Net profit margin

Interpretation: analysis

2014 vs 2015

In the year 2014, the net profit margin is higher its 3.20% but 2015 the margin decrease by 2.97%. For
the corporation, roughly 0.23 cents out every sales pesos consists of after tax profit. Pepsi cola is more
efficient at converting sales into actual profit and its cost control is good. Net profit margin that allows
the financial analysis to gauge that how effectively the company to operate. The Net Profit Margin
shows how much net income a company makes with total sales accomplished. A higher net profit
margin implies that a company is more proficient at converting sales into actual profit.

Comparison between the 2014 and 2015

2014 have an actually higher than the 2015. They need to improve or to increase their net profit to
achieve what their goals to the company. Comparing these years, to know if net profit are increasing or
decreasing and to know if year by year is still decreasing.

2015 vs 2016

Pepsi cola net profit margin has increased 2015 than the margin in 2016 by 0.16 cents. It will decrease
in net profit margin and its goes down the net margin. If the net profit margin goes down year by year it
will they not handle their cost very well. Net profit margin it will be not the same as gross profit margin.
2015 have a 2.97% the formula is net income divided by net sales times 100% same as 2016 but the ratio
is 2.81%.

Comparison of 2015 vs 2016

The previous year are much higher than the 2016. It show that both year is a little lower. It have some
causes that Pepsi cola are decrease, like budget overruns or unexpected costs incurred in excess of
budgeted estimates that result of decrease in net profit.

2016 vs 2017

Net profit margin is the indicative of the management's ability to operate the company with sufficient
success. In the summary of ratios year 2016 is higher than the year of 2017, to 2.81% decrease into
2.25%.

Comparison of 2016 vs 2017

5% which means they have a low net profit margin. We compared it to the identical year, to determine
how Pepsi Cola rises or falls there profit. We see that each year, it goes down. Pepsi cola must entice
their performances and make a bit improvement there within the company, to earn profit margin. They
have to increase their net margin by increasing revenue, like by selling more goods or services. In order
that the net margin doesn't decrease by reducing their costs like finding cheaper sources for raw
materials.

2017 vs 2018

Their net profit Margin is like their Operating profit margin, having a negative ratio on 2018 and lower
ratio than expected. Also having a negative is a results of not having the ability to handle on paying their
cost rather well. The year 2018, their net profit turn negative some this might also mean that they could
are underpriced their products. The Net profit margin shows how much net profit a corporation makes
with total sales accomplished.

Compare 2017 vs 2018

They are both the same but year 2018 is a negative ratios that can cause that the balance between
revenue and expenses is off. It means that the money you make from selling your products or services is
not enough to cover the cost of making or selling those products or services. They need to improve their
performance or to raise up their prices and etc. To restore and increase their net profit margin.

2018 vs 2019

Net profit margin all costs are included to find the final benefit of the income of a business. 2018 are
turn to negative but 2019 has improved. Ratios in 2018 have a -0.37% and 2019 have a net profit margin
ratio 1.45%.

Compare 2018 vs 2019

Comparison between the two said years, the ratios are still lower, but they have an improvement in the
year of 2019. It is important to enhance or increase the net profit margin ratio of Pepsi Cola to test on
lending decisions because it effectively reflects the firm net potential value supported earnings. for next
year or perhaps other year, Pepsi cola know that this net profit contains a direct effect on capital
reserves, which suggests the higher the profit margin, the more likely the business are going to be able
to remain resilient in periods of unexpected losses.