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A paper on PepsiCo. PepsiCo is a good investment because it is a well managed company
with strong sales in a large market that is both diverse and world wide. ...
Business Forum Internship Program Paper. Company for Internship Program Subject:
“An Evaluation of PepsiCo for the Internship Program at Daniel University ...
Marketing Definition Paper. ... An old standby as far as successful marketing is PepsiCo.
PepsiCo is an organization that uses marketing to its advantage. ...
How to Get a free term paper. Form 10-K PEPSICO INC - PEP Filed: February 28, 2005
(period: December 25, 2004) Annual report which provides a comprehensive ...
... In this paper, I will maintain that Steve Reinemund's clear, heartfelt commitment
to developing a diverse organization is the primary reason for Pepsico being ...
Submitted by warhawk7 on February 9, 2008
Category: Miscellaneous
Words: 1818 | Pages: 8
Views: 403
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PepsiCo is a good investment because it is a well managed company with strong sales in a large market that is both diverse and world wide. PepsiCo continues to innovate and penetrate new markets (for example the flavored water market), and is not losing market share to competitors. PepsiCo is a safe investment because there will always be a demand for Pepsi's products, even during recessions, and therefore the stock will be resistant to cyclical changes in the market and economy. The dividend does not provide huge amounts of income, but it is a nice cushion.
PepsiCo's income statement shows that 2006 Net Income was significantly higher than both 2004 and 2005 (35% and 38%). One of the key factors that account for this growth is between 2004 and 2005 cost of sales (or cost of goods sold)only increased by 12% and by only 11% between 2005 and 2006. Selling, General & Administrative Expense increased only 4% between 2005 and 2006 while revenues increased by 8% meaning that revenues increased twice as fast as SG&A between 2005 and 2006. This analysis of the income statement illustrates Pepsi's ability to increase revenues while keeping costs under control. Pepsi is thus becoming more efficient while growing.
PepsiCo's Balance sheet shows that liabilities have decreased 17% between 2005 and 2006. The Balance sheet also shows that assets only declined 6%. The larger decrease in liabilities than assets means there has been an increase in stockholder's equity. The increase comes from an increase of 18% in retained earnings. The increase in retained earnings came principally from greater net income, not from a decrease in dividends. There was an increase of 13% in cash dividends paid in 2006 over 2005. This illustrates Pepsi is reinvesting its earnings, and generating more revenue with less debt and fewer assets.
PepsiCo's international growth has been twice as great as North American growth. Pepsi's focus on the international market,...
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