics. consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1. the Company markets four of the world's top five soft drink brands. sugar. Sprite. Diet Coke. This basic proposition entails that the Company's business should refresh the markets. protect. Fanta. water. recognized as the world's most-valuable brand.15 million retailers and our business has a multiplier effect on employment and earning opportunities. The Company's business also positively impacts industries like glass. At the heart of business is a mission statement called the Coca-Cola Promise . tea. Coca-Cola in India is the country's leading beverage Company with an unmatched portfolio of beverages. white goods manufacturers.

health and water conservation.with a focus on education. The system has also undertaken the rejuvenation and reconstruction of several traditional water bodies including check dams. The Coca-Cola system is committed to work with communities across India in its effort to contribute to mutual growth and development. Coca-Cola Diet Coke Thums Up Sprite Fanta Limca Maaza Minute Maid Pulpy Orange Minute Maid Nimbu Fresh Burn Kinley Water Kinley Soda Schweppes GEORGIA Gold . The system has installed more than 500 rain water harvesting structures in the country.

Bills Payable. Due/Accrued Income. Bills Receivable.09 = 30.72 17. Provision for Tax. Closing Stock of raw material. etc. Current Liabilities : It includes Sundry Creditors.33 27. Pepsi co.0902 . It is used by a creditor to judge the safety margin available and to decide the amount and the terms of the credit. = 18. A current ratio of 2:1 is regarded as standard ratio. Cash and Bank Balance. Loose Tools. Current ratio is a liquidity/Solvency ratio which includes the ability of the concern to meet its short term liabilities. Bank Overdraft. It measures the short term solvency of the concern. Outstanding Expenses. etc.82 = 1. Current Ratio = Current Assets Current Liabilities Current Assets : It includes Sundry Debtors.Balance Sheet Ratios: 1.0954 Coca-Cola India = 1. Unclaimed dividend.

66 = 0. Liquid ratio compares the quick assets with the quick liabilities.285= 0. A liquid ratio of 1:1 is regarded as standard liquid ratio.7993 17. Quick Liabilities : It includes all Current Liabilities elements. = 13.82 Coca-Cola India . but it excludes Closing stock and Pre-payments from current assets. Quick / Liquid Ratio = Quick Assets Quick Liabilities Quick Assets : It includes all Current Assets elements.09 = 24. but it also excludes Bank Overdrafts and Cash Credit from current liabilities.2. It is expressed in the form of pure ratio. Pepsi co.8729 27. It is also known as Quick ratio or Acid ratio.

A stock to working capital ratio is considered it’s standard ratio as 100%. Stock To Working Capital Ratio = Stock * 100 Working Capital Working Capital : It contain the balance of current assets less current liabilities .264 = 1.51 Coca-Cola India .63 = 3. Stock : It includes all closing stock. It helps to judge the quantum of inventory in relation capital of the business.3004 2. Stock to working capital ratio show the relationship between the closing stock and the working capital.3.581 = 2. It is also known as Inventory Working Capital Ratio. Pepsi co. It is expressed as a percentage.1969 1. = 3.

P&L Debit balance Less: .e. Pepsi co. It is also known a Net Worth to Total Assets Ratio.Accumulated losses i. =0 0 =0 0 =0 Coca-Cola India =0 . Equity Ratio and Net worth Ratio or Asset Backing Ratio. A proprietary ratio of 65% is regarded as standard ratio. Paid up Preference Capital Total Assets : It includes Fixed Assets + Investment + Current Assets Total Liabilities : It includes Own Funds + Loans + Current Liabilities Proprietary ratio compares proprietor’s funds with total liabilities or total assets. revenue reserves Profit and loss Credit balance Less: .4.Fictitious Assets like Miscellaneous Expenditure not written off. It is usually expressed in the form of percentage. Proprietary Ratio = Proprietor’s Funds or Shareholder’s Equity *100 Total Assets or Total Liabilities Proprietor’s Funds : It includes Paid up Equity capital Reserves and Surplus including capital reserves.

