IFRS (International Financial Report Standard) enables the company to realize whether the pension plan scheme is a profit (asset) to them or loss (liability). This enables the company to determine whether the pension plan is overfunded or underfunded (Stickney et al
On the other hand, return on equity is one of the most utilized ratios by both management and shareholders. Essentially, return on equity "measures the accounting return earned on the capital provided by the firm's preferred and common shareholders" (Baker and Powell, 2009, p
28 Liquidity Ratios The liquidity ratio I will highlight for purposes of this discussion is the current ratio. In basic terms, liquidity ratios are of great relevance when it comes to the determination of how ready/prepared a firm is to meet its obligations in the short-run (Brigham and Houston, 2009)
52) further point out is a measure of the "percentage of a firm's total assets financed by debt," the debt-to-equity ratio seeks to identify the equity-debt proportion an entity is making use of to finance its assets. The current ratio is essentially a measure of an entity's ability to settle obligations of a financial nature should they fall due at short notice (Gallagher and Andrew, 2007)
Pepsi is not, however, an innovative company in the soft drink segment altogether. It has relied all too heavily on brand extensions rather than true innovation in order to pursue a growth strategy, leaving true product innovation to smaller firms (Khermouch & Howard, 1999)
One key strength of Pepsi is that is has a broader outlook to growth and profits than does Coca-Cola. The company has in the past operated fast food restaurants such as Pizza Hut and Taco Bell; has been a producer of salty snacks (Frito-Lay) and has acquired successful properties in emerging beverage markets such as Quaker Oats for Gatorade (Venkataraman, 2008)
Discounted cash flows are primarily based on growth rates for sales and operating profit which are inputs from annual long-range planning process." (PepsiCo, 2012 P5)
Discounted cash flows are primarily based on growth rates for sales and operating profit which are inputs from annual long-range planning process." (PepsiCo, 2012 P5)
Discounted cash flows are primarily based on growth rates for sales and operating profit which are inputs from annual long-range planning process." (PepsiCo, 2012 P5)
Current ratio, cash ratio, and quick ratio are types of liquidity ratio. These ratios show the financial position of the firm (Barringer & Ireland, 2011)
Return on Equity (ROE): The amount of net income return as a percentage of shareholders equity (Mathur, 2011). It is ratio of net income to equity (Brigham & Ehrhardt, 2001)
Higher current ratio is a healthy indicator for a company. Current ratio under 1 is not considered good as it indicates company is not sufficiently liquid enough to meet its short-term debt (Mathur, 2011)
47%). Here the question arises which ratio is the most important indicator of company's financial performance? In case of small business net profit margin is the most important indicator of profitability but in this case when business is large the investors are interested in growth of their investment hence, ROE is very important measure of profitabilty here (Peavler, 2010)
32p in gross profit. Higher percentages also suggest that company have more money to reinvest in business or to pay its expenses (Vitez, n
The corporate officials' initial incapability to quickly respond to the allegations and manage the crisis had resulted in sales bans and corporate financial and reputation losses. "They (PepsiCo and the Coca-Cola Company) underestimated their own importance
The corporate officials' initial incapability to quickly respond to the allegations and manage the crisis had resulted in sales bans and corporate financial and reputation losses. "They (PepsiCo and the Coca-Cola Company) underestimated their own importance
This essentially means that PepsiCo has consistently had stronger sales than the Coca-Cola Company. Receivables turnover ratio on the other hand is a worthy measure of how fast a given company is in the collection of accounts receivables (Bragg, 2007)
29% 29.86% Interpretation Profitability ratios come in handy in the determination of how successful a business enterprise is in the utilization of its resources to generate profits (Gitman and McDaniel, 2008)
75 Interpretation The price-earnings ratio largely concerns itself with the relationship between the stock price of a company and its earnings. It "measures a company's future earnings prospects (Warren, Reeve, and Duchac, 2008, p
Rather, responsibility for the defect must still be traced to the proper defendant. Thus, which defendant is responsible for an alleged defect is determined in the trial court (Edwards v. Pepsico, 2008)