. etc. and (ii) the balance between debt and equity. Proprietor’s Funds : It includes Equity share capital Reserves & Surplus Less:. Debt-equity ratio shows the (i) margin of safety for long term creditors.Equity Ratio = Debt Equity = Borrowed Funds Proprietor’s Funds Borrowed Funds : It includes Debentures. If the actual Debt-equity ratio is close to 2:1 (regarded as standard). Loans. Interest accrued and due. Debt.P&L A/C Debit balance(loss) Miscellaneous Expenditure not written off Preference share capital Debt-Equity ratio is a solvency ratio which indicates the proportion of debt and equity in financing of the assets of the concern.5.

Capital not so Entitled to Fixed Ratio of Interest or Dividend: It includes Equity share capital Reserves & Surplus Less:.6. Capital gearing ratio shows the balance between debt and equity. Long term Loans. Borrowed Funds. .P&L A/C Debit balance(loss) Fictitious Assets Capital gearing ratio is a leverage ratio which indicates the proportion of debt and equity in the financing of assets of assets of a concern. ‘Leverage’ means the process of increasing the equity shareholders return through the use of debt also known as ‘gearing’ or ‘trading on equity’. etc. Debentures. Capital Gearing Ratio = Capital Entitled to Fixed Ratio of Interest or Dividend Capital not so Entitled to Fixed Ratio of Interest or Dividend Capital Entitled to Fixed Ratio of Interest or Dividend: It includes Preference capital.

Cost of Goods Sold: It includes Opening stock Add: Purchase Add: Direct expenses Less: Closing stock Net Sales: It includes Sales less Sales returns less Allowances. Gross Profit ratio is a profitability ratio. which shows the relationship between profits and sales. Gross Profit Ratio = Gross Profit *100 Net Sales Gross Profit: It includes Sales less Cost of Goods Sold.Revenue Statement Ratios: 1. . selling and inventory. purchase. This ratio help to judge (i) how efficient the concern is in managing its production. (ii) how good its control is over the direct cost. (iv) how much amount is left to meet other expenses and earn net profits. (iii) how productive the concern is.

It is expressed by way of percentage. Operating Ratio = Cost of Goods Sold + Operating Expenses * 100 Net Sales Cost of Goods Sold: It includes Opening stock Add: Purchase Add: Direct expenses Less: Closing stock Operating Expenses: It includes Office and Administration Expenses. Net Sales: It includes Sales less Sales returns less Allowances. Finance Expenses Excluding Interest on Loans and Debentures. . The standard ratio for operating ratio is 100%.2. Selling and Distribution Expenses. Operating ratio expresses the relationship between total operating cost and net sales.

3. Total of all Expenses ratio will be equal to Operating ratio. . Expenses Ratio = Expenditure * 100 Net Sales Expenditure: It includes Administrative Expenses Selling Expenses Operating Expenses Net Sales: It includes Sales less Sales returns less Allowances. Expenses ratio expresses the relationship between each item of expenditure and net sales. It is expressed as a percentage.

Operating Profit Ratio = Operating Profit * 100 Net Sales Operating Profit: It includes Gross profit Less: Operating expenses Office and Administration Expenses. It is usually expressed in the form of percentage. Operating Profit ratio indicates the relationship between Operating profit and the sales. Net Sales: It includes Sales less Sales returns less Allowances. It is also known as Net Operating Profit Ratio.4. Finance Expenses Excluding Interest on Loans and Debentures. . Selling and Distribution Expenses.

financing and investment. . and (c) buying/selling investments. It is usually expressed in the form of a percentage. Net Profit ratio indicates the relationship between net profit and the sales. (b) financing activities of borrowing/ lending . Net profit ratio is a profitability ratio. which shows the relationship between profits and sales. It measures the overall profitability from (a) operating activities of buying/selling products. This ratio helps to judge (i) how efficient the concern is in managing all its activities of operations . and (ii) how much amount is available is for appropriations. Net Profit Ratio = Net Profit (before tax) * 100 Net Sales Net Profit before tax: It includes Operating net profit Add: Non-operating income Less: Non-operating expenses Net Sales: It includes Sales less Sales returns less Allowances.5. It indicates net profits from all type of activities of the entire business.

6. . Stock Turnover Ratio = Cost of Goods Sold Average Stock Cost of Goods Sold: It includes Opening stock Add: Purchase Add: Direct expenses Less: Closing stock If stock is valued at sales price. and (iii) judge how efficiently the stock are managed and utilized to generate sales. formula will be = Net Sales Average Stock Average Stock = Opening Stock + Closing Stock 2 Stock Turnover ratio is a activity ratio. (ii) calculate the stock velocity to indicate the period taken by the average stock to be sold out. There is no standard Stock turnover ratio in absolute terms. which shows the relationship between sales and stock. Its purpose is to (i) calculate the speed at which stock is being turned over into sales.

. tax) *100 Capital Employed Profit before interest & tax: It includes Profit before interest on long term borrowings. Its purpose is to measure the overall profibility from the total funds made available by the owners and lenders. tax & dividends Less: Abnormal.Composite Ratios: 1. Return on Investment/ Capital Employed = Profit (before interest. Thus ratio helps to judge how efficient the concern is in managing the funds at its disposal. non-recurring items. Capital Employed: It includes Fixed Assets Add: Current assets Less: Current Liabilities Exclude fictitious assets Return on capital employed ratio is profitability ratio which shows the relationship between profits and investments. Capital Employed: It includes Equity capital Add: Preference capital + Reserves & Surplus Add: Long term Borrowings (Term loans + Debentures) Less: Factious assets like Miscellaneous Expenditures not written off Less: Profit & Loss A/C Debit Balance (loss) Capital employed may be taken to mean Assets Employed in which case.

e. This ratio helps to judge how efficient the concern is in managing the owner’s funs at its disposal.Accumulated losses i.Fictitious Assets like Miscellaneous Expenditure not written off. Return on Proprietor’s Fund = Net Profit (after tax) *100 Proprietor’s Funds Net Profit (after tax): It includes Profit after interest and tax. Its purpose is to measure the rate of return on the total fund made available by the owners.2. revenue reserves Profit and loss Credit balance Less: . Proprietor’s Funds : It includes Paid up Equity capital Reserves and Surplus including capital reserves. which shows the relationship between profits and investments by the proprietors in the concern. Paid up Preference Capital Return on Proprietor’s Fund is a profitability ratio. P&L Debit balance Less: . .

Return on Equity Capital = Profit available to Equity Shareholders * 100 Equity Shareholders Funds Profit available to Equity Shareholders: It includes Profit available after interest. . Equity Shareholders Funds: It includes Equity capital Reserves & Surplus Less: Factious assets like Miscellaneous Expenditures not written off Less: Profit & Loss A/C Debit Balance (loss) Return on Equity Capital is profitability ratio. transfer to reserves etc. keep or sell the equity shares. Its purpose is to calculate the amount of profits available to take care of equity dividends. which shows the relationship between profits and the equity shareholder funds in the concern.3. It is used by the present or prospective investors for deciding whether to purchase. tax and preference dividend.

4. which show the relationship between profits and the number of equity shares in the company. Earning Per Shares = Net Profit attributable to equity shareholders No. transfer to reserves. Earning Per Shares is a profitability ratio. No. of Equity Shares: It includes number of equity shares outstanding. etc. Its purpose is to calculate the amount of profits available on each equity share to take care of equity care of equity dividend. of Equity Shares Net Profit attributable to equity shareholders: It includes Profit after tax less preference dividend. keep ar sell the equity shares. It is used by the present or prospective investors for deciding whether to purchase. .

It is usually expressed as a fraction.5. Price Earnings Ratio = Market price of an equity share Earnings per share Market price of an equity share: It includes Quoted price of a listed equity share. of Equity Shares Price Earnings Ratio measures the relationship between the Market price of the equity share and the Earning Per Share. . Earnings per share: It includes = Net Profit attributable to equity shareholders No.

income tax and preference dividends.Creditors Turnover Ratio . Debt Service Ratio 8. Profit Available to Equity Shareholders: It includes Profit Available to Equity Shareholders means Net Profit after interest. Dividend Payout Ratio = Dividend to Equity Shareholders * 100 Profit Available to Equity Shareholders Dividend to Equity Shareholders: It includes Equity Dividend means the cash dividend paid to equity shareholders. Debt Service Coverage Ratio 9.6. Dividend Payout Ratio shows the relationship between the dividend paid to equity shareholders out of the profits available to the equity shareholders. 7. Debtors Turnover Ratio 10.

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